By Daniel Gilbert
Chevron Corp. (CVX) is scheduled to report third-quarter
earnings Friday morning, and to hold a conference call at 11 a.m.
EDT. Here's what you should know:
EARNINGS FORECAST: Net income of $2.55 a share is the consensus
of analysts surveyed by Thomson Reuters, compared with $2.57 a
share a year earlier.
REVENUE FORECAST: Revenue of $58.2 billion is forecast, compared
with $56.6 billion a year earlier.
WHAT TO WATCH:
--OIL'S BITE: More than 65% of the company's production consists
of oil and liquid fuels, making it more exposed to crude prices
than peers with output more evenly balanced between oil and gas.
Oil prices this year peaked in June and have fallen by about 25%
since; Chevron's third-quarter results are likely to reflect some
of that drop.
--HEY, BIG SPENDER: After spending a record $41.9 billion in
2013, Chevron said its capital spending would fall this year. The
company spent $19.6 billion through the first half of 2014, putting
it on target to meet its budget of $39.8 billion. But last year the
company's spending accelerated in the second half. Friday's results
will show whether Chevron has been able to keep its costs in
check.
--MAJOR PROJECTS: This is crunch time for several of Chevron's
biggest endeavors. The Jack/St. Malo project in the deep water of
the Gulf of Mexico is set to start up this year. The company is
also counting on production from another Gulf development, Big
Foot, next year. And Gorgon, the Chevron-led liquefied natural-gas
project in Australia, is also set to ship its first cargo in
2015.
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