Chevron Corp earned $6.5 bn for 3Q 2023, down from $11.2 bn in 3Q 2022, primarily due to lower upstream realizations and lower margins on international refined product sales, said the company.
Included in the current quarter were a one-time tax benefit of $560 M in Nigeria and pension settlement costs of $40 M. Foreign currency effects increased earnings by $285 M. Adjusted earnings of $5.7 bn in 3Q 2023 compared with adjusted earnings of $10.8 bn in 3Q 2022. Sales and other operating revenues in 3Q 2023 were $51.9 bn, down from $63.5 bn in 3Q 2022. Capital expenditure in 3Q 2023 was up over 50% from 3Q 2022.
This includes about $400 M of inorganic spend largely due to the acquisition of a majority stake in ACES Delta LLC, but excludes the acquisition of PDC Energy Inc. Quarterly shareholder distributions were $6.2 bn, including dividends of $2.9 bn and share repurchases of $3.4 bn. Share repurchases were lower than the prior quarter due to restrictions related to the acquisition of PDC Energy. The company's board of directors declared a quarterly dividend of $1.51/share, payable 11 Dec 2023, to all holders of common stock as shown on the transfer records of the corporation at the close of business on 17 Nov 2023.
Chevron's upstream earnings were $5.7 bn for 3Q 2023, down from $9.3 bn recorded in 3Q 2022, reflecting lower commodity prices. The company's worldwide net oil-equivalent production was up 4% from the year-ago quarter primarily due to the acquisition of PDC Energy. US net oil-equivalent production was up 20% from 3Q 2022 and set a new quarterly record, primarily due to the acquisition of PDC Energy, which added 179,000 boe/d during the quarter, and net production increases in the Permian basin. US upstream earnings were lower than a year ago, primarily on lower realizations partially offset by earnings associated with PDC Energy. International net oil-equivalent production was down 112,000 b/d from a year earlier primarily due to higher impacts from turnarounds, shutdowns and normal field declines.
International upstream earnings were lower than a year ago primarily due to lower realizations and lower sales volumes, partially offset by a favourable one-time tax benefit of $560 M in Nigeria and foreign currency effects. The downstream segment of the company reported a profit of $1.68 bn, which marked a decrease from the $2.53 bn recorded a year ago. This decline was primarily attributed to significantly lower performance in international markets. US downstream earnings were $1.37 bn during the quarter, compared with $1.29 bn a year ago primarily due to higher margins on refined product sales. Refinery crude oil inputs increased 23% from the year-ago period primarily due to the absence of 2022 turnaround activity at the Richmond, CA, US, refinery. Refinery product sales were up 4% from the year-ago period, primarily due to higher demand for jet fuel.
We remind, Chevron Corp has agreed to acquire Hess Corp in an all-stock transaction valued at $53 bn, further diversifying the energy company's portfolio with the addition of Stabroek block interests offshore Guyana and adding Bakken acreage to the company's existing US shale position. The deal is expected to increase Chevron’s estimated 5-year production and free cash flow growth rates and extend such growth into the next decade, the company said in a release Oct. 23.
mrchub.com