Chevron Q2 profit tops estimates on higher oil, gas prices

The Chevron logo is displayed at a Chevron gas station in Greenbrae, Calif.
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The Chevron logo is displayed at a Chevron gas station in Greenbrae, Calif.

Chevron, the second-largest U.S. oil company, reported better-than-expected quarterly profit on Friday as higher energy prices offset rising expenses and production dips in Kazakhstan.

Chevron's reliance on higher crude oil and natural gas prices to boost results, even as production falls, mirrored results from rival ExxonMobil on Thursday, and underlined Wall Street's concerns that international energy giants were not replenishing reserves fast enough.

Chevron said net income rose to $5.67 billion, or $2.98 per share, in the second quarter, from $5.37 billion, or $2.77 per share, in the year-ago period.

Analysts expected earnings of $2.66 per share, according to Thomson Reuters I/B/E/S.

Production fell 1.4 percent to 2.5 million barrels of oil equivalent per day.

Chevron is currently funding five major expansion projects it hopes will boost production by 20 percent by 2017.

In a press release announcing the earnings, Chevron made no mention of Apache's decision on Thursday to pull out of two liquefied natural gas (LNG) joint ventures. Chevron had said it would broadly discuss its LNG projects on an earnings conference call set for 11 a.m. ET on Friday.

Shares of Chevron rose 0.6 percent to $130.06 in premarket trading. (Click here to get the latest quote.)

Analysts expect to report earnings of $2.66 a share on $59.3 billion in revenue, according to a consensus estimate from Thomson Reuters.