Chevron (CVX) Posts 27% Drop in Profits as Crude Oil Production Lags

NEW YORK (TheStreet) -- A day after Exxon Mobil (XOMposted a drop in quarterly production levels, Chevron  (CVX) is doing likewise. The oil producer, second-largest in the U.S., earned profits 27% less than a year earlier as the company suffered lower crude oil production and declining prices over the quarter.

The company attributed the drop to "global economic factors" and also said weather-related issues in two of its oil fields in Kazakhstan led to unplanned downtime.

Over the quarter, Chevron's production fell 2% to 2.59 million barrels of oil equivalent per day (boed).

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Chevron's slip in profits caught Wall Street by surprise. Adjusted net income of $2.36 a share missed analysts' estimates by 15 cents, according to Thomson Reuters. Revenue of $51 billion slid just over 5% from the year earlier.

Earnings aren't having too much of an effect on shares Friday, though. By midday, shares had dropped 0.26% to $124.62.

TheStreet Ratings team rates CHEVRON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHEVRON CORP (CVX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

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