ExxonMobil Corp. turned in yet another glowing performance in the first quarter, with profit of $5.44 billion on revenue of $67.6 billion. Quarterly net income slipped 23%, which the company blamed on one-time gains, but across its oil and gas businesses, the major posted higher profits. However, in the United States and Canada, natural gas production available for sale dropped slightly from a year ago to stand at 3.06 Bcf/d, compared with 3.34 Bcf/d in 1Q2003. Exxon’s quarterly net production of crude oil and natural gas liquids in North America also was down, totaling 967 thousand bbl/d, down slightly from 980 thousand bbl/d in 1Q2003. Exxon reported quarterly profit of $5.44 billion (83 cents/share), down from $7.04 billion ($1.05) in the first quarter of 2003. Last year’s first quarter included a gain of $1.7 billion on the sale of Exxon’s stake in Ruhrgas AG, as well as a $550 million benefit from accounting changes. Excluding those items, earnings in 1Q2003 were $4.70 billion (71 cents/share). Revenue was $67.6 billion, up from $63.78 billion a year ago. Worldwide, Exxon spent nearly $12 billion for exploration and production activities in 2003. Exxon also is confident of estimates of its oil and natural gas reserves, the company said. Net income from upstream activities fell 30% in the quarter to $4.01 billion. Earnings from U.S. upstream operations dropped $105 million to stand at $1.15 billion, which the company said reflected lower production in its mature production areas.

Under pressure to rebuild investor confidence in the wake of this year’s oil and gas reserves accounting scandal, Royal Dutch/Shell Group on Thursday announced a $2 billion share buyback to be completed this year. The major also reported strong quarterly operating earnings despite a 16% decline in net income. Net income fell, said the London-based major, partly on a large credit it booked in 1Q2003. Net income was $4.43 billion, down from $5.31 billion a year ago. Revenue in the quarter was up 10% to $76.2 billion, compared with $69.4 billion a year ago. Without the inventory value and a $1.29 billion credit related to last year’s credit, Shell earned $4.25 billion in the first quarter, up 9% over last year’s $3.89 billion. Total hydrocarbon production worldwide in the quarter fell about 3%, reflecting a 3% decrease in oil production and a 4% decrease in natural gas production. In the United States, Shell’s gas production available for sale fell to 1.405 Bcf/d from 1.633 Bcf/d a year ago. Quarterly E&P spending in the United States was $276 million, down from $297 million a year earlier. U.S. gas and power spending totaled $5 million, up from $1 million in 1Q2003. Equity liquefied natural gas sales volumes in the quarter totaled 2.51 tons, an 8% increase over last year’s 2.33 tons.

London-based BP plc’s top managers expressed confidence in the oil major’s reserves numbers during the first quarter earnings conference last week, but said the company will delay “slightly” a required Securities and Exchange Commission (SEC) report in order to incorporate shareholders’ comments. BP otherwise reported a strong quarter, with a 14% increase in net income bolstered by exceptional gains from the sale of its stake in two Chinese oil companies. Net income for the first quarter was $4.82 billion (21 cents/diluted share), up slightly from $4.22 billion (19 cents) in the same period last year. Revenue rose 11% to $69.48 billion in the quarter, up from $62.43 billion in 1Q2003. Without exceptional credits, BP’s pro forma earnings, which are calculated to exclude oil inventory fluctuations, fell 6% to $3.54 billion from $3.76 billion a year earlier. Oil and natural gas production rose 11% in the first quarter to 4.02 MMboe/d, up from 3.62 MMboe/d a year ago, mostly on the coattails of a joint venture begun last year with TNK International, a major Russian oil producer. Price-wise, U.S. gas prices averaged $5.69/MMBtu (Henry Hub first of th month index), an increase of about $1.10/MMBtu versus the fourth quarter of 2003, because of seasonal weather effects, lingering supply concerns and the strength in oil prices. ChevronTexaco Corp First quarter income included litigation expenses and income from discontinued operations, which netted out to a charge of $21 million. Last year’s first quarter included a net charge of $198 million from discontinued operations, new accounting standards and losses by its former marketing partner Dynegy Inc.

Unocal Corp. reported its quarterly profit doubled, with net income of $269 million ($1/share), up from $134 million, (52 cents) in 1Q2003. Excluding special items, earnings were 89 cents/share, 9 cents higher than Wall Street estimates. However, production was off 13% compared with last year, which Unocal partially blamed on the sale of several oil and gas assets in North America. Average worldwide natural gas prices were $4/Mcf in the quarter, up from $3.90 in 1Q2003. Worldwide liquids prices were $30.64/bbl, up from $29.99 a year ago. Quarterly production averaged 409,000 boe/d, down from 471,000 boe/d for the same period of 2003. North American asset sales accounted for about 50,000 boe of the production losses, Unocal said. Worldwide price realizations (including hedging activities) for natural gas averaged $4.00/Mcf, up from $3.90/Mcf in 1Q2003. Worldwide liquids price realizations were $30.64/bbl, up from $29.99 a year ago.

Houston-based ConocoPhillips reported first quarter net income of $1.616 billion ($2.33/share), compared with $1.221 billion ($1.79/share) for the same quarter in 2003. Total revenues were $30.2 billion, versus $27.1 billion. Income from continuing operations for the first quarter was $1.603 million ($2.31/share), compared with $1.263 billion ($1.85) a year ealier. E&P segment income was $1.257 billion, up from $991 million sequentially in the fourth quarter of 2003 and slightly higher than 1Q2003’s $1.125 billion. However, daily production, including Canadian Syncrude, averaged 1.61 MMboe for the first quarter, which was flat sequentially from the fourth quarter, and slightly less than last year’s 1.63 MMboe.

Marathon Oil Corp.’s first quarter profit fell 16% from a year ago after property sales cut into oil and gas production, but the company still surpassed analysts’ forecasts by 2 cents. The Houston-based producer reported net income of $258 million (83 cents/share), compared with $307 million (99 cents) for the same period of 2003. Wall Street analysts on average expected Marathon to earn 81 cents/share. Revenue rose 4.9% to $10.7 billion. Earnings from worldwide exploration and production fell 7.2% to $478 million, and total oil and gas production was off 9.8% to 373,700 boe/d. For 2004, Marathon expects average production to fall to about 363,000 boe/d, which it attributed to asset sales. U.S. upstream income was $306 million, down from $361 million for the same period of 2003. Marathon blamed the decline on lower liquid hydrocarbon volumes that resulted from its sale of the Yates field and lower natural gas volumes and prices. Decreases were partially offset by lower exploration expense. Derivative losses totaled $17 million in first quarter 2004, compared with $46 million in first quarter 2003. Going forward, Marathon estimates its 2004 production will average 365,000 boe/d, excluding any acquisitions or asset sales. Amerada Hess

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