Chevron Share Price Little Moved by Fall in Output

on Jul 11, 2013
Listen, Thursday, July 11th: US energy giant Chevron Corp (NYSE:CVX) yesterday said that its oil and gas output had fallen in the second quarter due to maintenance work and planned turnaround operations. Chevron’s share price was little changed by the announcement, closing marginally lower in New York before rising less than one percent in after-hours trading.

**Chevron’s Q2 Output**
In an interim statement for the second quarter of 2013, California-based Chevron reported that its crude oil and natural gas output fell 2.1 percent during April and May compared with the second quarter of last year.

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Chevron’s US production in the first two months of the quarter reached about 659,000 barrels of oil and natural gas a day, flat from a year ago and 0.7 percent lower as compared with the first quarter of 2013. International net oil-equivalent production fell by 71,000 barrels per day. The decline in international output was attributed to planned turnaround activity in Kazakhstan and Australia, maintenance work in Nigeria as well as to lower demand in Thailand.

Output from Chevron’s oil and gas wells accounts for approximately nine-tenths of the company’s business.
Businessweek quoted Chevron as saying that this spring the company got lower oil price while benefitting from higher prices for natural gas. The price Chevron was paid for a barrel of oil or gas liquids fell 4.5 percent in the US to $93.08 and over six percent overseas to $93.01. By contrast, prices for US natural gas soared nearly 77 percent to $3.83 from last year’s low of $2.17.

**Refining Operations**
While output declined, Chevron’s refining operations improved in the second quarter, with domestic refinery crude-input volumes rising by 183,000 barrels per day. The improvement was mostly due to the completion of planned maintenance activity at Chevron’s Pascagoula refinery in Mississippi as well as to the late-April restart of the refinery crude unit in Richmond, California, which had been shut down following a fire last August.

International refinery crude-input volumes rose by 40,000 barrels per day on account of completion of maintenance activities at Chevron refineries in Canada and South Africa.
!m[Oil Refining Operations Improve](/uploads/story/3883/thumbs/pic1_inline.png)
Chevron is scheduled to release second-quarter results on August 2. Just like in April, Reuters noted, in its most recent trading update the company gave no indication of where its quarterly earnings were headed as it had done every quarter in recent years.

As The Wall Street Journal observed, Chevron’s interim report, which is generally considered to be an earnings bellwether for the US oil and gas industry, indicated that energy producers might have been hurt by the steep drop in the oil price in April amid concerns about the global economy. Chevron is the second-largest US oil company by market value after ExxonMobil Corp.
**Chevron’s share price closed 0.30 percent lower at $122.90 in New York on 10 July 2013 but rose 0.65 percent to $123.70 in after-hours trading.**


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