Chevron Corp. (CVX) - Get Report posted stronger-than-expected second quarter earnings Friday, following on from its larger rival Exxon Mobil (XOM) - Get Report , as oil production increases offset a decline in global crude prices.
Chevron said earnings for the three months ending in June came in at $2.27 per share, up 27.5% from the same period last year and well ahead of the Street consensus forecast of $1.78 per share, thanks in part to a $1 billion termination fee associated with Anadarko Petroleum's (APC) - Get Report merger with Occidental Petroleum (OXY) - Get Report that boosted earnings by $720 million. Group revenues, however, fell 21% from last year to $36 billion, well shy of analysts' estimates of $40.55 billion.
"Our strong financial and operational results reflect consistent execution, allowing us to pay our dividend, fund our attractive capital program, further strengthen our balance sheet and return surplus cash to our shareholders," said CEO Michael Wirth "After suspending our share repurchases while in merger discussions with Anadarko, we resumed buybacks in May and expect to be at our planned repurchase rate of $5 billion per year in the third quarter."
"We continue to high-grade our portfolio and made progress on our three-year target of $5-10 billion of asset sale proceeds," he added. "During the quarter, we executed a sales agreement for our U.K. Central North Sea upstream assets, which we expect to close later this year."
Chevron shares were marked 1.25% lower following the earnings release to change hands at $119.23 by mid-day Friday, a move that would trim the stock's year-to-date gain to around 9%.
West Texas Intermediate crude prices have fallen around 2.7% over the three months ending in June, with an average price of around $60 per barrel, according to Energy Department data. Last year, prices rose 14% and averaged around $68 per barrel.