CVX Chevron Corporation

By Dave Sebastian

Chevron Corp. said its world-wide daily production rose 5% in the second quarter, while the average sales prices for crude oil and natural gas nearly tripled.

Refined product sales climbed 40% from a year ago, when Covid-19 lockdowns cut into demand for gasoline and jet fuel.

On upstream operations:

"Worldwide net oil-equivalent production was 3.13 million barrels per day in second quarter 2021," the energy company said.

"U.S. upstream operations earned $1.4 billion in second quarter 2021, compared with a loss of $2.1 billion a year earlier. The improvement was primarily due to higher crude oil realizations and the absence of second quarter 2020 charges for special items including impairments, write-offs and severance accruals. Higher crude oil production also contributed to the improvement between periods."

"The company's average sales price per barrel of crude oil and natural gas liquids was $54 in second quarter 2021, up from $19 a year earlier. The average sales price of natural gas was $2.16 per thousand cubic feet in second quarter 2021, up from $0.81 in last year's second quarter."

On downstream operations:

"U.S. downstream operations reported earnings of $776 million in second quarter 2021, compared with a loss of $988 million a year earlier. The increase was mainly due to higher margins on refined product sales, higher earnings from the 50 percent-owned Chevron Phillips Chemical Company, higher sales volumes, and lower operating expenses, including the absence of second quarter 2020 severance accruals."

"Refinery crude oil input in second quarter 2021 increased 65 percent to 956,000 barrels per day from the year-ago period, as the company increased refinery runs in response to higher demand and the improved refining margin environment."

"Refined product sales of 1.16 million barrels per day were up 40 percent from the year-ago period, mainly due to higher gasoline and jet fuel demand as travel restrictions associated with the COVID-19 pandemic eased."

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

July 30, 2021 08:10 ET (12:10 GMT)

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