Chevron Corp (CVX) - Get Chevron Corporation Report posted stronger-than-expected second quarter earnings Friday and pledged to resume share buybacks as free cash flow hit the highest levels in two years thanks to the broader oil market rebound.
Chevron said adjusted earnings for the three months ending in June came in at $1.60 per share, up from a $1.59 per share loss over the the same period last year and four cents ahead of the Street consensus forecast.
Group revenues, the company said, surged 178% higher from last year to $37.6 billion, again topping analysts' estimates of a $34.7 billion tally. Worldwide net production rose 145,000 barrels from last year to 114 million, Chevron said.
West Texas Intermediate crude prices traded between $63 and $75 per barrel over the three months ending in June, a range that was around 300% higher than the deep pandemic troughs recorded over the same period last year.
“Second quarter earnings were strong, reflecting improved market conditions, combined with transformation benefits and merger synergies,” said CEO Mike Wirth. “Our free cash flow was the highest in two years due to solid operational and financial performance and lower capital spending.
“We will resume share repurchases in the third quarter at an expected rate of $2 billion to 3 billion per year,” he added.
Chevron shares were marked 0.35% higher in early trading immediately following the earnings release to change hands at $102.85 each.
Chevron's larger rival, Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report, said Friday that adjusted earnings for the three months ending in June were pegged at $1.10 per share, up from a 70 cents per share loss from the same period last year and 12 cents ahead of the Street consensus forecast.
Group revenues, Exxon said, surged 107% to $67.75 billion, firmly topping analysts' estimates of $65.6 billion.