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Chevron: Policy, Government And Public Affairs Chevron Corporation

The following excerpt is from the company's SEC filing.

P.O. Box 6078

San Ramon, CA 94583-0778

www.chevron.com

News Release

EXHIBIT 99.1

FOR RELEASE AT 5:30 AM PDT

OCTOBER 30, 2015

Chevron Reports

Third Quarter

Net Income of

Billion

Expenses down; 2016 capital spending budget sharply reduced

SAN RAMON, Calif.,

Chevron Corporation (NYSE: CVX) today reported earnings of

$2.0 billion

per share – diluted) for

third quarter

, compared with earnings of

$5.6 billion

per share – diluted) in the

. Foreign c urrency effects increased earnings in the 2015 quarter by

$394 million

, compared with an increase of

$366 million

a year earlier.

Sales and other operating revenues in

were

$33 billion

, compared to

$52 billion

in the year-ago period.

Earnings Summary

Three Months

Ended Sept. 30

Nine Months

Millions of dollars

Earnings by Business Segment

Upstream

$4,649

$(600)

$14,220

Downstream

All Other

(1,268)

Total

(1)(2)

$2,037

$5,593

$5,175

$15,770

Includes foreign currency effects

Net income attributable to Chevron Corporation (See Attachment 1)

“Third quarter earnings were down substantially from a year ago,” said Chairman and CEO John Watson. “While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability. We are focused on improving results by changing outcomes within our control. Operating and administrative expenses are 7 percent lower than last year, and we expect further reductions in the quarters ahead.”

“We expect capital and exploratory expenditures for 2016 to be $25-28 billion, roughly 25 percent lower than this year’s budget,” Watson continued. “We expect further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6-7,000."

- MORE -

“We continue to make good progress on our asset sales program,” Watson continued. “In the last two years we’ve generated $11 billion in proceeds. We expect $5-10 billion in additional proceeds by the end of 2017.”

Recent company milestones include:

Australia

- Continued to progress commissioning activities in preparation for start-up of Train 1 of the Gorgon Project. The Jansz-Io Field subsea infrastructure is fully complete. The first two wells have been opened to the Jansz pipeline, confirming the full operability of these subsea systems. All Train 2 modules are set on foundations and construction is progressing on critical path activities. Nine of 13 Train 3 modules have been delivered to site and set on foundations.

- Continued progress on construction of the Wheatstone Project. All subsea equipment and flowlines are installed and offshore platform hook-up and commissioning is progressing on plan. Seventeen of 24 Train 1 process modules required for first LNG have been delivered to site.

United States

- Announced a successful appraisal well at the Anchor prospect in the deepwater Gulf of Mexico.

UPSTREAM

Worldwide net oil-equivalent production was 2.54 million barrels per day in third quarter 2015, down from 2.57 million barrels per day in the 2014 third quarter. Production increases from project ramp-ups in the United States and Bangladesh, and production entitlement effects in several locations, were more than offset by the Partitioned Zone shut-in, normal field declines, the effect of asset sales and higher planned maintenance-related downtime at Tengizchevroil in Kazakhstan.

U.S. Upstream

Millions of Dollars

$(603)

$(2,101)

$2,895

U.S. upstream operations incurred a loss of $603 million in third quarter 2015 compared to earnings of $929 million from a year earlier. The decrease was due to sharply lower crude oil realizations, higher depreciation expenses and the absence of gains on asset sales. Partially offsetting these effects were higher crude oil production and lower operating expenses.

The company’s average sales price per barrel of crude oil and natural gas liquids was $42 in third quarter 2015, down from $87 a year ago. The average sales price of natural gas was $1.96 per thousand cubic feet, compared with $3.46 in last year’s third quarter.

Net oil-equivalent production of 730,000 barrels per day in third quarter 2015 was up 53,000 barrels per day, or 8 percent, from a year earlier. Production increases due to project ramp-ups in the Gulf of Mexico, the Permian Basin in Texas and New Mexico, and the Marcellus Shale in western Pennsylvania were only partially offset by normal field declines and the effect of asset sales.

The net liquids component of oil-equivalent production increased 9 percent in the 2015 third quarter to 505,000 barrels per day, while net natural gas production increased 6 percent to 1.35 billion cubic feet per day.

International Upstream

Earnings*

$3,720

$1,501

$11,325

*Includes foreign currency effects

International upstream earned $662 million in third quarter 2015 compared to earnings of $3.72 billion from a year earlier. The decrease was due to...


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