Chevron Continues Big Oil's Hot Streak [Business Week]
Summary: Chevron reported a $5 billion profit for the third quarter (+40%) from higher oil prices and increased production and sales. The entire sector benefited from Chevron's gain which was the third time this year the company reported a new high, beating estimates and raising its stocks 75 cents to $68.25 last Friday. Although oil prices have recently fallen, they were high for most of the quarter amid worries about a repeat of last year's hurricane season which caused one of the California-based oil company's main refineries to close down. Production increased by 152,000 barrels a day thanks to Chevron's acquisition of Unocal which has large reserves in the Gulf of Mexico and the Caspian Sea. Profits from refining oil and gasoline sales tripled from $573 million last year to $1.4 billion for the third quarter in 2006.
Related links: Oil: Prices and Producers -- Where They're Headed • Oil Prices Headed Back Up After the Midterm Election • Oil Inventories On the Rise: Where's the Shortage? • Chevron says California's Prop 87 could cost company $200 mln [Marketwatch] • Chevron Digs Deep [CD Decisions]
Potentially impacted stocks and ETFs: Chevron (NYSE:CVX) • Competitors: Exxon (NYSE:XOM), BP PLC (NYSE:BP) Royal Dutch Shell PLC (NYSE:RDS.A) and Marathon (NYSE:MRO)
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