Chevron announces 3Q20 results
Published by Nicholas Woodroof,
Included in the current quarter was a charge of US$130 million attributable to a tax item related to an international upstream end-of-contract settlement and a non-cash provision of US$90 million for remediation of a former mining asset. Foreign currency effects decreased earnings by US$188 million.
Adjusted earnings of US$201 million were recorded in 3Q20 compared to adjusted earnings of US$2.9 billion in 3Q19.
Sales and other operating revenues in 3Q20 were US$24 billion, compared to US$35 billion in the year-ago period.
“Third quarter results were down from a year ago, primarily due to lower commodity prices and margins resulting from the impact of COVID-19,” said Michael K. Wirth, Chevron’s chairman of the board and chief executive officer. “The world’s economy continues to operate below pre-pandemic levels, impacting demand for our products which are closely linked to economic activity.”
“We remain focused on what we can control – safe operations, capital discipline and cost management,” Wirth continued. “Compared to last year’s third quarter, organic capital expenditures and operating expenses were down 48% and 12%, respectively.”
“I’m proud of our employees’ continued focus on safe and reliable operations during these challenging times,” Wirth added. “Our actions are guided by our long-standing financial priorities: to protect the dividend, invest for long term value and maintain a strong balance sheet.”
Worldwide net oil-equivalent production was 2.83 million bpd in 3Q20, a decrease of 7% from a year ago. The decrease was largely a result of curtailed production in response to low commodity prices and asset sales, partially offset by net production increases at a number of properties.
US upstream operations earned US$116 million in 3Q20, compared with US$727 million a year earlier. The decrease was primarily due to lower crude oil realisations.
The company’s average sales price per barrel of crude oil and natural gas liquids was US$31 in 3Q20, down from US$47 a year earlier. The average sales price of natural gas was US$0.89/1000 ft3 in 3Q20, down from US$0.95 in last year’s third quarter.
Net oil-equivalent production of 982 000 bpd in 3Q20 was up 48 000 bpd from a year earlier. Production increases from shale and tight properties in the Permian Basin in Texas and New Mexico were partially offset by normal field declines and planned maintenance in the Gulf of Mexico. The net liquids component of oil-equivalent production in 3Q20 increased 1% to 731 000 bpd, while net natural gas production increased 21% to 1.51 billion ft3/d, compared to last year’s third quarter.
International upstream operations earned US$119 million in 3Q20, compared with US$2 billion a year ago. The decrease in earnings was primarily due to lower crude oil and natural gas realisations, lower crude oil and natural gas sales volumes, and a tax item related to an end of contract settlement, partially offset by lower depreciation and operating expenses. Foreign currency effects had an unfavourable impact on earnings of US$156 million between periods.
The average sales price for crude oil and natural gas liquids in third quarter 2020 was US$39/bbl, down from US$56 a year earlier. The average sales price of natural gas was US$3.89/1000 ft3 in the quarter, compared with US$5.62 in last year’s third quarter.
Net oil-equivalent production of 1.85 million bpd in 3Q20 decreased 247 000 bpd from 3Q19. The decrease was due to production curtailments associated with OPEC+ restrictions and market conditions combined with asset sale related decreases of 104 000 bpd. The net liquids component of oil-equivalent production decreased 12% to 976 000 bpd in 3Q20, while net natural gas production of 5.26 billion ft3/d decreased 12%, compared to last year’s third quarter.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/30102020/chevron-announces-3q20-results/
You might also like
Equinor Energy AS concludes drilling of wildcat well 34/6-6 S
The well was drilled about 10 km north of the Visund field, and about 190 km northwest of Bergen.