Chevron Corporation has reported earnings of $2.7 billion ($1.41 per share – diluted) for first quarter 2017, compared with a loss of $725 million ($0.39 per share – diluted) in the 2016 first quarter. Included in the quarter was a gain of approximately $600 million from the sale of an upstream asset. Foreign currency effects decreased earnings in first quarter 2017 by $241 million, compared with a decrease of $319 million a year earlier.

Sales and other operating revenues in first quarter 2017 were $32 billion, compared to $23 billion in the year-ago period.

UPSTREAM

Worldwide net oil-equivalent production was 2.68 million barrels per day in first quarter 2017, compared with 2.67 million barrels per day in the 2016 first quarter. Production increases from major capital projects and base business were largely offset by production entitlement effects in several locations, normal field declines and the impact of asset sales.

U.S. Upstream

U.S. upstream operations earned $80 million in first quarter 2017, compared with a loss of $850 million from a year earlier. The increase was primarily due to higher crude oil realizations and lower depreciation and operating expenses.

The company’s average sales price per barrel of crude oil and natural gas liquids was $45 in first quarter 2017, up from $26 a year ago. The average sales price of natural gas was $2.39 per thousand cubic feet, compared with $1.32 in last year’s first quarter.

Net oil-equivalent production of 672,000 barrels per day in first quarter 2017 was down 29,000 barrels per day, or 4 percent, from a year earlier. Production increases from base business in the Gulf of Mexico, shale and tight properties in the Permian Basin in Texas and New Mexico, and the Jack/St. Malo major capital project were more than offset by the impact of asset sales of 68,000 barrels per day, and normal field declines. The net liquids component of oil-equivalent production increased 3 percent in first quarter 2017 to 504,000 barrels per day, while net natural gas production decreased 21 percent to 1.01 billion cubic feet per day.

International Upstream

International upstream operations earned $1.4 billion in first quarter 2017, compared with a loss of $609 million a year earlier. The increase was due to higher crude oil realizations, a gain of approximately $600 million from the sale of the Indonesia geothermal business, higher natural gas sale volumes and lower operating expenses, partially offset by higher depreciation expense and higher tax items. Foreign currency effects decreased earnings by $274 million in first quarter 2017, compared with a decrease of $298 million a year earlier.

The average sales price for crude oil and natural gas liquids in first quarter 2017 was $49 per barrel, up from $29 a year earlier. The average price of natural gas was $4.36 per thousand cubic feet, compared with $3.91 in last year’s first quarter.

Net oil-equivalent production of 2.00 million barrels per day in first quarter 2017 increased 39,000 barrels per day, or 2 percent, from a year ago. Production increases from major capital projects and base business were partially offset by production entitlement effects in several locations, normal field declines and the effects of civil unrest in Nigeria. The net liquids component of oil-equivalent production decreased 7 percent to 1.20 million barrels per day in first quarter 2017, while net natural gas production increased 19 percent to 4.80 billion cubic feet per day.

DOWNSTREAM

U.S. Downstream

U.S. downstream operations earned $469 million in first quarter 2017, compared with earnings of $247 million a year earlier. The increase was primarily due to the absence of a first quarter 2016 asset impairment, lower operating expenses as a result of decreased planned turnaround activity, and higher margins on refined product sales.

Refinery crude oil input in first quarter 2017 decreased 5 percent to 912,000 barrels per day from the year-ago period. Refined product sales of 1.15 million barrels per day decreased 5 percent from first quarter 2016. Branded gasoline sales of 511,000 barrels per day were essentially unchanged from the 2016 period. Both refinery crude oil input and refined product sales were down due to divestment of the Hawaii refining and marketing assets.

International Downstream

International downstream operations earned $457 million in first quarter 2017, compared with $488 million a year earlier. The decrease was primarily due to lower margins on refined product sales. Foreign currency effects decreased earnings by $46 million in first quarter 2017, compared with a decrease of $48 million a year earlier.

Refinery crude oil input of 753,000 barrels per day in first quarter 2017 decreased 42,000 barrels per day from the year-ago period, mainly due to planned turnaround activity at the company’s refinery in Cape Town, South Africa.

Refined product sales of 1.45 million barrels per day in first quarter 2017 increased 1 percent from the year-ago period due to higher gas oil and fuel oil sales, partially offset by lower gasoline sales.

 

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