Chevron releases 1Q21 results

Included in the current quarter were pension settlement costs and legal reserves totaling US$351 million. Foreign currency effects decreased earnings by US$2 million. Adjusted earnings of US$1.7 billion (US$0.90 per share - diluted) in 1Q21 compares to adjusted earnings of US$2.5 billion (US$1.31 per share - diluted) in 1Q20.

Sales and other operating revenues in 1Q21 were US$31 billion, compared to US$30 billion in the year-ago period.

Worldwide net oil-equivalent production was 3.12 million bpd in 1Q21, a decrease of 4% from a year ago.

US upstream operations earned US$941 million in 1Q21, compared with earnings of US$241 million a year earlier. The improvement primarily reflected higher crude oil and natural gas realisations.

The company’s average sales price per barrel of crude oil and natural gas liquids was US$48 in 1Q21, up from US$37 a year earlier. The average sales price of natural gas was US$2.15 per thousand cubic feet in 1Q21, up from US$0.60 in last year’s first quarter.

Net oil-equivalent production of 1.08 million bpd in 1Q21 was up 11 000 bpd from a year earlier. The increase was due to 210 000 bpd of production from the Noble Energy acquisition, partially offset by a 68 000 bpd decrease related to the Appalachian asset sale, weather effects from winter storm Uri and normal field declines. The net liquids component of oil-equivalent production in 1Q21 was essentially flat at 802 000 bpd, while net natural gas production increased 5% to 1.64 billion ft³/d compared to last year’s first quarter.

International upstream operations earned US$1.41 billion in 1Q21, compared with US$2.68 billion a year ago. The decrease in earnings was primarily due to lower sales volumes, the absence of a 2020 gain on the sale of Philippine assets, lower trading results, lower natural gas realisations and lower tax items. These decreases were partly offset by higher crude oil realisations. Foreign currency effects had an unfavourable impact on earnings of US$520 million between periods.

The average sales price for crude oil and natural gas liquids in 1Q21 was US$56 per barrel, up from US$43 a year earlier. The average sales price of natural gas was US$4.72 per thousand cubic feet in the first quarter, down from US$5.66 in last year’s first quarter.

Net oil-equivalent production of 2.05 million bpd in 1Q21 was down 6% from 1Q20. Higher production of 138 000 bpd from the Noble Energy acquisition and the resumption of production in the Partitioned Zone between Saudi Arabia and Kuwait was more than offset by asset sale-related decreases of 51 000 bpd, unfavourable entitlement effects, absence of volumes in Venezuela where the company no longer reports production, Gorgon maintenance impacts, production curtailments and normal field declines. The net liquids component of oil-equivalent production decreased 12% to 1.02 million bpd in 1Q21, while net natural gas production of 6.13 billion ft³/d increased 1%, compared to last year's first quarter.

Capital and exploratory expenditures in the first three months of 2021 were US$2.5 billion, compared with US$4.4 billion in 2020. The amounts included US$678 million in 2021 and US$1.2 billion in 2020 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 84% of the company-wide total in 2021.

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