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Exxon Mobil Corporation Message Board

  • bluecheese4u bluecheese4u Jul 11, 2013 1:56 PM Flag

    Chevron expects weak second quarter as production drops

    Chevron expects weak second quarter as production drops

    Posted on July 11, 2013 at 11:15 am by Emily Pickrell

    Chevron expects a weaker second quarter performance, driven by lower oil prices and lower international oil production for the second quarter, a result of maintenance and turnaround activity, the company said in an interim update issued Wednesday evening.

    Chevron produced 2.57 million barrels per day of oil and natural gas in April and May, down from 2.62 million barrels per day for the full second quarter of 2012.

    The decline was mostly driven by drops in international production of about three percent to 1.91 million barrels per day, as maintenance work was performed in Kazakhstan, Australia and Nigeria, the company said.

    The interim report covers the first two months of the second quarter, but is considered an early indication of quarterly results for other major oil companies.

    Gulf of Mexico: Chevron strikes oil more than 6 miles below sea level

    Chevron’s refineries processed 1.61 million barrels per day, down from 1.8 million barrels per day in the second quarter of 2012. These numbers should improve with the Richmond refinery, which came back online in the end of April.

    Some analysts question whether continuing to keep its refineries is dragging down Chevron’s value.

    “Have the board of directors and management considered the possibility that the super-major business model may ultimately be the source of this undervaluation?” asked Deutsche Bank in a Thursday morning analyst’s note.

    Simmons lowered its earnings per share estimate from $2.98 per share down to $2.80 in response to the interim update, due to the updates forecast of weaker than expected international oil production, weaker contributions from its chemicals units and cuts to refining profitability expectations.

    Chevron has not invested heavily in domestic unconventional plays and has less to gain from recent higher natural domestic gas prices. It has focused instead on deepwater Gu

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