Chevron posted record US output last year

Chevron reported record US oil and natural production last year, led by a 16pc increase from its Permian shale basin operations.

US output increased 4pc to 1.2mn b/d of oil equivalent (boe/d), the company said today as it announced annual profit of $35.5bn for 2022.

"We delivered record earnings and cash flow in 2022, while increasing investments and growing US production to a company record," chief executive Mike Wirth said.

The record earnings came just days after Chevron tripled the size of its share buyback program to $75bn, to the fury of the White House which has accused the oil industry of profiteering from the war in Ukraine and not doing enough to bring down prices at the pump. Calls for a windfall tax on oil company profits may gather momentum as a result.

Chevron also increased its quarterly dividend by 9¢/share to $1.51 apiece.

The company returned more than $22bn to investors last year through dividends and share repurchases.

Global output of 3.01mn boe/d in the fourth quarter was down 3pc from the same period of 2021. Chevron's international production slipped 7pc last year as concessions in Thailand and Indonesia expired.

Overall production is expected to be flat to 3pc higher this year, based on a Brent crude price of $80/bl.

After adjusting for lower prices, the sale of its Eagle Ford asset and the end of a contract in Thailand, output is set to grow, led by the Permian and other shale assets.

Chevron reported a fourth-quarter profit of $6.4bn, up from $5.1bn in the year-earlier period. Full-year 2021 profit was $15.6bn.

The company reported a $1.1bn writedown in relation to its international assets.

Return on capital employed exceeded 20pc, the highest since 2011, and a reflection that "our focus on capital efficiency is delivering results," according to Wirth.

ExxonMobil, the biggest US oil company, is scheduled to report earnings on 31 January.

By Stephen Cunningham