Lower production, prices hurt Chevron 3Q profit

SAN RAMON, Calif. (AP) ? Chevron Corp. said Friday its third-quarter net income fell 33 percent as production declined and it sold oil and gas at lower prices.

The nation's second-largest oil company said Friday that it earned $5.25 billion, or $2.69 per share, in the July-through-September quarter. That compares with net income of $7.83 billion, or $3.92 per share, in the year-ago quarter.

Revenue fell to $55.66 billion from $61.26 billion.

The sluggish global economy has cut into demand for energy products, from gasoline and diesel to jet fuel worldwide. Concerns about economic growth have caused oil and natural gas prices to fall, which can hurt oil producers' bottom line.

Exxon Mobil Corp., the nation's biggest oil company, and ConocoPhillips also reported a drop in third-quarter net income, blaming in part lower prices.

Chevron, which is based in San Ramon, Calif., said production fell as operations were disrupted by a hurricane in the Gulf of Mexico and planned maintenance at some international facilities. Its operations remain idle off the shore of Brazil pending investigations into two oil spills. Some of the loss was made up by increased production on other properties.

Chevron's net production totaled 2.52 million barrels per day worldwide, a decrease of 3 percent from a year ago. In the U.S., Chevron's production fell 4 percent to 637,000 barrels per day, partly because it sold Alaskan assets last year.

Chevron sold oil and natural gas liquids for $91 per barrel in the U.S. during the quarter, compared with $97 per barrel a year ago. Natural gas prices averaged $2.63 per 1,000 cubic feet compared with $4.14 per 1,000 cubic feet a year ago.

Outside the U.S., the average price for oil and natural gas liquids was $98 per barrel, down from $103 per barrel a year ago. Natural gas sold for $6.03 per 1,000 cubic feet compared with $5.50 per 1,000 cubic feet.

Chevron shares fell $2.11, or 1.9 percent, to $109.35 in early trading. In the past 52 weeks, the price has ranged from $92.29 to $118.53 per share.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-11-02-US-Earns-Chevron/id-be2e2ce0002647968291b81595ae9678

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