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Chevron Corporation (CVX ) is a global energy business that aims to deliver higher returns, lower carbon and superior shareholder value in any business environment. The company produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals and additives, and develops technologies related to these businesses.
The company generated 30% of its revenue from upstream and 70% of its revenue from downstream, although the lion’s share of its earnings came from upstream during the first quarter of 2020. International revenues accounted for about 60% of its upstream revenue and about 52% of its upstream revenue over the quarter.
In terms of geographic diversification, the company’s operations are widely dispersed across North America, South America, Europe, Africa, the Middle East, Asia and Australia.
Chevron reported first-quarter revenue that rose by 4.6% to $31.07 billion, missing consensus estimates by $1.48 billion, while swinging to a profit with non-GAAP earnings of 90 cents per share, missing estimates by four cents. Production levels came in slightly below forecasts for both liquids and natural gas, while the Texas storm cost $300 million in total.
Analysts have been bullish on the stock amid forecasts for rising oil prices. Mizuho analyst Daniel Boyd recently reiterated his buy rating on the stock, saying that Brent crude could reach $70 per barrel amid stronger-than-expected demand. Wells Fargo also recently noted that a resumption in buybacks could be a positive catalyst for the stock.
The company raised its quarterly dividend by 3.9% to $5.36 per share, which represents a 5.02% yield. The dividend is payable on June 10, 2021, to shareholders on record as of May 19, 2021.
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