Chevron Corporation (NYSE: CVX) missed revenue and earnings expectations for the third quarter of 2019. Shares were down 0.90% in premarket hours on Friday.
Total revenues fell 18% year-over-year to $36.1 billion and missed the consensus target of $38 billion.
Net income attributable to Chevron was $2.5 billion, or $1.36 per share, compared to $4 billion, or $2.11 per share, in the prior-year period. Analysts were expecting EPS of $1.45.
CEO Michael Wirth said, “Lower crude oil and natural gas prices more than offset a 3% increase in net oil-equivalent production from last year’s third quarter.”
In the Upstream division, worldwide net oil-equivalent production was 3.03 million barrels per day, up 3% from a year ago.
Earnings from the US upstream operations fell 12% to $727 million, and earnings from the international upstream operations dropped 22% to $1.98 billion year-over-year, mainly due to lower crude oil and natural gas realizations.
Earnings in the US downstream operations declined 47% year-over-year to $389 million due to higher operating expenses, and lower margins on refined product sales. Earnings from international downstream operations decreased 29% to $439 million, largely due to the absence of 2018 gains from the southern Africa asset sale.
In September, Chevron sanctioned a waterflood project in the St. Malo Field in the Gulf of Mexico. The company also acquired deepwater exploration blocks in the Mexican Gulf of Mexico and Brazil’s Campos and Santos basins, strengthening its deepwater exploration portfolio.