Chevron reported a 36% decline in third-quarter earnings as lower oil and natural gas prices offset an increase in production. Chevron earned $2.6 billion in the third quarter, down from $4 billion a year earlier. Both EPS and revenue missed the Street's expectations.
Chevron said that the average sale price per barrel of crude oil and natural gas liquids was $47 in the third quarter, which is 24% lower than the $62 average price per barrel a year earlier. The average price of natural gas fell 47% to 95 cents
Here's how the energy giant's results fared relative to Wall Street expectations:
"Third quarter earnings and cash flow were solid, but down from our very strong results of a year ago," said Michael Wirth, Chevron's chairman of the board and chief executive officer. "Lower crude oil and natural gas prices more than offset a 3 percent increase in net oil-equivalent production from last year's third quarter."
Oil-equivalent production reached 3.03 million barrels per day, which was a 3% increase from a year earlier.
Included in earnings was a $430 million charge related to cash repatriation.
In the same quarter a year earlier Chevron reported earnings of $2.11 and $43.99 billion in revenue. Last quarter Chevron's profit rose 26.3% as the company increased oil and gas production.
Falling oil prices, oversupply concerns and high production costs are among the factors that have hit the energy sector hard. It's also especially vulnerable to any signs of a global growth slowdown.
Exxon also reported third quarter results on Friday, posting a 49% decline year-over-year. The results, however, did slightly top Wall Street expectations and shares gained 3% on Friday.