Chevron, the second-largest U.S. oil company, said it expects its second-quarter profit to come in ahead of its first-quarter results, helped by higher oil prices and increased production. The company is expected to report a second-quarter profit of $7.1 billion compared with $6.21 billion in the first quarter.
California-based Chevron (CVX) said it produced the equivalent of of 2.733 million barrels of oil and natural gas per day in April and May. International net oil-equivalent production declined 76,000 barrels per day, largely reflecting maintenance activity in Kazakhstan, Chevron said in a statement.
U.S. crude-oil realizations for the first two months of the second quarter increased about $18 per barrel to $111.11, and International liquids realizations improved approximately $13 to $108.46 per barrel. U.S. natural gas realizations increased $0.28 to $4.32 per thousand cubic feet, and international natural gas realizations increased $0.41 to $5.44 per thousand cubic feet, Chevron noted in the statement.
Chevron also said it expects improvement in its refining margins for the second quarter. The company, a Dow component, is scheduled to deliver its full quarterly results on July 29.