BAKU, Azerbaijan, May 8
By Leman Zeynalova - Trend:
The US-based Chevron Corporation should remain cautious in further increasing oil and gas production until a strong signal in global recovery emerges, because there is still limited mobility outside of the US due to slower vaccination efforts, Trend reports citing GlobalData, a data analytics and consulting company, headquartered in London.
Chevron Corporation reported earnings of $1.4 billion ($0.72 per share - diluted) for first quarter 2021, compared with $3.6 billion ($1.93 per share - diluted) in first quarter 2020. Included in the current quarter were pension settlement costs and legal reserves totaling $351 million.
The company is right in holding back in capital spending to boost production as its current priority remains in creating a strong balance sheet and generating free cash flow, says GlobalData.
“Chevron is also looking into new ventures related to the energy transition, but it is still uncertain how quickly the company can generate growth from these new businesses. As with other major oil and gas companies, investors are evaluating how these companies can profitably enter new energy sectors, and this will surely play a strong part in the investor sentiment and stock prices.”
Net oil-equivalent production of 1.08 million barrels per day in first quarter 2021 was up 11,000 barrels per day from a year earlier. The increase was due to 210,000 barrels per day of production from the Noble Energy acquisition, partially offset by a 68,000 barrels per day decrease related to the Appalachian asset sale, weather effects from winter storm Uri and normal field declines. The net liquids component of oil-equivalent production in first quarter 2021 was essentially flat at 802,000 barrels per day, while net natural gas production increased 5 percent to 1.64 billion cubic feet per day, compared to last year’s first quarter.
---
Follow the author on Twitter: @Lyaman_Zeyn