Chevron Issues Interim Update for Second Quarter 2014

Source Company Press Release
Company Chevron Corporation
Tags Corporate: Corporate Results, Country: United States
Date July 10, 2014

Chevron Corporation (NYSE: CVX) today reported in its interim update that earnings for the second quarter 2014 are expected to be higher than first quarter 2014 as a result of gains on asset sales and an absence of impairments in the prior quarter. Foreign exchange losses in the second quarter are expected to be higher than first quarter losses. The interim update contains industry and company operating data for the first two months of the second quarter. Readers are advised that the commentary below compares results for the first two months of the second quarter 2014 to full first quarter 2014 results, unless indicated otherwise.

UPSTREAM

U.S. net oil-equivalent production was higher compared to the first quarter, primarily due to less maintenance activity in the Gulf of Mexico and increased production in the Permian Basin. International net oil-equivalent production was lower as a result of planned turnaround activity in Kazakhstan, in addition to the shutdown of the LNG facility in Angola.

    2013    2014 
2Q  3Q  4Q  1Q  2Q thru May 
U.S. Upstream             
Net Production:             
Liquids  MBD  455  448  440  438  460 
Natural Gas  MMCFD  1,227  1,242  1,261  1,212  1,229 
Total Oil-Equivalent  MBOED  659  655  650  640  665 
Average Realizations:             
Liquids  $/Bbl  92.25  97.18  89.88  91.49  92.01 
Natural Gas  $/MCF  3.78  3.23  3.35  4.77  4.11 
International Upstream             
Net Production:             
Liquids  MBD  1,258  1,279  1,286  1,275  1,248 
Natural Gas  MMCFD  3,987  3,910  3,836  4,041  3,921 
Total Oil-Equivalent  MBOED  1,923  1,930  1,926  1,948  1,901 
Average Realizations:             
Liquids  $/Bbl  93.71  104.29  100.57  98.60  100.35 
Natural Gas  $/MCF  5.93  5.88  5.75  6.02  6.00 

DOWNSTREAM

U.S. Downstream earnings for the full quarter are expected to be comparable to the prior quarter. Higher

U.S. refining margins, particularly on the West Coast, were offset by lower volumes and higher operating expenses due to significant planned turnaround activity at the El Segundo refinery. International refinery crude-input volumes increased, primarily reflecting lower maintenance activities at multiple refineries.

    2013      2014 
2Q  3Q  4Q  1Q  2Q thru May 
Volumes:  MBD           
U.S. Refinery Input    814  831  871  872  793 
Int’l Refinery Input    872  885  878  774  834 
U.S. Branded Mogas Sales    526  529  513  505  525 
Refining Market Indicators:  $/Bbl           
U.S. West Coast – Blended 5-3-2    23.46  19.76  20.11  17.73  27.00 
U.S. Gulf Coast – Maya/Mars 5-3-2    20.76  20.53  20.53  23.31  26.01 
Singapore – Dubai 3-1-1-1    8.52  5.65  4.76  7.96  7.70 
Marketing Market Indicators:  $/Bbl           
U.S. West – Weighted DTW to Spot    5.73  4.84  5.41  5.20  7.60 
U.S. East – Houston Mogas Rack to Spot  5.10  2.76  3.82  2.32  4.02 
Asia-Pacific    11.03  10.62  9.74  10.43  10.59 

ADDITIONAL ITEMS

The following table includes estimated values on an absolute basis of select items in the full quarter.

$MM  2Q 2014  Comments 
Foreign Exchange  $(250) - $(300)  Compared to absolute loss of $(79) in 1Q 2014 
Gains on Asset Sales  $500 - $600  Primarily upstream-related assets 
“ All Other” Segment Guidance  $(400) - $(500)  Per existing guidance 
Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd