ChevronTexaco Corp. estimates in a fourth quarter interim report that last September’s Hurricane Ivan resulted in a net loss in production of 10%, including an 11% decline in U.S. natural gas output and a 9% loss in natural gas liquids, compared with 3Q2004 numbers. The Gulf of Mexico storm resulted in net loss of 79,000 boe/d over 3Q numbers.
According to an interim 4Q earnings report issued Thursday, the storm cost the company $174 million in damages, including $50 million damages and $125 million after-tax profits because of lost production. Total production shut ins for the quarter were 65,000 boe/d, compared with 25,000 boe/d in shut ins during 3Q2004. Asset sales are expected to account for a reduction of another 25,000 boe/d sequentially.
The comparisons were based on two months of 4Q versus full 3Q results.
Overseas, the company estimated that its oil production fell 1%, while gas production increased 10%, which resulted in a net total production increase of 19,000 boe/d, or 1%, over 3Q2004. Most of the gas output increase came from the ramp-up of Australia North West Shelf Train 4 volumes and the absence of maintenance work.
Worldwide, ChevronTexaco estimated that upstream annual earnings for the final quarter are forecast to change by about $290 million after tax for each $1/bbl change in liquids realizations. U.S. natural gas realizations increased $0.62/Mcf, roughly in line with bidweek prices.
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