(Reuters) — Oil giant Chevron Corp beat estimates for first-quarter profit on Friday as higher production volumes helped offset a hit from weak natural gas prices.
Global oil prices were largely range bound in the first three months of 2024 despite rising geopolitical tensions, as non-OPEC members kept up supplies, while a milder winter season pushed natural gas prices to record lows.
“U.S. production was up 35 percent from a year ago, and we continued to meet major project milestones,” CEO Mike Wirth said in a statement.
The higher production was due to the acquisition of PDC Energy, Inc and sustained strong execution in the Permian and Denver-Julesburg (DJ) Basins.
Net oil-equivalent production during the quarter was up 12% at 3.34 million barrels of oil equivalent per day (boepd).Late last year, Chevron offered to buy Hess Corp for $53 billion to get a foothold in oil-rich Guyana’s lucrative offshore fields.
The deal, however, has been stalled by a regulatory review and challenged by Exxon, which claims the right to Hess’s Guyana assets.
The company, which is in the process of acquiring Hess Corp in a $53 billion deal, reported adjusted earnings of $2.93 per share for the first quarter, beating analysts’ estimates of $2.87.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Anil D’Silva)
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