Chevron released aninterim update on its quarterly performance after the bell on Wednesday where it noted Q4 earnings were expected to come in substantially below its stellar third quarter earnings. ?The large oil and gas company posts earnings on January 27.
Its main problems stemmed from the company��s downstream operations, where lower margins and refinery input volumes hurt the bottom line. ?Refining margins averaged $14.45 through December, while marketing margins stood at $5.39.
Refinery volumes were weak as well, with U.S. refinery input reaching 717 million barrels per day (mbd). ?Internationally, refinery output hit 792 mbd.
Upstream business was relatively solid, with U.S. net oil-equivalent production during the first two months of the quarter coming in close to its Q3 numbers: the company produced 660 million barrels of oil equivalent (mboed) through November. ?International production during the same period actually exceeded its third quarter numbers, hitting 1,979 mboed.
Chevron, like rivals Exxon Mobil, had a really strong third quarter on rising energy prices.? The two large oil giants fared better than oil service companies like Halliburton and Schlumberger during the third quarter.? Chevron, though, has already warned investors its performance won��t blow anyone out of the water.
Shares in the company had fallen 1.2% during Wednesday��s trading session to $107.77.? In after hours trade, Chevron fell a further 2% to $105.67 by 5:12 PM.
