Chevron Stock Gains After Posting Biggest Profit in Years

This article first appeared on GuruFocus.

Chevron (NYSE:CVX) delivered its strongest quarterly profit in years as higher oil prices and improved refining margins lifted results well above the prior-year period.

Shares rose about 2% on Friday after the report.

Chevron reported second-quarter net income of $12.07 billion, or $6.11 per share, compared with $2.49 billion, or $1.11 per share, a year earlier. Revenue increased 57.4% to $70.56 billion, while adjusted earnings reached $11.97 billion, or $6.06 per share.

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Chevron's production also expanded during the quarter. Total output rose 20% from a year earlier to 4.07 million barrels of oil equivalent per day, helped by the Hess acquisition, higher Permian Basin output and record U.S. production of 2.07 million barrels of oil equivalent per day.

Chevron benefited across its operations. U.S. upstream earnings climbed to $3.54 billion, while international upstream earnings reached $4.64 billion. Downstream earnings also improved, with U.S. and international operations generating $2.41 billion and $2.46 billion, respectively.

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