By Chelsey Dulaney
Chevron Corp. posted better-than-expected results in its
December quarter, as asset sales and strength in its refining
segment helped offset tumbling crude oil prices.
Chevron, the second-biggest U.S. oil company in market value
behind Exxon Mobil Corp., has been working to increase its
oil-and-gas production. But oil prices have plummeted in recent
months amid an oversupply, just as the most ambitious drive among
the world's major energy companies begins to show results. Oil
prices have crashed more than 60% since last summer. U.S. crude
prices dipped below $44 a barrel on Thursday, the lowest in almost
six years, and closed at $44.53.
Chevron announced Friday that it would pare its capital budget
by 13% this year to $35 billion to help offset the impact of low
oil prices.
Still, Chevron's profits are better insulated than most oil
producers because it also makes money from refining the fuel into
gasoline and diesel. The lower-cost crude has helped its refinery
businesses improve profit margins.
For the latest quarter, refining, marketing and chemical
operations, or downstream, earnings surged to $1.52 billion from
$390 million a year earlier.
Meanwhile, earnings from exploration and production, known as
the upstream segment, fell to $2.67 billion from $4.85 billion a
year earlier.
For the fourth quarter, Chevron said its global oil-equivalent
production for the period 2.58 million barrels a day, unchanged
from a year earlier.
Overall, Chevron reported earnings of $3.47 billion, or $1.85 a
share, down from $4.93 billion, or $2.57 a share, a year earlier.
Results included a net $570 million gain on asset sales.
Revenue fell 18% to $46.1 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.63 a share and revenue of $30.65 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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