Record Output Boosts Chevron

US Chevron reported Q3 earnings of $4.05bn, compared with $1.95bn in Q3 2017. Included in the current quarter were a write-off, an asset impairment, and a non-recurring contractual settlement totaling $930mn upstream; and a gain of $350mn on the sale of southern Africa refining, marketing and lubricant assets.

Net production of 2.96mn barrels of oil equivalent/day represents Chevron's highest quarter ever. The ramp-up of Wheatstone in Australia and the Permian Basin in Texas and New Mexico drove a production increase of 9% over Q3 2017.

The average sales price of natural gas was $1.80/'000 ft³ in the US, unchanged from the prior year’s third quarter. Natural gas production rose by 14% to 1.06bn ft³/day.

Outside the US, upstream operations earned $2.55bn, compared with $515mn a year ago, mainly owing to higher prices and higher natural gas sales volumes.

The average sales price of natural gas was $6.73/'000 ft³, compared with $4.76/'000 ft³ in last year’s third quarter. Production increases from major capital projects, primarily the Wheatstone and Gorgon LNG projects in Australia, were partially offset by maintenance-related downtime, production entitlement effects and normal field declines. Net natural gas production outside the US increased 18% to 5.95bn ft³/day, giving a global total of 7bn ft³/day.

Foreign currency effects decreased earnings by $51mn, almost half last year's Q3 loss of $112mn. Sales and other operating revenues were $42bn, compared with $34bn in Q3 2017.