Chevron Corporation reported earnings of $4.5 billion ($2.3 6 per share – diluted) for the first quarter 2014 , compared with $ 6.2 billion ($3. 18 per share – diluted) in the 2013 first quarter. Sales and other operating revenues in the first quarter 2014 were $51 billion, compared to $54 billion in the year – ago period.
“Our first quarter earnings were down from a year ago,” said Chairman and CEO John Watson , “Primarily due to lower prices and volumes for crude oil. Crude prices were tempered by global economic factors, while our current year production volumes were affected by weather – related, unplanned downtime, particularly in Kazakhstan.”
“We continue to advance our key development projects,” Watson added , “And we are anticipating production growth in 2015 and beyond as a result of these investments. Significant progress has been made on the construction of our Gorgon and Wheatstone projects in Australia. Our Jack/St. Malo and Big Foot projects in the Gulf of Mexico are also progressing, with first production planned for late 2014 and mid – 2015, respectively. Our financial strength continues to allow us to fund these important growth projects which are expected to support a 20 percent increase in production by 2017, and to grow shareholder distributions.”
Recent upstream milestones include:
• Argentina – Signed additional agreements to continue the development of the Loma Campana Project in the Vaca Muerta Shale and to begin exploration in the Narambuena area of the Neuquén Basin;
• Australia – Received and installed the final two Gorgon gas turbine generators. All five of the generators have now been installed in preparation for LNG plant start-up in mid-2015;
• Australia – Commenced the development well drilling campaign for the Wheatstone Project;
• Azerbaijan – Achieved first production from the Chirag Oil Project in the Caspian Sea;
• Myanmar – Announced the acquisition of offshore shallow water acreage.
“In the downstream, mechanical completion of the premium lubricants base – oil facility in Pascagoula, Mississippi, was achieved in April and ramp-up to full production is planned for mid-year. In addition, Chevron Phillips Chemical Company LLC, the company’s 50 percent-owned affiliate, announced the start of construction of its U.S. Gulf Coast Petrochemicals Project.”
The company’s Board of Directors approved a 7 percent increase in the quarterly dividend to $1. 07 per share, payable in June 2014. The company purchased $1.25 billion of its common stock in first quarter 2014 under its share repurchase program.
Upstream
Worldwide net oil-equivalent production was 2.5 9 million barrels per day in the first quarter 2014 , down from 2. 6 5 million barrels per day in the 2013 first quarter . Production increases from project ramp-ups in Nigeria, Angola and the United States were more than offset by normal field declines and weather-related, unplanned downtime, particularly in Kazakhstan.
U.S. upstream earnings of $912 million in the first quarter 2014 were down $220 million from a year earlier due to lower crude oil production and realization s and higher operating and depreciation expenses, partially offset by higher natural gas realizations .
The company’s average sales price per barrel of crude oil and natural gas liquids was $91 in the first quarter 2014, down from $94 a year ago. The average sales price of natural gas was $4.77 per thousand cubic feet, compared with $3.11 in last year’s first quarter.
Net oil-equivalent production of 640,000 barrels per day in the first quarter 2014 was down 24,000 barrels per day, or 4 percent, from a year earlier. Production increases in the Marcellus Shale in western Pennsylvania and the Delaware Basin in New Mexico were more than offset by normal field declines . The net liquids component of oil-equivalent production decreased 4 percent in the 2014 first quarter to 438,000 barrels per day, while net natural gas production decreased 3 percent to 1.2 1 billion cubic feet per day.
International Upstream
International upstream earnings of $3. 4 billion decreased $1.4 billion from the first quarter 2013 . The decrease between quarters was primarily due to lower crude oil production and realizations and higher tax, depreciation and exploration expenses. Foreign currency effects decreased earnings by $53 million in the 2014 quarter, compared with an increase of $172 million a year earlier.
The average sales price for crude oil and natural gas liquids in the first quarter 2014 was $99 per barrel, down from $102 a year earlier. The average price of natural gas was $ 6.02 per thousand cubic feet, compared with $6.07 in last year’s first quarter .
Net oil-equivalent production of 1.9 5 million barrels per day in the first quarter 2014 was down 33,000 barrels per day, or 2 percent, from a year ago. Production increases due to project ramp-ups in Nigeria and Angola were more than offset by normal field declines and weather-related, unplanned downtime, particularly in Kazakhstan. The net liquids component of oil-equivalent production decreased 2 percent to 1.2 8 million barrels per day, while net natural gas production was essentially unchanged at 4.04 billion cubic feet per day.
Press Release, May 02, 2014