U.S. energy behemoth
) released its first quarter 2013 interim update, covering the
first 2 months of the quarter. On the whole, the update is
bearish, with oil production expected to be significantly below
the previous quarter.
Chevron expects foreign exchange translation effect of $250-$350
million during the quarter.
The company's oil and natural gas production averaged 2.636
million oil-equivalent barrels per day, up a nominal 0.2% from
the first-quarter 2012 level. The improvement was aided by volume
increases in the U.S. Production is likely to fall 1.2%
In the first two months of the March quarter, Chevron's total
domestic oil equivalent production decreased 11,000 barrels per
day from the previous quarter levels, primarily due to increased
maintenance activity in the Gulf of Mexico. Net international oil
equivalent production - at 1,973,000 oil-equivalent barrels per
day - was 21,000 barrels per day less than the fourth quarter of
2012. The decrease was due to the timing of cost recovery volumes
and weather-related downtime.
U.S. crude price realizations during Jan-Feb 2013 averaged $94.07
per barrel, up from $90.67 in fourth quarter 2012, while
international realizations increased by $4.34 to $104.27 per
barrel. Chevron's domestic realized natural gas prices for this
period averaged $3.06 per thousand cubic feet (Mcf), compared
with $3.22 in the fourth quarter. Average international natural
gas realizations were up 6 cents per Mcf to $6.03.
Regarding downstream operations, the second-largest U.S. oil
company by market value after
Exxon Mobil Corporation
) said that its domestic. refinery crude-input fell 145,000
barrels per day, largely due to planned maintenance work at the
Pascagoula, Mississippi refinery. Refinery crude-input volumes
outside the U.S. were also down (by 61,000 barrels per day)
during the same period due to increased maintenance activity at
First quarter refining margins increased $2.90 per barrel
sequentially on the U.S. West Coast and decreased by 87 cents per
barrel on the Gulf Coast.
First Quarter Estimate
Chevron plans to release its quarterly results on Friday, Apr 26,
2013, before the opening bell. The Zacks Consensus Estimate for
Chevron's first quarter is $3.10 per share.
Chevron currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Two firms in the energy sector that are expected to significantly
outperform the equity markets in the next one to three months are
Calumet Specialty Products Partners LP
Range Resources Corporation
). Both these stocks carry a Zacks Rank #1 (Strong Buy).
CALUMET SPECLTY (CLMT): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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