In an interim report, Chevron Corp. said its 2Q2007 results will gain on higher upstream commodity prices, stronger refining margins and the sale of its interest in Dynegy Inc. Partially offsetting earnings will be net charges related to debt redemption and other corporate items.

Based on data from the first two months of 2Q2007 (April and May), Chevron said U.S. oil-equivalent production increased an estimated 1% sequentially from 1Q2007. The San Ramon, CA-based major said its oil-equivalent growth follows restoration of Gulf of Mexico volumes following third-party pipeline disruptions. However, the higher output was partially offset by scheduled maintenance and other downtime.

U.S. oil-equivalent production reached 755,000 boe/d in the first two months of the quarter, compared with 768,000 boe/d for the entire 2Q2006. U.S. natural gas output reached 1,714 MMcf/d in the first two months of the quarter, compared with 1,832 MMcf/d for the three months of 2Q2006.

For the entire 2Q2007, Chevron said U.S. natural gas realizations were up 16 cents/Mcf, but bidweek pricing was mixed, with Henry Hub increasing and Rocky Mountain prices down. Henry Hub gas prices averaged $7.56/Mcf for the entire 2Q2007, compared with $6.81 in 2Q2006. Rocky Mountain gas prices averaged $3.72/Mcf for the entire quarter, down from $5.26 in 2Q2006.

Chevron is scheduled to report its quarterly results on July 27.

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