Record full-year earnings for Chevron

OIL and gas giant Chevron has reported earnings of US$5.1 billion for the fourth quarter 2011, compared withUS$5.3 billion in the 2010 fourth quarter. In a media release, the company outlined that full-year 2011 earnings were US$26.9 billion, up 41 per cent from the US$19 billion earned in 2010.
In also stated that sales and other operating revenues in the fourth quarter were US$58 billion, up from US$52 billion in the previous year’s corresponding period. According to the company, this was mainly due to higher prices for crude oil and refined products. “Chevron had an outstanding year financially with record earnings and cash flow,” Chevron chief executive officer John Watson said in the release. “This reflects our exceptionally strong upstream portfolio as well as higher 2011 crude prices. Full-year earnings also benefited from improved downstream sales margins. “Our financial strength enabled us to both invest in our development projects and to acquire several new resource opportunities. At the same time, we raised the annual dividend twice and increased outlays for our common stock repurchase program.
“Beyond our strong financial performance, we also had an outstanding year in terms of oil and gas reserves replacement,” Mr Watson said. He added that in the fourth quarter 2011, Chevron had also taken another important step forward in its efforts to commercialise the company’s significant natural gas
resources with the start of construction at the Wheatstone LNG project near Onslow in WA. “We also recently announced two additional natural gas discoveries in the Carnarvon Basin [WA] that will help underpin future LNG expansion opportunities. At the same time, we ramped up production to over 330 million cubic feet per day at the Platong II natural gas project in the Gulf of Thailand.” In the media release, Mr Watson said that the company had added about 1.67 billion barrels of net oil-equivalent reserves in 2011. These additions, which were subject to final reviews, equated to 171 per cent of netoil-equivalent production for the year. “The Wheatstone project was the largest component of our reserve adds this year…and we continued to build legacy positions with additions from acquisitions in the Marcellus Shale and multiple development projects in the deepwater Gulf of Mexico,” he said.

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