Chevron reported third-quarter adjusted earnings of nearly $10.3 billion, or $5.28 per share, almost triple the $3.6 billion ($1.65 per share) a year earlier, while free cash flow reached $12 billion versus $4.9 billion. Brent crude averaged $97 per barrel versus $69 a year earlier amid Persian Gulf supply disruptions, lifting U.S. downstream earnings more than 450% to almost $3.6 billion even as production fell nearly 3%. Chevron cut net debt by $7.8 billion in the quarter and $14 billion since the end of last year, lowering its leverage ratio from 1.1x to 0.4x. However, the shares have surged more than 50% this year near their all-time high, trading at 16x trailing adjusted earnings, and the author views the quarter as an unreliable baseline given elevated oil prices and refining margins. The author says they would wait for a more attractive valuation before buying more shares.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Chevron’s Profit Nearly Tripled From a Year Ago. Is CVX Stock a Buy After Its Blowout Earnings Report?
Read the original on Yahoo Finance ↗
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