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Chevron shares gain the most since early March on Friday, quarterly earnings surge past estimates on strong oil and gas production growth

Chevron Corp’s (CVX) quarterly earnings, reported on Friday, far exceeded Wall Street estimates, supported by growth in the company’s oil and gas production. A 44% jump in crude oil prices offset a slump in profit from Chevron’s downstream business last quarter.

Chevron shares closed higher for the fourth time in the past ten trading sessions in New York on Friday. It has also been the sharpest daily surge since March 9th. The stock went up 3.20% ($3.56) to $114.73, after touching an intraday high at $117.05, or a price level not seen since October 22nd ($118.49).

Shares of Chevron Corp have retreated 8.36% so far in 2018 compared with a 1.85% gain for the benchmark index, S&P 500 (SPX).

In 2017, Chevron’s stock went up 6.36%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Chevron’s oil and gas production grew 9% during the third quarter from a year ago. Production in the West Texas shale fields registered an 80% growth, or 150 000 additional barrels per day. The company said it expected a 7% growth in total oil and gas production for the full year.

According to Patricia Yarrington, Chevron’s Vice President and Chief Financial Officer, 20 drilling rigs were run by the company in the Permian Basin during the third quarter and that same number is also expected to be operated during the fourth quarter.

Chevron’s net income went up to $4.05 billion ($2.11 per share) during the third quarter, from $1.95 billion ($1.03 per share) during the same period a year ago. In comparison, analysts on average had expected earnings of $2.06 per share.

Meanwhile, profit from Chevron’s downstream business was reported to have shrunk 24% year-on-year during the past quarter due to struggling international refining operations. Chevron said that higher planned maintenance activity would probably weigh on its downstream profit and cash flow during the fourth quarter.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Chevron Corp’s stock price, have a median target of $145.00, with a high estimate of $160.00 and a low estimate of $128.00. The median estimate represents a 26.38% upside compared to the closing price of $114.73 on November 2nd.

The same media also reported that 15 out of 25 surveyed investment analysts had rated Chevron Corp’s stock as “Buy”, while 7 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Chevron Corp (CVX) are presented as follows:

Central Pivot Point – $113.11
R1 – $118.67
R2 – $122.62
R3 – $128.18
R4 – $133.75

S1 – $109.16
S2 – $103.60
S3 – $99.65
S4 – $95.71

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