Chevron Posts Quarterly Decline on Falling Oil Prices

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Published April 26, 2013

| FOXBusiness

Chevron (CVX) said Friday its first-quarter earnings slipped 4.5% amid falling oil prices.

Oil and gas companies like Chevron, Exxon Mobil (XOM) and ConocoPhillips (COP) have put greater attention on oil production, as the combination of hydraulic fracturing and horizontal drilling has led to a boom in U.S. production and a decline in prices.

Chevron, the second-largest U.S. oil company behind Exxon, reported U.S. daily oil production that remained level year-over-year at 455,000 barrels a day. International production fell 2.5% to 1.3 million barrels a day.

The company reported a profit of $6.18 billion, or $3.18 on a per-share basis, beatings Wall Street’s view of $3.08 a share. Chevron had a year-ago profit of $6.47 billion, or $3.27 a share. The latest quarter included net charges of $439 million, down from $504 million.

Revenue fell 6.4% to $56.82 billion, falling short of estimates for $67.73 billion.

Operating margin fell to 18.1% from 19.9%.

Natural gas showed improved performance. The company sold nearly 10.6 billion cubic feet of gas a day in the first quarter, up 3.2%, while it said U.S. natural gas prices rose 25%.

Exploration and production earnings declined 4.1% to $5.92 billion overall, while total oil and natural gas production ticked up 0.8%.

Shares of Chevron rose 1.2% to $119.95 in late-morning trading.

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