Chevron reports Q2 (Jun) results, beats on revs (106.11)
- Reports Q2 (Jun) earnings of $0.77 per share, including impairments and other non-cash charges totaling $430 mln, partially offset by gains on asset sales of $160 mln, may not be comparable to the Capital IQ Consensus of $0.87; revenues rose 17.8% year/year to $34.48 bln vs the $32.77 bln Capital IQ Consensus
- Co said it's delivering higher production with lower capital and operating expenditures
Upstream:
- Worldwide net oil-equivalent production was 2.78 mln barrels per day in second quarter 2017, compared with 2.53 mln barrels per day from a year ago
- Production increases were noted from major capital projects, base business, and shale and tight properties, and lower maintenance-related downtime. These impacts were partially offset by normal field declines, production entitlement effects in several locations and the effect of 2016 asset sales
- U.S. upstream operations incurred a loss of $102 mln in second quarter 2017 compared with a loss of $1.11 bln from a year earlier
- The improvement reflected lower impairment charges, higher crude oil and natural gas realizations, higher gains on asset sales, and lower operating expenses
- The company's average sales price per barrel of crude oil and natural gas liquids was $41 in second quarter 2017, up from $36 a year earlier. The average sales price of natural gas was $2.32 per thousand cubic feet in second quarter 2017, compared with $1.21 in last year's second quarter
- International upstream operations earned $955 mln in second quarter 2017 compared with a loss of $1.35 bln a year ago
- The increase in earnings reflected lower impairment charges, partially offset by higher depreciation expenses from increased production. The improvement also included lower tax items, higher natural gas sales volumes, higher crude oil realizations and volumes, and lower operating expenses. Foreign currency effects decreased earnings by $4 mln in the 2017 second quarter, compared with an increase of $329 mln a year earlier. The average sales price for crude oil and natural gas liquids in second quarter 2017 was $45 per barrel, up from $40 a year earlier. The average price of natural gas was $4.39 per thousand cubic feet in the quarter, compared with $3.93 in last year's second quarter
Downstream:
- U.S. downstream operations earned $634 mln in second quarter 2017 compared with earnings of $537 mln a year earlier
- The increase in earnings was primarily due to higher margins on refined product sales and lower operating expenses. Partially offsetting these effects were the absence of second quarter 2016 asset sale gains and higher tax items
- Refinery crude oil input in second quarter 2017 decreased 3 percent from the year-ago period to 928,000 barrels per day. Refined product sales of 1.24 mln barrels per day decreased 2 percent from second quarter 2016
- International downstream operations earned $561 mln in second quarter 2017 compared with $741 mln a year earlier
- The decrease in earnings was primarily due to the absence of second quarter 2016 gains on asset sales. Higher margins on refined product sales partially offset the decrease in earnings. Foreign currency effects increased earnings by $3 mln compared with a decrease of $26 mln in last year's second quarter. Refinery crude oil input of 726,000 barrels per day in second quarter 2017 decreased 38,000 barrels per day from the year-ago period mainly due to crude unit maintenance at the Star Petroleum Refining Company in Thailand and a major planned turnaround at the company's refinery in Cape Town, South Africa