(Source: Business Wire)
Chevron Corporation (NYSE:CVX) today reported in its interim update that
earnings for the third quarter 2009 are expected to be higher than in
the second quarter 2009. Upstream earnings are projected to increase
significantly, reflecting higher prices for crude oil, as well as
approximately $400 million of gains related to asset sales and tax
items. Downstream results are expected to be relatively flat.
Unfavorable foreign currency effects are anticipated in the upstream and
downstream business segments though the U.S. dollar weakened less in the
third quarter against most major currencies than in the second quarter.
Basis for Comparison in Interim Update
The interim update contains certain industry and company operating data
for the third quarter 2009. The production volumes, realizations,
margins and certain other items in the report are based on a portion of
the quarter and are not necessarily indicative of Chevron's quarterly
results to be reported on October 30, 2009. The reader should not place
undue reliance on this data.
Unless noted otherwise, all commentary is based on two
months of the third quarter 2009 versus full
second quarter 2009 results.
UPSTREAM - EXPLORATION AND PRODUCTION
The table that follows includes information on production and price
indicators for crude oil and natural gas for specific markets. Actual
realizations may vary from indicative pricing due to quality and
location differentials and the effect of pricing lags. International
earnings are driven by actual liftings, which may differ from production
due to the timing of cargoes and other factors.
2008 2009
3Q 4Q 1Q 2Q 3Q thruAug 3Q thruSep
U.S. Upstream
Net Production:
Liquids MBD 409 399 441 467 506 n/a
Natural Gas MMCFD 1,431 1,320 1,379 1,395 1,412 n/a
Total Oil-Equivalent MBOED 647 619 671 700 741 n/a
Pricing:
Avg. WTI Spot Price $/Bbl 118.25 59.14 43.19 59.71 67.49 68.14
Avg. Midway Sunset Posted Price $/Bbl 105.54 45.07 34.44 52.69 59.55 60.06
Nat. Gas-Henry Hub "Bid Week" Avg. $/MCF 10.27 6.96 4.91 3.49 3.67 3.40
Nat. Gas-CA Border "Bid Week" Avg. $/MCF 9.34 4.97 4.01 3.00 3.32 3.10
Nat. Gas-Rocky Mountain "Bid Week" Avg. $/MCF 5.85 3.46 3.20 2.25 2.71 2.57
Average Realizations:
Crude $/Bbl 112.22 51.43 36.85 53.21 62.47 n/a
Liquids $/Bbl 107.22 49.13 36.00 50.42 59.42 n/a
Natural Gas $/MCF 8.64 5.23 4.14 3.27 3.47 n/a
International Upstream
Net Production:
Liquids MBD 1,167 1,308 1,360 1,346 1,333 n/a
Natural Gas MMCFD 3,618 3,493 3,642 3,593 3,508 n/a
Mined Bitumen MBD 26 31 25 26 29 n/a
Total Oil-Equivalent - incl. Mined Bitumen MBOED 1,796 1,921 1,992 1,970 1,946 n/a
Pricing:
Avg. Brent Spot Price (1) $/Bbl 115.09 55.48 44.46 59.13 68.54 68.15
Average Realizations:
Liquids $/Bbl 102.73 46.79 39.43 53.17 61.69 n/a
Natural Gas $/MCF 5.37 5.10 4.21 3.73 3.96 n/a
(1) The Avg. Brent Spot Price is based on Platts daily assessments, using Chevron's internal formula to produce a quarterly average.
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Compared with the average for the second quarter 2009, net U.S.
oil-equivalent production during the first two months of the third
quarter increased 41,000 barrels per day mainly due to the ramp-up of
production at Tahiti in the Gulf of Mexico.
International net oil-equivalent production decreased 24,000 barrels per
day compared with the second quarter. The liquids component of
oil-equivalent production decreased 13,000 barrels per day reflecting
disruptions to operations in Nigeria related to local civil unrest.
These effects more than offset higher volumes in Kazakhstan following
planned maintenance in the second quarter and increased production
associated with continued ramp-up at the Agbami Field offshore Nigeria.
Net natural gas production decreased 85 million cubic feet per day,
largely due to planned maintenance at North Sea fields.
U.S. crude oil realizations for the first two months of the third
quarter increased $9.26 per barrel to $62.47. International liquids
realizations increased $8.52 to $61.69 per barrel. U.S. natural gas
realizations increased $0.20 to $3.47 per thousand cubic feet and
average international natural gas realizations increased $0.23 per
thousand cubic feet to $3.96.
International upstream results are projected to include gains and
related tax effects of about $400 million connected with formal project
approval and previously announced sales of partial interests in the
Gorgon project in Australia.
DOWNSTREAM -- REFINING, MARKETING AND
TRANSPORTATION
The table that follows includes industry benchmark indicators for
refining and marketing margins.
