Chevrontexaco

In a first quarter interim report for 2003, ChevronTexaco Corp. (CVX) reported its U.S. oil and gas production was up 5% over the final quarter of 2002, and said U.S. upstream annual earnings may rise $50 million this year on every $0.10/Mcf rise in natural gas realizations. In the first two months, CVX noted that its gas realizations increased $1.33/Mcf. However, CVX also warned in the interim report that it expects to record a series of changes for the first quarter of between $30 million to $50 million because of asset impairment in its downstream segment globally, as well as charges of between $200 million to $225 million for its “other” segment, which includes Dynegy Inc. CVX still controls 26% of Dynegy’s shares, which have fallen dramatically in the past year. The San Ramon, CA-based major also expects first quarter pension expenses will be about $40 million higher than those in the fourth quarter of 2002, with expenses spread across all segments of the company. The fourth quarter pension expenses were not detailed by CVX, but for all of 2002, they were about $368 million, according to a CVX Form 10-K filed with the Securities and Exchange Commission. Another charge of $200 million to $250 million will be taken as CVX adjusts its accounting system to conform with new financial standards, the company said.

Chevron Canada Resources, a Canadian subsidiary of ChevronTexaco Corp., announced Tuesday that it has abandoned the Chevron et al Newburn H-23 exploratory well off the coast of Nova Scotia, but “we’re not packing our bags and leaving.”

Royal Dutch/Shell, Exxon Mobil Corp., ChevronTexaco, Burlington Resources Inc. Petrobras and Schlumberger are but a few of the 75 foreign companies that have expressed an interest in the long-term natural gas production contracts officially unveiled by Mexico’s state-run oil monopoly last week. The first agreements are expected to be offered in November, officials said (see NGI, June 17).