Chevron Corp.’s stock
CVX,
fell 1.4% premarket Friday, after the oil giant posted third-quarter profit that fell far short of estimates. The company said it had net income of $6.526 billion, or $3.48 a share, in the third quarter, down from $11.231 billion, or $5.81 a share, in the year-earlier period. Adjusted per-share earnings came to $3.05, well below the $3.70 FactSet consensus. Revenue fell to $51.9 billion from $63.5 billion a year ago, but was ahead of the $51.4 billion FactSet consensus. The decline in earnings was due to lower upstream realizations and lower margins on refined product sales, the company said in a statement. Revenue was weighted down by lower commodity prices. Worldwide net oil-equivalent production rose 4%, mostly due to the acquisition of PDC Energy Inc. The $6.3 billion acquisition closed in August and is expected to enhance the company’s position in the DJ and Permian Basins. On Monday, Chevron unveiled a deal to acquire Hess Corp. HES in an all-stock agreement valued at $53 billion, or $171 per share. Chevron’s stock has fallen 14% in the year to date, while the S&P 500
SPX,
has gained 7.8%.
