UPDATE: Chevron Posts Upbeat Q3 Earnings, Revenue Drops

Chevron

reported better-than-expected earnings for the third quarter, but the company's revenue missed analysts' estimates. The San Ramon, California-based company reported quarterly earnings of $5.59 billion, or $2.95 per share, compared to $4.95 billion, or $2.57 per share, in the year-ago period. Its total revenue dropped 6.5% to $54.7 billion in the quarter, while sales and other operating revenue declined to $52 billion from $57 billion. However, analysts were expecting earnings of $2.56 per share on revenue of $58.18 billion. The company's earnings from the the upstream segment dropped 8.7% to $4.65 billion, while earnings from the downstream segment jumped to $1.39 billion from $380 million. Global production declined to 2.57 million barrels of oil equivalent per day from 2.59 million. The company's average sales price per barrel of crude oil and natural gas liquids fell to $87 in the quarter, versus $97 in the year-earlier period. In the first nine months of 2014, capital and exploratory expenditures increased to $29.0 billion, from $28.9 billion in the year-ago period. During the quarter, Chevron purchased $1.25 billion of its common stock under its share repurchase program. “Despite a decline in crude oil prices, our third quarter earnings were higher than a year ago,” said Chairman and CEO John Watson. “Overall downstream results improved, reflecting the benefits of lower feedstock costs and better refinery reliability, particularly in the U.S.” Chevron shares rose 1.19% to $118.60 in pre-market trading.