J.P. Morgan Reports Lofty EPS Expectations after Chevron Interim Update

In a report published Wednesday, J.P. Morgan analyst Katherine Minyard analyzed Chevron Corp

3Q13 interim update. After the market close yesterday, Chevron released their interim update and indicated that expected 3Q13 earnings will be lower than the previous quarter. Chevron's guidance reported a rough ceiling of adjusted 3Q13 EPS of $2.90 excluding F/X impact. CVX further noted that operational upstream metrics of production and realizations fell short of expectations. U.S. liquids realizations was 10% less than J.P. Morgan's estimates followed by production which was 2% lower. The analyst commented that these figures were “driven primarily by weaker US liquids volumes and lower international (oil and gas) production.” Downstream operations also took a hit this quarter. Chevron expects 3Q13 corporate changes to come in ahead of $400-500M guidance and $550M negative impact this quarter. J.P. Morgan maintains their neutral rating on CVX. Chevron 3Q13 results are scheduled for release on November 1st. CVX closed at $116.13.