Wires

UPDATE 1-Chevron profit falls as oil and gas prices weaken

Jennifer Hiller

(Adds details, background)

HOUSTON, Nov 1 (Reuters) - Chevron Corp reported a larger than expected 36% drop in third-quarter profit on Friday, hit by lower oil and gas prices despite an overall increase in its output.

Net income attributable to the company fell to $2.58 billion, or $1.36 per share, in the quarter, from $4.05 billion, or $2.11 per share a year earlier. Analysts had expected earnings of $1.45 cents per share.

Chevron's worldwide net oil equivalent production grew about 3% to 3.03 million barrels per day, but average sales prices fell both in the United States and internationally.

Production in the Permian Basin, the top U.S. shale field, rose 35% from the same period a year ago to 455,000 barrels of oil and gas daily, but its average U.S. liquids price was $47 per barrel, down from $62 a year ago.

"Lower crude oil and natural gas prices more than offset" production increases, Chevron Chief Executive Mike Wirth said in a statement.

Chevron shares were down 1% Friday morning in premarket trading.

Results mirrored weaker results at BP Plc and Royal Dutch Shell, which indicated they might delay dividend increases or a buyback program due to low prices. Exxon earlier on Friday reported its profits fell by nearly half from a year ago. (Reporting by Jennifer Hiller in Houston and Shariq Khan in Bengaluru Editing by Saumyadeb Chakrabarty and Steve Orlofsky)

Related Tags