Ahead of its Q2 report on July 28, the integrated energy company Chevron (NYSE:CVX) provided second-quarter highlights. Its Q2 earnings came in higher than the Street’s forecast. However, the adjusted earnings were significantly lower than the prior-year quarter due to lower oil prices. Separately, the company announced changes to its senior leadership.
Q2 Earnings Beat Estimates
The company delivered quarterly adjusted earnings of $5.8 billion, or $3.08 a share, beating analysts’ estimates of $2.97 per share. However, this compared unfavorably to the prior year’s and the previous quarter’s EPS of $5.82 and $3.55, respectively.
CVX’s production volumes came in at 2,959 MBOED (Million Barrels of Oil Equivalent per Day), which was higher than analysts’ consensus estimate of 2,941 MBOED, noted Goldman Sachs analyst Neil Mehta.
The analyst highlighted that CVX’s worldwide production volumes, particularly Permian volumes, came above expectations. CVX’s Permian production volumes were 772 MBOED in Q2 compared to Q1 volumes of 717 MBOED.
Mehta reiterated a Hold recommendation on CVX stock and sees commodity prices as a significant risk. The analyst has a price target of $166 on CVX, implying an upside potential of 4.6%.
Chevron Leadership Changes
Separately, CVX announced several senior leadership changes and waived the mandatory retirement age (65 years) for its CEO, Mike Wirth.
The company’s VP and CFO, Pierre Breber, will retire in 2024. Meanwhile, Eimear Bonner, currently VP and CTO, will succeed Breber, effective March 1, 2024.
In addition, CVX’s current VP of Strategy & Sustainability, Balaji Krishnamurthy, will become VP of the company’s Technical Center. Further, Molly Laegeler, its current VP of the San Joaquin Valley Business Unit, will become VP of Strategy & Sustainability. Moreover, its current VP of M&A and Origination, Frank Mount, will become VP of Business Development.
Is CVX a Buy, Sell, or Hold?
The lower oil prices keep analysts cautiously optimistic about CVX stock. It sports a consensus rating of Moderate Buy on TipRanks based on nine Buy and eight Hold recommendations. Furthermore, these analysts’ average price target of $186.29 implies 17.39% upside potential from current levels.
