Why Chevron Stock Surged Today
Shares of Chevron (NYSE: CVX) jumped 8.9% on Friday after the energy giant delivered record profits fueled by higher oil and gas prices.
Conflict in Europe and Russia's moves to reduce gas shipments have resulted in widespread shortages and a sharp rise in energy prices. Chevron's average sales price per barrel of crude oil was $89 in the second quarter, up from $54 in the prior-year period. Additionally, its average sales price of natural gas rose to $6.22 per thousand cubic feet, up from $2.16.
These higher prices combined with production increases helped to drive Chevron's revenue higher by 83% year over year to $68.8 billion. Its adjusted earnings, in turn, soared 245% to $11.4 billion, or $5.82 per share. That was far above Wall Street's estimates. Analysts had expected Chevron to report adjusted per-share profits of $5.10.
Source Fool.com
