Chevron 2Q Production Expected to Ease

By Features Dow Jones Newswires

Chevron Corp. (CVX) expects its second-quarter production to decline slightly from the year-earlier period as lower output abroad offsets a modest increase domestically.

Continue Reading Below

The second-largest U.S. oil company in market value after Exxon Mobil Corp. (XOM) forecast second-quarter earnings would be above its first-quarter profit thanks to asset-sale gains in the latest period, and a comparison with the previous quarter which included write-downs.

The company produced 2.6 million barrels of oil and natural gas in April and May, down 0.6% from the year-earlier period.

Throughout the oil giant's interim report, Chevron compared the first two months of the second quarter with the entire quarter of the year-earlier period and all of the first quarter of 2014.

Chevron's U.S. production in the first two months of the quarter reached about 665,000 barrels of oil and natural gas a day, an increase of 0.9% from the year-earlier quarter and a 3.9% increase from the first quarter, mostly because of less maintenance activity in the Gulf of Mexico and increased production in the Permian Basin.

International production reached 1.9 million barrels a day, down 1.1% year-to-year and falling 2.4% from the first quarter, on planned turnaround activity in Kazakhstan, in addition to the shutdown of the LNG facility in Angola.

Continue Reading Below

Average realized U.S. oil prices edged down 0.3% to $92.01 a barrel in the first two months of the quarter from the year-earlier quarter, while international prices rose 7.1% to $100.35.

Average realized domestic natural-gas prices increased by 8.7% to $4.11 per thousand cubic feet in the first two months of the quarter from the year-earlier quarter. Prices outside the U.S. rose 1.2% to $6.

Chevron plans to report its second-quarter results on Aug. 1.