- Third-quarter revenues and other income were $24.45 billion, down 32.3%.
- Chevron posted third-quarter production of 2,834K Boepd, down 6.6% from the same quarter a year ago and down 5.2% sequentially. Oil represents 1,707K Boepd or 60.2% of the total production.
- CVX is a reliable long-term investment and should be accumulated now.
- Looking for more investing ideas like this one? Get them exclusively at The Gold And Oil Corner. Get started today »
Investment Thesis
Chevron Corp. (NYSE:CVX) released its third-quarter results on October 30, 2020. The company reported surprising adjusted third-quarter earnings per share of $0.11. The better-than-expected results were due to successful cost reduction efforts, which provided lower operating expenses and CapEx reduction of over 50%, year over year.
Despite this positive performance, the adjusted third-quarter profit pales compared to the $1.55 per share realized the same quarter a year ago. Sharply lower oil and natural gas price realizations, plus a decline in refined product margins, are mostly to blame.
Chevron is one of my selected seven oil companies.
The stock is now down over 42% YTD.
Data by YCharts
The investment thesis is simple, with a company like CVX. The company is a reliable long-term investment and should be accumulated now. However, it is also essential to trade short term about 30% of your CVX holding to take full advantage of the volatility.
