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Chevron Quarterly NatGas Output Higher, Earnings Expected Lower

Chevron Corp. reported Wednesday that its U.S. natural gas production rose in January and February from the year-ago period, with upstream net output hitting 664,000 boe/d, up from 637,000 boe/d.

Domestic gas output for the interim period was 1,255 MMcf/d, compared with the two-month period a year ago of 1,205 MMcf/d. Liquid output also rose year/year to 455,000 b/d from 436,000 b/d.

Earnings for 1Q2014 are expected to be lower than they were a year ago, the San Ramon, CA-based oil major said. The shortfall principally is blamed on adverse foreign exchange effects and "select asset impairments and related charges.

"Absent these impacts, first quarter 2014 earnings are expected to be comparable with the prior quarter's results."

In the upstream, 2014 output to date has been impacted by downtime, "in part due to adverse weather across multiple regions including Kazakhstan, Canada and the U.S." However, higher demand overseas and increased liquefied natural gas output in Angola served as an offset.

Average gas realizations in the two-month period were $3.11/Mcf, well below the year-ago average price of $4.70. Liquids prices were higher in January and February at $94.40/bbl, up from $91.26.

Chevron is scheduled to issue its quarterly report on May 2.

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