Chevron Earnings Warning Rattles Investors
Chevron (NYSE:CVX) cautions that it foresees its Q4 earnings dipping “significantly below” Q3 levels, thanks to its downstream business just barely breaking even. The oil titan cites lower margins and refinery input volumes, as well as not having an asset sale for the downstream troubles. Chevron posts its Q4 report on Jan. 27. The bad news is plaguing shares of Exxon (NYSE:XOM), ConocoPhillips (NYSE:COP), Suncor Energy Inc. (NYSE:SU), and TOTAL S.A. (NYSE:TOT).
Today the oil company announced plans to drill 380 new oil wells this year in Indonesia, for an added 11,200 barrels per day of oil (NYSEARCA:USO) production, said Indonesia’s upstream oil and gas regulator BPMigas on Thursday. According to BPMigas official Lambok Hutauruk, local affiliate Chevron Pacific Indonesia will yield 350,000 bpd of oil in 2012, more than an existing company goal of 330,000 bpd.
Here’s how shares of Chevron are reacting to the news:
Chevron Corp. (NYSE:CVX): CVX shares recently traded at $105.23, down $2.54, or 2.36%. They have traded in a 52-week range of $86.68 to $110.99. Volume today was 8,002,694 shares versus a 3-month average volume of 9,117,700 shares. The company’s trailing P/E is 7.80, while trailing earnings are $13.50 per share.
To contact the reporter on this story: Gina Smith at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org