Chevron -1.5% as earnings drop 32% on lower production

|About: Chevron Corporation (CVX)|By:, SA News Editor

Chevron (CVX) -1.5% premarket as Q4 earnings dropped 32% as refining margins and production fell around the world.

Operating revenue fell to $53.95B, down 4% Y/Y from $56.25B; total revenue, which includes income from equity affiliates, totaled $56.16B, down from $60.55B.

Worldwide oil and natural gas production fell 3.4% to 2.58M boe/day, down from 2.67M, as increases from project ramp-ups in the U.S. and Nigeria were more than offset by normal field declines and lower cost recovery volumes; U.S. production fell 4% as increases in Pennsylvania and Texas were offset by declining production in older fields.

E&P earnings fell 29%, hurt by lower production and a modest drop in average sales prices in the U.S.; exploration expenses rose to $726M, roughly double a year ago.

U.S. downstream operations earned $265M vs. $331M a year earlier; the decrease was due mostly to higher operating expenses reflecting repair and maintenance activity at company refineries and lower margins on refined product sales, partially offset by higher gains on asset sales.