Chevron Reports Higher Profit on Higher Oil Prices (CVX)

Oil and gas major Chevron Corporation (NYSE: CVX), today, reported that its third-quarter profit doubled on higher oil price even though production fell.

San Ramon, California-based Chevron reported third-quarter profit of $7.8 billion, or $3.92 per share, compared with $3.8 billion, or $1.87 per share reported for the same period in the previous year. The company’s revenue for the third quarter came in at $64.4 billion, compared with $49.7 billion reported for the same period in the previous year.

Analysts were expecting the company to report a profit of $3.47 per share and revenue of $70.4 billion.

Chevron’s third-quarter results were boosted by higher oil prices. In the third quarter, crude oil prices jumped to $97 per barrel from $69 per barrel in the third quarter of 2010. The company also benefited from higher average sales price of natural gas. Average sales price of natural gas during the third quarter was $4.14 per thousand cubic feet.

However, Chevron’s global net oil-equivalent production fell in the third quarter of 2011. The company’s production dropped from 2.74 million barrels per day in the third quarter of 2010 to 2.6 million barrels per day in the third quarter of 2011. Analysts were expecting the company to report production of 2.69 barrels per day.

Chevron said that production increases from project ramp-ups in Canada, the U.S. and Brazil and new volumes stemming from the acquisition of Atlas Energy Inc. were more than offset by maintenance-related downtime and normal field declines.

Chevron shares rose marginally in trading today, following the release of third-quarter financial results. The stock ended the day 0.61% higher at $109.64 after touching an intra-day high of $109.99.

Chevron shares have outperformed the broad market this year, gaining 19.69%, compared with a gain of 2.16% for the S&P 500.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.