Chevron Corporation (NYSE: CVX) reported on Monday, earnings of $5.1 billion ($2.58 per share – diluted) for the fourth quarter 2011, compared with $5.3 billion ($2.64 per share – diluted) in the 2010 fourth quarter.
“In the downstream business, we successfully completed the second year of a multiyear plan to improve returns”
Full-year 2011 earnings were $26.9 billion ($13.44 per share – diluted), up 41 percent from $19.0 billion ($9.48 per share – diluted) earned in 2010.
Sales and other operating revenues in the fourth quarter 2011 were $58 billion, up from $52 billion in the year-ago period, mainly due to higher prices for crude oil and refined products. “Chevron had an outstanding year financially,” said Chairman and CEO John Watson, “with record earnings and cash flow. This reflects our exceptionally strong upstream portfolio, as well as higher 2011 crude prices. Full-year earnings also benefited from improved downstream sales margins. Our financial strength enabled us to both invest in our development projects and to acquire several new resource opportunities. At the same time, we raised the annual dividend twice and increased outlays for our common stock repurchase program. Beyond our strong financial performance, we also had an outstanding year in terms of oil and gas reserves replacement.”
Watson continued, “In the fourth quarter, we took another important step forward in our efforts to commercialize the company’s significant natural gas resources with the start of construction at the Wheatstone liquefied natural gas project in Australia. We also recently announced two additional natural gas discoveries in the Carnarvon Basin that will help underpin future LNG expansion opportunities.At the same time, we ramped up production to over 330 million cubic feet per day at the Platong II natural gas project in the Gulf of Thailand.”
Watson commented that the company added approximately 1.67 billion barrels of net oil-equivalent reserves in 2011. These additions, which are subject to final reviews, equate to 171 percent of net oil-equivalent production for the year. “The Wheatstone Project was the largest component of our reserve adds this year,” noted Watson, “and we continued to build legacy positions with additions from acquisitions in the Marcellus Shale and multiple development projects in the deepwater Gulf of Mexico.” The company will provide additional details relating to 2011 reserve additions in its Annual Report on Form 10-K scheduled for filing with the SEC on February 23.
For complete details click here
