Chevron Guides Q3 Downtime at 150-200 Mboe/d, Capex at Low End, $2.5-3B Buyback
CVX sits 36% above its 52-week low of $146.49.
Summary
Chevron provided detailed Q3 guidance alongside its blowout Q2 earnings. Turnaround downtime is pegged at 150-200 thousand boe/d, with a $175-225 million after-tax earnings hit from downstream maintenance. The company now expects full-year organic capex at the lower end of its $18-19 billion range, with per-barrel capex down 25% year-over-year. Q3 affiliate dividends are forecast at $1.5-1.7 billion, and share repurchases are set at $2.5-3.0 billion. Additionally, a $1.0 billion TCO loan repayment is planned, and Guyana production will dip as cost recovery reduces net entitlement. This granular outlook follows the earlier headline warning of a Q3 output drop and adds financial specifics that refine the investment thesis.
At the time of this announcement, CVX was trading at $198.54 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $383B. The 52-week trading range was $146.49 to $214.71. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.