Chevron beat third-quarter earnings and income expectations, returning a document amount of money to shareholders.

The corporate’s shares have been up greater than 4% in morning buying and selling following the report’s launch.

The oil main’s quarterly revenue, nonetheless, declined considerably in contrast with the year-ago interval as a result of decrease margins on refined product gross sales, decrease costs and the absence of favorable tax instances.

Chevron is aiming to streamline its portfolio, with asset gross sales in Canada, Congo and Alaska anticipated to shut within the fourth quarter of 2024. The corporate can be focusing on $2 billion to $3 billion in value reductions from 2024 by the top of 2026.

Here’s what Chevron reported for the third quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG: 

• Earnings per share: $2.51 adjusted, vs. $2.43 anticipated
• Income: $50.67 billion, vs. $48.99 billion anticipated

CEO Mike Wirth stated Chevron is driving prices down on the similar time manufacturing is rising to “drive extra worth to the underside line.”

Chevron’s web earnings got here in at $4.49 billion, or $2.48 per share, down 31% from $6.53 billion, or $3.48 per share, within the third quarter of 2023. When adjusted for overseas foreign money impacts, the corporate reported earnings of $2.51 per share, solidly topping Wall Avenue’s expectations for the quarter.

Chevron booked income of $50.67 billion, additionally beating Avenue expectations however declining 6% from the $54.1 billion reported within the third quarter final 12 months.

The oil main returned a document $7.7 billion to shareholders within the quarter, together with $4.7 billion in share buybacks and $2.9 billion in dividends.

Chevron produced 3.36 million oil-equivalent barrels per day within the quarter, a 7% enhance over the third quarter of 2023, pushed by document output within the Permian Basin.

“Manufacturing was our highest third quarter ever within the historical past of the corporate,” Wirth instructed CNBC’s “Squawk on the Avenue” on Friday.

Chevron’s inventory is essentially flat for the 12 months, underperforming the S&P 500 power sector which has gained greater than 6%. The shares have struggled to realize floor as uncertainty looms over the corporate’s pending $53 billion acquisition of Hess.

The Federal Commerce Fee has cleared the deal, although it prohibited John Hess from becoming a member of Chevron’s board.

Chevron stays locked in a dispute with Exxon Mobil, which is claiming a proper of first refusal over Hess Corp.’s profitable oil belongings in Guyana. If an arbitration courtroom guidelines in Exxon’s favor, Chevron’s acquisition of Hess would fail to shut.