Chevron Corp. (NYSE: CVX) reported third quarter earnings today (Friday) that reflected the effect of lower oil and natural gas prices - but those prices will change in the aftermath of Hurricane Sandy.
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Chevron's Q3 earnings showed revenue of $56 billion compared to $61 billion in the third quarter of 2011. Net earnings fell to $5.3 billion ($2.69 per fully diluted share) compared to $7.8 billion ($3.92 per fully diluted share) over the same period. Revenue and earnings both came in below average analyst expectations.
Chevron management blamed the decline on lower crude oil and natural gas prices in the U.S., lower international crude oil prices and on lower production due to depletion, planned maintenance and weather-related shut-ins.
Chevron (NYSE: CVX) EarningsLower prices were the biggest factors on Chevron's Q3 earnings.
"This quarter's earnings were solid, but off from their near record level of a year ago," said Chairman and CEO John Watson. "Crude oil prices were down and we had a heavy period of planned oil field maintenance which temporarily reduced oil and gas production in several locations. Foreign currency movements also hurt our results this quarter, while they benefited the year-ago period."
Chevron's international upstream operations reported an average crude oil price of $98 per barrel in the third quarter of 2012 compared to $103 per barrel a year earlier. Natural gas prices rose from $5.50 per thousand cubic feet in the third quarter of 2011 to $6.03 per thousand cubic feet this year.
Downstream operations were affected by lower volume due, in part, to a fire at Chevron's San Francisco area refinery, and lower marketing margins on refined products.
Share prices for most major oil companies are weaker in New York Friday, partly in reaction to Chevron's earnings miss and partly due to a 2% decline in the price of crude oil on NYMEX.