Chevron (NYSE:CVX) reported a drop in its fourth quarter earnings on Friday, as rising oil prices could not offset the decline in its production and sales volumes.For the three months ended December 31, the oil and gas producer posted earnings of $5.12 billion, or $2.58 per share, down over three percent from $5.3 billion, or $2.64 per share, a year ago.Analysts had expected $2.85 per share, according to FactSet.Total revenues, however, rose 11 percent to $59.99 billion, from $54.03 billion in the same period last year. During the fourth quarter, the company’s upstream business posted total net production of 2.64 million barrels of oil-equivalent (boe) per day, down over five percent from the year-ago period. US upstream production fell five percent to 661,000 boe per day, though normal field declines and maintenance-related downtime was partially offset by new production in the Marcellus Shale, and increases at Chevron’s Perdido project in the Gulf of Mexico.Production from its international upstream business also fell five percent to 1.98 million boe per day, as ramp-ups at its projects in Thailand, Nigeria, and Brazil were more than offset by maintenance-related downtime, normal field declines, and a 25,000 barrel per day negative effect from higher prices on entitlement volumes.Average sales price of crude oil and natural gas liquids (NGLs) rose nearly 33 percent to $101 per barrel. Natural gas sales price declined slightly, to $3.62 per thousand cubic feet.Chevron’s US downstream business posted refinery crude oil input of 763,000 barrels per day, down 13 percent, due to maintenance-related downtime at its Richmond Refinery. Refined product sales were down over five percent to 1.23 million barrels per day, as gasoline and fuel sales fell, mainly on weak demand.The international downstream business posted refinery crude oil input of 805,000 barrels per day, down 23 percent, mainly on the sale of Chevron’s Pembroke Refinery. Refined product sales declined 12 percent, to 1.57 million barrels per day.Chevron’s CEO John Watson commented: “In the fourth quarter, we took another important step forward in our efforts to commercialize the company’s significant natural gas resources with the start of construction at the Wheatstone liquefied natural gas project in Australia. “We also recently announced two additional natural gas discoveries in the Carnarvon Basin that will help underpin future LNG expansion opportunities. “At the same time, we ramped up production to over 330 million cubic feet per day at the Platong II natural gas project in the Gulf of Thailand.”In the downstream business, we successfully completed the second year of a multiyear plan to improve returns.”Efforts continued on streamlining the asset portfolio, with completion of the sale of refining and marketing assets in the United Kingdom and Ireland, including the Pembroke Refinery. “The company also completed the sale of its marketing businesses in five countries in Africa, and its fuels marketing and aviation businesses in 16 countries in the Caribbean and Latin America.”For the full year 2011, Chevron posted $26.9 billion, or $13.44 per share, in earnings, up 41.4 percent. Revenues rose 23.8 percent t $253.7 billion.The company said it added about 1.67 billion boe to its reserves in 2011, which are expected to nearly triple production for the year.Watson said: “The Wheatstone Project was the largest component of our reserve adds this year.”We continued to build legacy positions with additions from acquisitions in the Marcellus Shale and multiple development projects in the deepwater Gulf of Mexico.”In New York, Chevron shares fell 2.64 percent to $103.78, as of 10:04 am EDT. The company’s stock gained 17.34 percent in 2011.
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22 comments
crudeoil
January 27, 2012 at 7:36 pm (UTC 0)
It is the best of industries, it is the worst of industries.
crudeoil
January 28, 2012 at 4:18 am (UTC 0)
foreseeable future. But surely we can all agree that burning fossil fuels at the current
crudeoil
January 28, 2012 at 10:10 pm (UTC 0)
Oil will need to average about $96 a barrel for Parnell’s current budget proposal to balance, and that’s before lawmakers have had a chance to add things like capital improvement projects.
crudeoil
January 30, 2012 at 3:31 pm (UTC 0)
The terminal will therefore reduce transportation costs by a wide margin, and will result in an increased realized oil price, the Central Asia-focused oil and gas company said.
crudeoil
January 31, 2012 at 6:09 pm (UTC 0)
The company posted $9.4 billion, or $1.97 per share, in earnings for the fourth quarter of 2011, up two percent compared to $9.25 billion, or $1.85 per share, a year ago.
crudeoil
February 1, 2012 at 2:46 am (UTC 0)
Wall Street equities and oil prices felt pressure from data showing US home prices fell more than expected in November, consumer confidence soured in January and growth slowed in the Midwest in January.
crudeoil
February 1, 2012 at 6:37 am (UTC 0)
Stripped of one-time items, Suncor’s (TSX:SU) operating earnings were also $1.43 billion during the last three months of 2011, compared to $808 million, or 51 cents per share, during the fourth quarter of 2010.
crudeoil
February 3, 2012 at 11:46 pm (UTC 0)
“Sometimes the price changes multiple times in a day,” he said. “It
crudeoil
February 10, 2012 at 11:21 pm (UTC 0)
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crudeoil
February 15, 2012 at 8:38 am (UTC 0)
Trends are pointing toward average national prices for a gallon of unleaded regular fuel between $3.75 and $4.25 by summer, according to the Oil Price Information Service, which tracks daily prices across the nation.
crudeoil
February 20, 2012 at 3:11 pm (UTC 0)
Gasbuddy.com’s Patrick DeHaan told Newsradio 620 WTMJ’s “Wisconsin’s Morning News” that the Chicago region – which includes southeastern Wisconsin – is an anomaly right now.
crudeoil
February 23, 2012 at 3:23 am (UTC 0)
“Right now the market focus is on a tightening of supply, because the whole direction of these policies is to do one thing, which is to reduce Iran’s ability to export oil,” Yergin says.
crudeoil
February 23, 2012 at 8:30 pm (UTC 0)
As of the end of 2011, the company’s proved reserves base stood at 24.9 billion oil-equivalent barrels, up from 24.8 billion oil-equivalent barrels in 2010.
crudeoil
February 27, 2012 at 7:45 pm (UTC 0)
Transport Corp. will continue to operate the Ulriken vessel in a weak spot
crudeoil
February 28, 2012 at 7:32 am (UTC 0)
The energy sector felt most of the selling pressure today after experiencing strong support on the back of recent rising oil prices, CMC Markets analyst Ben Taylor said.
crudeoil
February 29, 2012 at 2:57 am (UTC 0)
NEW YORK (MarketWatch) — U.S. stocks rose Tuesday, sending the Dow Jones Industrial Average to its first close above 13,000 since May 2008, as consumer confidence hit a 12-month high and oil prices fell.
crudeoil
February 29, 2012 at 9:41 pm (UTC 0)
While dividends in the exploration and production (E&P) sector are generally
crudeoil
March 1, 2012 at 9:13 am (UTC 0)
* Dealers do not expect the rupee to rise much in the run-up to the federal budget scheduled on March 16 on worries about high inflation, slowing growth and a high fiscal deficit.
crudeoil
March 6, 2012 at 1:26 am (UTC 0)
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crudeoil
March 7, 2012 at 7:28 pm (UTC 0)
BRASILIA (Reuters) – Brazil’s state-controlled oil company Petrobras (PETR4.SA) (PBR.N) has not ruled out an increase in the price of gasoline if justified, Chief Executive Maria das Gracas Foster said on Wednesday.
crudeoil
March 15, 2012 at 4:31 pm (UTC 0)
The Reserve Bank of India said risks to inflation have increased due to a recent spurt in crude oil prices, a wide fiscal deficit and a weakening rupee.
crudeoil
March 21, 2012 at 7:07 pm (UTC 0)
The chancellor said fuel duty would not rise faster than inflation, unless oil prices were to fall below £45 a barrel, well below Crude oil’s current market price of about $125 (£79) a barrel.