Chevron (CVX) unexpectedly reported to a fourth-quarter loss Friday despite the rebound in crude oil prices, in the first report from a global oil major. Chevron stock fell.


Exxon Mobil (XOM) and BP (BP) will report Q4 results on Tuesday and Royal Dutch Shell (RDSA) is on tap for Thursday.

Chevron Earnings

Estimates: Earnings seen tumbling 94{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to 9 cents per share, according to analysts polled by Zacks Investment Research. Revenue is seen falling 24{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to $27.6 billion.

Results: Loss of 1 cent a share on revenue of $25.25 billion. U.S. upstream operations swung to a profit of $101 million in Q4 vs. a $7.47 billion loss in the year-ago-quarter, which included an $8.2 billion charge.

Worldwide net oil-equivalent production grew 6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to 3.28 million barrels per day, largely due to the Noble Energy acquisition.

The company reported full-year asset sales of $2.9 billion, bringing the 2018-2020 total to $7.7 billion. Chevron cut capital spending by 35{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} for the year and added 832 million barrels of net proved reserves in 2020 with the Noble deal accounting for the bulk of the increase.

On Wednesday, management announced that it will maintain the quarterly Chevron stock dividend at $1.29, though the annual payout increased.

Stock: Shares fell 1.9{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to 87.30 in premarket trading on the stock market today. Chevron stock is in a flat base with a 95.92 buy point, according to MarketSmith analysis. Exxon lost 0.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, BP eased 1.3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} and Shell fell 1.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.

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Oil Rally And Chevron Stock

Oil prices and oil stocks have seen historic volatility in 2020 amid the Covid-19 pandemic.

But they rallied toward the end of the year as coronavirus vaccines were approved and after OPEC+ agreed to a more modest output-quota hike than initially planned. They got a further boost Jan. 5 after Saudi Arabia announced a surprise output cut at another OPEC+ meeting.  The rebound helped lift Chevron stock from fall lows.

Still, the company expects to see crude prices taking longer to fully bounce back to previous highs and joined other oil majors in cutting investments.

On Dec. 3, Chevron slashed its long-term capital spending guidance to $14 billion-$16 billion annually through 2025 from a prior view of $19 billion-$22 billion.

But the company still plans to increase investments in certain assets, such as those in the Permian Basin, other unconventional plays, and the Gulf of Mexico.

Chevon could see some asset reduction in the future as the Biden administration looks to ban new drilling on federal land. Last year the company said that along with its new Noble holdings, federal lands account for less than 10{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} of its holdings.

Follow Gillian Rich on Twitter @IBD_GRich for energy news and more.


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