(By Balaseshan) Chevron Corp. (NYSE:CVX), the second-largest oil company in the United States, reported a 6.8% decline in quarterly earnings due to a decline in oil and gas production as well as lower pricing. Though earnings exceeded Street's expectations, revenue missed consensus.
Earnings for the second quarter were $7.21 billion or $3.66 per share, down from $7.73 million or $3.85 per share last year.
Total revenue and other income fell 9.2% to $62.61 billion. Analysts had expected a profit of $3.24 per share on revenue of $68.56 billion.
Sales and other operating revenue plunged 10.3% to $59.78 billion, while income from equity affiliates increased 11.1% to $2.09 billion. Other income climbed 86.6% to $737 million.
Worldwide net oil-equivalent production declined to 2.62 million barrels per day from 2.69 million barrels per day, as normal field declines, the shut-in of the Frade Field in Brazil, maintenance-related downtime and dispositions weighted more than the production increase from project ramp-ups in Thailand, the United States and Nigeria.
The company's average sales price per barrel of crude oil and natural gas liquids fell to $97 from $104. The average sales price of natural gas was $2.17 per thousand cubic feet, down from $4.35 in last year.
Net oil-equivalent production in the United States declined 5% to 659,000 barrels per day, associated with normal field declines and an absence of volumes associated with the Cook Inlet, Alaska, asset sale in 2011. Partially offsetting this decrease was further ramp-up at the Perdido and Caesar/Tonga projects in the Gulf of Mexico.
The net liquids component of oil-equivalent production in the U.S. decreased 4% to 461,000 barrels per day, while net natural gas production in U.S. decreased 9% to 1.19 billion cubic feet per day.
Refinery crude oil input increased 53,000 barrels per day to 928,000 barrels per day. Refined product sales of 1.27 million barrels per day were essentially flat with a year ago. Branded gasoline sales rose 2% to 521,000 barrels per day.
CVX closed Thursday's regular session at $108.27. The stock has been trading between $86.68 and $112.28 for the past 52 weeks.