Chevron Q1 results: ‘CVX is the most attractive of the large caps’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 29, 2022
  • Chevron Corp reported its financial results for fiscal Q1 on Friday.
  • Mad Money host Jim Cramer recommends buying Chevron stock.
  • Shares of the oil giant are down roughly 2.0% on Friday morning.

Shares of Chevron Corp (NYSE: CVX) are down 2.0% on Friday after the oil giant said its Q1 profit fell shy of Street estimates despite a close to four-fold increase on a year-over-year basis.

Chevron Q1 financial highlights

  • Net income printed at $6.26 billion that translates to $3.22 per share.
  • In Q1 last year, net income was capped at $1.38 billion (72 cents a share).
  • Adjusted for one-time items, per-share earnings came in at $3.36.
  • At $54.37 billion, revenue was up 69.8%, as per the earnings press release.
  • FactSet consensus was for $3.41 of adjusted EPS on $51.14 billion in revenue.

Average price for a barrel of crude oil and natural gas liquids jumped 60.4% in the recent quarter, while natural gas average sales price per thousand cubic feet of natural gas climbed 90.7%. The stock is up more than 30% for the year.

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Jim Cramer says buy the stock

Other notable figures in the earnings report include a 10% increase in U.S. domestic production and an 8.0% decline internationally.

Chevron generated $8.10 billion in cash flow from operations – close to a 100% annualised increase. On CNBC’s “Squawk on the Street”, Jim Cramer said:

Just buy this stock. This is the most attractive of the large caps because of the yield and buyback. They’re doing a lot of offshore; offshore makes a lot of money. They’re doing a lot of low-carbon stuff. I got some comfort from Mike Worth about the pipeline that goes through Russia as well.

For strong Q1 revenue, Chevron cited post-pandemic demand and higher oil prices that Cramer says could climb back to $110 a barrel and, therefore, be a tailwind for the energy company.

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