Simpson likes $COP and $MPC ‘a little better’ than Chevron after its Q1 earnings

Chevron Corp (NYSE: CVX) is in focus this morning after coming in shy of revenue estimates for its fiscal first quarter. 

Kevin Simpson shares his view on Chevron stock

The energy giant attributed the weakness to a lower margin at its refineries and natural gas prices that have tanked 35% since the start of 2024. 

On the plus side, Chevron saw an annualised growth of 16% to about $2.0 billion in earnings from its U.S. oil and gas business. Note that ahead of its press release, Kevin Simpson of Capital Wealth Planning trimmed his exposure to $CVX. 

We’ve owned it forever but we still have ConocoPhillips, we still have Marathon Petroleum – both of which we like a little bit better.

Speaking with CNBC, however, Simpson confirmed that his move is not a criticism of Chevron stock. All he wanted was just to take profit off a name that’s done well this year. 

Watch here: https://www.youtube.com/embed/wLtAfiYm4Ag?feature=oembed

Notable figures in Chevron Q1 earnings release

• Earned $5.5 billion versus the year-ago $6.57 billon
• Per-share earnings also declined from $3.46 to $2.97
• Adjusted EPS printed at $2.93 as per the earnings report
• Revenue inched down just over 4.0% to $48.72 billion
• Consensus was $2.87 a share on $50.66 billion in revenue

Production stood at 1.57 million barrels a day in the U.S. – up 35% versus the same quarter last year. 

Chevron spent $3.0 billion on dividends and another $3.0 billion (approximately) on stock buybacks in Q1. Still, its return on capital was down some 2.2% versus last year, as per the earnings press release.

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