Revenue Swells at Chevron

Also, the oil giant's first-quarter earnings top estimates by 2 cents.
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Oil major

Chevron

(CVX) - Get Report

said its first-quarter earnings surpassed Wall Street's estimates, while revenue surged 32% from a year ago, thanks to higher prices for crude, natural gas and refined products, and the inclusion of the operations acquired from Unocal.

Chevron earned nearly $4 billion in the quarter. Earnings per share of $1.80 topped the consensus expectation by 2 cents, according to Thomson Financial. The company made $2.68 billion, or $1.28 a share, in the year-ago quarter.

Revenue rose to $54.62 billion from $41.61 billion last year. Following the report, shares of Chevron added 12 cents to $60.10 in premarket trading Friday.

"Higher earnings in the first quarter were primarily driven by the performance of our upstream business," said Chairman and CEO Dave O'Reilly. "Prices for crude oil and natural gas were strong during the period, and oil-equivalent production increased nearly 10% from a year ago as a result of the Unocal acquisition last August."

Net income in the most recent first quarter was reduced by an estimated $300 million because of the lingering effects of last year's hurricanes in the Gulf of Mexico. The production that's still off line in the Gulf continues to be restored, Chevron said.

Worldwide oil-equivalent production totaled 2.64 million barrels a day in the first quarter, including volumes produced from Canadian oil sands and production under an operating service agreement in Venezuela.