Chevron Q2

How sweet it is!

“San Ramon, Calif., July 29, 2022 – Chevron Corporation (NYSE: CVX) today reported earnings of $11.6 billion ($5.95 per share - diluted) for second quarter 2022, compared with $3.1 billion ($1.60 per share - diluted) in second quarter 2021. Included in the current quarter were charges associated with an early contract termination of $600 million, pension settlement costs of $11 million, and a gain on asset sales of $200 million. Foreign currency effects increased earnings by $668 million. Adjusted earnings of $11.4 billion ($5.82 per share - diluted) in second quarter 2022 compares to adjusted earnings of $3.3 billion ($1.71 per share - diluted) in second quarter 2021.
Sales and other operating revenues in second quarter 2022 were $65 billion, compared to $36 billion in the year-ago period.”

https://chevroncorp.gcs-web.com/static-files/65758b87-400c-4…

Mr Market likes Oxy a bit more, too.
With the shares at $65, the warrants are in the money by $450m.
Isn’t it annoying that Berkshire is so big these days that even half a billion is hardly worth mentioning?


As an aside, I think that’s likely the main reason for the preponderance OT posts.
As time goes on, more and more of Berkshire’s units and holdings are really too small to spend a lot of time obsessing over.
Who cares how Pampered Chef or See’s is doing, other than perhaps as interesting case studies in economics?
If a discussion isn’t about the railroad or Apple, the only units accounting for more than 12% of total value, why waste time?

A billion here, a billion there, and you still aren’t talking real money.
Market cap is up $16bn so far today, and nobody mentions it.

Jim

17 Likes

<<As time goes on, more and more of Berkshire’s units and holdings are really too small to spend a lot of time obsessing over.
Who cares how Pampered Chef or See’s is doing, other than perhaps as interesting case studies in economics?
If a discussion isn’t about the railroad or Apple, the only units accounting for more than 12% of total value, why waste time?>>

There was a time when it seemed that any discussion of Berkshire also included
a mention of Flight Safety. Now I cannot remember the last time I heard
Flight Safety’s business or results discussed.

Gobs and gobs of cash coming in every which way I guess there are worse
problems to have.

1 Like

There was a time when it seemed that any discussion of Berkshire also included
a mention of Flight Safety. Now I cannot remember the last time I heard
Flight Safety’s business or results discussed.

Last I tried to estimate it, Netjets including Flight Safety came in at 0.7% of the value of a share.
Nice, but…whatever.

The quite surprising thing is that the long tail of very small businesses is quite material, in aggregate.
It’s a very unusual distribution of business sizes, not the sort of power law (Zipf) distribution you’d expect.
Maybe this is because Berkshire is willing to buy a really good business at less than elephant size, and they are more common at the smaller scales?
A while ago I estimated that the operating subs, ranks 11 and lower, were in aggregate accounting for a remarkable 6.9% of the total value of the company (!).
That’s more than my estimate for BHE which was done at the same time.
https://discussion.fool.com/where-the-value-lies-34521730.aspx

Jim

8 Likes

Need an acquisition like Mars or some other large private enterprise.

One can dream.

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Need an acquisition like Mars or some other large private enterprise.

Hershey would also be nice, if the trust could ever be convinced.

Koch would be ideal. Huge, private.
Not just for the money, but just think how much better the world might be with different bosses : )

Jim

33 Likes

"Not just for the money, but just think how much better the world might be with different bosses : ) "

for certain

Hershey would be ideal. I just think there is almost no chance of the Trust agreeing. I went on a tour of the Hershey School for the kids that needed it when I was young. Pretty impressive.

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Market cap is up $16bn so far today, and nobody mentions it.

It’s not for lack of excitement, I’m just afraid to jinx it. It doesn’t seem to be driven by anything in particular. Although BRK.B isn’t back to $320, my portfolio is back to its January high. I pivoted a good portion of my Berkshire shares to $300 calls a month ago, and those are up about 50%.

1 Like

“I pivoted a good portion of my Berkshire shares to $300 calls a month ago, and those are up about 50%.”

Very Nice! Fortunate timing here as well- my $240 calls (Jan. 2024) are up 25% in 2 weeks. Wish I had Jim’s experience, judgement and consistency but a good start for an amateur.

Market cap is up $16bn so far today, and nobody mentions it.

because no one mentioned market cap going down by $200B (from ~$800B to ~$600B) in last few months.

8 Likes

Dollar cost average!