Lower domestic natural gas prices and the impact of a weak U.S. dollar pressured Chevron Corp. in 2Q2009, the company said in an interim quarterly earnings report late Thursday.
The second-largest U.S. oil company after ExxonMobil Corp. said gains in natural gas and oil sales would be “largely offset by substantial unfavorable foreign currency effects” and refining results would fall sequentially from 1Q2009. Houston-based ConocoPhillips said Tuesday it also expects to report lower quarterly earnings (see Daily GPI, July 8).
Chevron said its realized U.S. natural gas prices averaged $3.26/Mcf in the quarter, down 21% from 1Q2009 and down 67% from 2Q2008.
Worldwide oil and gas output was relatively flat in the quarter from the same period a year ago at 2.66 million boe/d, even with recent start-ups worldwide. Planned maintenance at some facilities and lower gas sales overseas offset the impact of start-ups, the company said.
Two major fields began producing in 2Q2009. Tahiti, a deepwater platform in the Gulf of Mexico, ramped up in May. Tahiti is expected to add 125,000 bbl/d of oil and 70 MMcf/d of gas before the end of 2009, Chevron said. The company in late June also started up the Frade offshore field in Brazil, which is expected to reach 30,000 boe/d later this year.
The San Ramon, CA-based producer expects to report about $100 million in write-offs in 2Q2009. The company also expects to have gains of about $150 million from the sale of marketing businesses overseas.
Chevron is scheduled to report its quarterly results on July 31.
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