Chevron Boosts Q2 Output, Profits
US Chevron earned $1.5bn in the second quarter this year, compared with a loss of $1.5bn in the second quarter of 2016. Operating expenses were down 10%, gas and liquids output was up 10% at 2.78mn barrels of oil equivalent/day, and the average Brent crude price was similarly higher. Over the first half, capital expense was down by a quarter on H1 2016.
Included in the quarter were impairments and other non-cash charges totalling $430mn, partly offset by gains on asset sales of $160mn.
Sales and other operating revenues in second quarter 2017 were $33bn, compared with $28bn in the year-ago period, the major reported July 28.
CEO John Watson said: “We’re delivering higher production with lower capital and operating expenditures... Our Gorgon LNG Project in Australia closed the quarter running above nameplate capacity and we had record production from our shale and tight resource in the Permian Basin. First production from the Wheatstone LNG Project is expected next month.”
Production increases were noted from major capital projects, base business, and shale and tight properties, and lower maintenance-related downtime. These impacts were partially offset by normal field declines, production entitlement effects in several locations and the effect of 2016 asset sales.
US upstream operations lost $102mn in Q2 compared with a loss of $1.11bn from a year earlier. The improvement reflected lower impairment charges, higher crude oil and natural gas realisations, higher gains on asset sales, and lower operating expenses.
The average US sales price was $41/barrel in second quarter 2017, up from $36/b a year earlier. For gas it was $2.32/’000 ft³, compared with $1.21/’000 ft³ in last year’s second quarter.
US oil-equivalent production of 701,000 boe/d in Q2 was up 19,000 b/d from a year earlier, of which oil and liquids rose 6%t to 530,000 b/d and gas fell 6% to 1.03bn ft³/d primarily as a result of 2016 asset sales.
International upstream operations earned $955mn compared with a loss of $1.35bn a year ago, thanks to lower impairment charges, partlly offset by higher depreciation expenses from increased production. The improvement also included lower tax items, better prices for liquids and gas and lower operating expenses.
The average international price for crude oil and natural gas liquids in second quarter 2017 was $45/b, up from $40 a year earlier. The average price of natural gas was $4.39/’000 ft³, compared with $3.93/’000ft. Overseas gas production rose 30% to 5.14bn ft³/d.
William Powell