Chevron stock surges after big profits and income, as crude and natural gas selling prices soar

Chevron Corp. CLC,
+ 0.94%
jumped 2.0% to a 22-month high in pre-market trading on Friday, after the oil and gas giant reported third-quarter earnings and revenue well above expectations as crude oil prices hit almost doubled and natural gas prices almost quadrupled. The company reached net income of $ 6.11 billion, or $ 3.19 per share, compared to a loss of $ 207 million, or 12 cents per share, during the period last year. Excluding one-time items, adjusted earnings per share fell 18 cents to $ 2.96, beating the FactSet consensus of $ 2.20. Total revenue jumped 82.9% to $ 44.71 billion, above the FactSet consensus of $ 41.22 billion. Global net oil equivalent production rose 7% to 3.03 million barrels per day. For Chevron’s upstream operations in the United States, the average selling price per barrel of crude oil and natural gas liquids climbed to $ 58 from $ 31 a year ago, while the average selling price of the natural gas climbed to $ 3.25 per thousand cubic feet from 89 cents. “Third quarter profits were the highest since the first quarter of 2013, largely due to improving market conditions, strong operational performance and a weaker cost structure,” said the director General Mike Wirth. The stock has climbed 34.0% year-to-date through Thursday, while the SPDR Energy Select Sector ETF XLE,
+ 0.71%
rose 52.6% and the Dow Jones Industrial Average DJIA,
+ 0.68%
increased by 16.7%.


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