Chevron Reports: Less Production, Higher Costs; Exploration Costs Double From Year Ago; Opportunity For Investors

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Saturday, February 1, 2014: investors are noting the opportunity to invest in Chevron.

4-year high yield: Chevron is currently yielding about 3.60%. Chevron last yielded more than 3.5% back in August 2010. Yes, not even during the 2011 October mini-crisis was Chevron yielding this much. Needless to say, Chevron has continued increasing its annual dividends through thick and thin. As a comparison, Exxon Mobil yields just 2.70%, in spite of its own recent share price depreciation.

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MarketWatch is reporting:

Chevron reported its fourth-quarter profit fell 32% to $4.93 billion, or $2.57 a share, from $7.25 billion, or $3.70 a share, a year earlier.

Operating revenue fell to $53.95 billion, down 4% from $56.25 billion a year earlier, the oil company said Friday.

Total revenue, which includes income from equity affiliates, was $56.16 billion, down from $60.55 billion.

Analysts had expected earnings of $2.58 a share on revenue of $66.41 billion, according to FactSet. Production fell to 2.58 million barrels of oil-equivalent production per day, down from 2.67 million barrels per day. Exploration expenses rose to $726 million, roughly double from a year ago. Shares in Chevron were down 0.9% in premarket trading.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or think you may have read here. 

From AP from Rigzone:

Chevron profit fell 32 percent in the fourth quarter on lower oil and gas production and lower prices for refined fuels relative to the cost of crude.

Chevron Corp. reported Friday net income of $4.93 billion on revenue of $53.95 billion for the final three months of 2013. That's down from net income of $7.25 billion on revenue of $56.25 billion during the same period of 2012.

The nation's second-biggest oil company earned $2.57 per share, a penny less than analysts polled by FactSet had expected. Chevron shares were down 3 percent to $112.93 as the market opened. Chevron had signaled that results would be relatively weak in a recent update for investors, and the company met those diminished expectations, says Brian Youngberg, an analyst at Edward Jones. He called the results "not disappointing, but more like mediocre."

Despite the U.S. oil and gas boom, Chevron's domestic production fell 4 percent in the quarter as increases in Pennsylvania and Texas were offset by declining production in older fields. Chevron's international production fell 3 percent in the quarter.

Chevron, based in San Ramon, California, has been championed by investors in recent years for providing the best growth among major integrated oil companies. But growth stalled last year and the company said Friday that production would rise less than 1 percent in 2014. Better growth is now expected in 2015 and 2016.