Chevron 1Q Production Up 7% Worldwide As Earnings Dip
Chevron Corp. reported first-quarter earnings of $2.6 billion, down from $3.6 billion in first-quarter 2018 while its worldwide net oil-equivalent production was 3.04 million b/d in the quarter, an increase of 7percent from 2.85 million b/d one year ago.
Foreign currency effects decreased earnings in this year’s first quarter by $137 million, and sales and other operating revenues in the same period were $34 billion compared to $36 billion in first-quarter 2018.
Cash flow from operations in the first 3 months totalled $5.1 billion, compared with $5.0 billion in the corresponding 2018 period. Excluding working capital effects, cash flow from operations in 2019 was $6.3 billion, compared with $7.1 billion in the corresponding 2018 period.
Capital and exploratory expenditures in the 3 three months were $4.7 billion, up from $4.4 billion in the corresponding 2018 period, including $1.5 billion in 2019 and $1.3 billion in 2018 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 89percent of the company-wide total in 2019.
“First quarter earnings declined from a year ago, largely due to lower crude oil prices and weaker downstream and chemicals margins,” said Michael Wirth, Chevron’s chairman and chief executive officer.
Upstream production volumes increased primarily in the Permian Basin and at Wheatstone in Australia, and the company continues to high-grade its portfolio, selling interests in Rosebank field in the United Kingdom, Frade field in Brazil, and the April close of its sale of upstream interests in Denmark. Announced in the quarter, too, is its definitive agreement to acquire Anadarko Petroleum Corporation.