Chevron Corporation (CVX) is scheduled to report their fourth quarter 2009 results on Friday, January 29, 2010. In the last four quarters ending September 2009, the company's reported financial figures showed considerable volatility.
Chevron Corporation) is one of the largest integrated energy companies in the world. The company is engaged in every aspect of the oil and natural gas industry, including exploration and production, refining, marketing and transportation, chemicals manufacturing and sales, geothermal, mining operations, and power generation. It has operations in more than 100 countries including the US. Chevron operates through four business divisions: upstream, downstream, chemicals, and all others.
The company's third quarter 2009 earnings were down 51% from the third quarter of 2008. The third quarter earning were 120% higher than second quarter 2009. Return on capital employed for the trailing 12 months was 12.6% and the debt ratio was 10.4% at the end of the quarter. The company's net cash flow position in Q3 was positive by nearly $2 billion after funding capital program, dividend commitments and $700 million in pension contributions.
Analysts' estimates for the fourth quarter range from a low of $1.64 to a high of $1.97, compared to a consensus estimate of $1.774. According to Thomson Financial, for the fiscal quarter ending December 2009, the consensus EPS forecast has increased over the past week from $1.753 to $1.774 (1.20%) and increased over the past month from $1.724 to $1.774 (2.90%). Of the 13 analysts making quarterly forecasts, 3 raised and 4 lowered their forecast.
In the fourth quarter, Enterprise Products Partners LP acquired three intrastate natural gas liquids (NGL) pipeline systems from Chevron Midstream Pipelines LLC, an oil and gas exploration, production and refinery company and an unit of Chevron Corp. On January 6, 209, Crosstex Energy LP acquired the entire share capital of Chevron Midstream Pipelines-Intracoastal Pipeline, oil and gas explorer and producer.
Earnings for the fourth quarter 2009 are expected to be lower than in the third quarter 2009. Upstream earnings are projected to be in line with third quarter results as the benefit of higher commodity prices is offset by the absence of gains recognized in the third quarter associated with formal approval of the Gorgon project in Australia. Downstream results are expected to be sharply lower, mainly due to significantly weaker refining margins.
Currently, the stock is trading at $79.55, compared to 52 week range of $56.12 and $81.09. In the last one year the share price rose by 11.07%. Much depends on the price of oil which is currently down. Assuming a low volatility in oil price, the company's share price could go up to $85 in the next two quarters.
