Chevron Corp. forecasts lower production, higher earnings in Q2

Nathan Andrada – Fourth Estate Cooperative Contributor

San Ramon, CA, United States (4E) – Chevron Corp. forecasts a slight drop in its second-quarter production from the year-ago period as modest domestic gains failed to offset lower output overseas, the San Ramon, Calif.-based company said in a statement released Thursday.

The company also expects second-quarter earnings to be higher compared with the previous quarter due to gains in asset sales in the latest period, and a comparison with the prior quarter that included write-downs.

In April and May, the second-biggest U.S. oil company in terms of market value produced 2.6 million barrels of oil and natural gas, lower by 0.6 percent from the year-ago period.

Chevron’s daily domestic production in the first two months of the quarter stood at around 665,000 barrels of oil and natural gas, higher by 0.9 percent from the year-ago quarter and up by 3.9 percent from the first quarter, primarily due to less maintenance activity in the Gulf of Mexico and higher output in the Permian Basin.

Meanwhile, over half a billion dollars in asset sales helped increase earnings in the second quarter from the previous period, the company said.

Chevron’s asset sales from April to May were valued between $500mn and $600mn that included oil and natural gas wells.

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