Simpson likes $COP and $MPC ‘a little better’ than Chevron after its Q1 earnings

By:
on Apr 26, 2024
Listen
  • Chevron reported its financial results for the first quarter today.
  • Kevin Simpson shares his view on the oil and gas stock.
  • Chevron stock is up roughly 17% versus its year-to-date low.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Chevron Corp (NYSE: CVX) is in focus this morning after coming in shy of revenue estimates for its fiscal first quarter. 

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Kevin Simpson shares his view on Chevron stock

Copy link to section

The energy giant attributed the weakness to a lower margin at its refineries and natural gas prices that have tanked 35% since the start of 2024. 

On the plus side, Chevron saw an annualised growth of 16% to about $2.0 billion in earnings from its U.S. oil and gas business. Note that ahead of its press release, Kevin Simpson of Capital Wealth Planning trimmed his exposure to $CVX

We’ve owned it forever but we still have ConocoPhillips, we still have Marathon Petroleum – both of which we like a little bit better.

Speaking with CNBC, however, Simpson confirmed that his move is not a criticism of Chevron stock. All he wanted was just to take profit off a name that’s done well this year. 

Notable figures in Chevron Q1 earnings release

Copy link to section
  • Earned $5.5 billion versus the year-ago $6.57 billon
  • Per-share earnings also declined from $3.46 to $2.97
  • Adjusted EPS printed at $2.93 as per the earnings report
  • Revenue inched down just over 4.0% to $48.72 billion
  • Consensus was $2.87 a share on $50.66 billion in revenue

Production stood at 1.57 million barrels a day in the U.S. – up 35% versus the same quarter last year. 

Chevron spent $3.0 billion on dividends and another $3.0 billion (approximately) on stock buybacks in Q1. Still, its return on capital was down some 2.2% versus last year, as per the earnings press release.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Chevron Oil USA Earnings Reports Energy & Power North America Stock Market World