Oil producer Chevron Corp (NYSE: CVX) posted a better-than-expected quarterly profit on Friday due to cost cuts, asset sales and rising crude prices.
The San Ramon, California-based oil giant posted net income of $2.68 billion U.S., or $1.41 per share, compared to a loss of $725 million U.S., or 39 cents per share, in the year-ago period.
Excluding one-time items, Chevron earned $1.23 per share during the quarter.
By that measure, according to media reports, analysts expected earnings of 86 cents per share.
Production rose 0.4% to 2.67 million barrels of oil equivalent per day, due partly to increased production out of the Permian Basin of West Texas, something Chevron CEO John Watson told reporters was vital to the company’s future growth.
Revenues of $33.4 billion U.S. also topped analysts' expectations for $33.3 billion in sales.
Chevron's cash flow generated by its operations — a key metric in the oil and gas industry — was $3.9 billion U.S., up from $1.1 billion a year ago.
The company reduced its capital and exploration spending by about $2 billion U.S. from the first quarter of 2016.
Chevron's upstream exploration and development business improved both in the United States and internationally, helped by higher crude prices. The international segment got a boost from Chevron's $600-million U.S. sale of its geothermal business in Indonesia.
On Wednesday, Chevron announced a quarterly dividend of $1.08 U.S. a share, unchanged from the previous quarter.
Shares in Chevron strengthened $1.45, or 1.4%, to $106.92 U.S. in early trading Friday
