Chevron Issues Interim Update for Second Quarter 2014
July 10 2014 - 5:00PM
Business Wire
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
NOTICE
Chevron’s discussion of second quarter 2014 earnings with
security analysts will take place on Friday, August 1, 2014, at
8:00 a.m. PDT. A webcast of the meeting will be available in
a listen-only mode to individual investors, media, and other
interested parties on Chevron’s website at www.chevron.com under the “Investors”
section. Additional financial and operating information will
be contained in the Earnings Supplement that will be available
under “Events & Presentations” in the “Investors” section on
the website.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR''
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This interim update of Chevron Corporation contains
forward-looking statements relating to Chevron’s operations that
are based on management’s current expectations, estimates and
projections about the petroleum, chemicals and other energy-related
industries. Words such as “anticipates,” “expects,” “intends,”
“plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,”
“schedules,” “estimates,” “budgets,” “outlook” and similar
expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, many of which are beyond the company’s control and
are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in such
forward-looking statements. The reader should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this interim update. Unless legally required,
Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
marketing and chemical margins; actions of competitors or
regulators; timing of exploration expenses; timing of crude oil
liftings; the competitiveness of alternate-energy sources or
product substitutes; technological developments; the results of
operations and financial condition of equity affiliates; the
inability or failure of the company’s joint-venture partners to
fund their share of operations and development activities; the
potential failure to achieve expected net production from existing
and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of
planned projects; the potential disruption or interruption of the
company’s production or manufacturing facilities or
delivery/transportation networks due to war, accidents, political
events, civil unrest, severe weather or crude oil production quotas
that might be imposed by the Organization of Petroleum Exporting
Countries; the potential liability for remedial actions or
assessments required by existing or future environmental
regulations and litigation; significant investment or product
changes required by existing or future environmental statutes,
regulations and litigation; the potential liability resulting from
other pending or future litigation; the company’s future
acquisition or disposition of assets and gains and losses from
asset dispositions or impairments; government-mandated sales,
divestitures, recapitalizations, industry-specific taxes, changes
in fiscal terms or restrictions on scope of company operations;
foreign currency movements compared with the U.S. dollar; the
effects of changed accounting rules under generally accepted
accounting principles promulgated by rule-setting bodies; and the
factors set forth under the heading “Risk Factors” on pages 27
through 29 of the company’s 2013 Annual Report on Form 10-K. In
addition, such results could be affected by general domestic and
international economic and political conditions. Other
unpredictable or unknown factors not discussed in this interim
update could also have material adverse effects on forward-looking
statements.
Chevron CorporationJustin Higgs, 925-790-6501
Chevron (NYSE:CVX)
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