Analyst Note| Allen Good |
Chevron's first-quarter earnings exceeded market expectations with adjusted earnings of $6.7 billion compared with $6.5 billion a year before. A decline in upstream earnings from lower price realizations was more than offset from higher downstream earnings, thanks to stronger global refining margins, and lower corporate charges. Production fell to 2,979 thousand barrels of oil equivalent per day from 3,060 mboe/d the year before due to the Eagle Ford asset sale and contract expiration in Thailand, which offset Permian growth. Permian growth will be modest in the first half of the year, but will accelerate in the second half.