USA: Chevron Reports 4 Q 2010 Net Income of $5.3 bln, Up from $3.1 bln in 4 Q 2009

Chevron Corporation  today reported earnings of $5.3 billion ($2.64 per share – diluted) for the fourth quarter 2010, compared with $3.1 billion ($1.53 per share – diluted) in the 2009 fourth quarter.

Results in the 2010 period included gains of nearly $400 million from downstream asset sales. Foreign currency effects decreased earnings in the 2010 quarter by $99 million, compared with a decrease of $67 million a year earlier.

“Financially and operationally, 2010 was an outstanding year,” said Chairman and CEO John Watson. “Earnings and cash flow increased significantly in 2010 as a result of higher prices for crude oil, higher net oil-equivalent production and improved refined product sales margins. Our financial strength enabled us to invest in our attractive development projects and acquire several new resourceopportunities. At the same time, we increased the annual dividend on our common shares for the 23rd consecutive year and resumed our common stock repurchase program. From an operating perspective, safety results were world-class, net oil-equivalent production for the year came in above target, and refinery reliability was strong.”

Watson continued, “During the fourth quarter, we announced the acquisition of Atlas Energy, Inc., which will provide Chevron with an attractive natural gas position, primarily located in southwestern Pennsylvania’s Marcellus Shale. We look forward to the results from the Atlas stockholders’ meeting on February 16 and are very pleased with the talented people and assets that this acquisition will bring.”

Recent upstream achievements include:

• United States – Sanctioned development of the Big Foot project in the deepwater Gulf of Mexico. Big Foot will be the company’s sixth operated facility in the deepwater Gulf. Chevron has a 60 percent working interest in the project.

• Australia – Signed an additional binding Sales and Purchase Agreement with an Asian customer for Gorgon liquefied natural gas.

• Indonesia – Awarded front-end engineering and design contracts for the deepwater Gendalo-Gehem natural gas development in the Makassar Strait, offshore East Kalimantan.

• Kazakhstan/Russia – Reached agreement with the other shareholders and governing bodies of the Caspian Pipeline Consortium for expansion of the Caspian pipeline. The 935-mile pipeline carries crude oil from Western Kazakhstan to a dedicated terminal on the Black Sea in Russia.

• Republic of the Congo – Confirmed discoveries at the Bilondo Marine 2 and 3 wells within the Moho-Bilondo license. Chevron has a 31.5 percent interest in the permit area.

Watson commented that the company added approximately 240 million barrels of net oil-equivalent reserves in 2010. These additions, which are subject to final reviews, equate to 24 percent of net oil-equivalent production for the year. Included in the net additions is a 140 million barrel unfavorable effect of higher crude oil prices on certain production-sharing and variable-royalty contracts. Watson added, “We took several major deepwater projects to final investment decision in 2010, and we expect to recognize reserves for these projects in future years, consistent with Securities and Exchange Commission (SEC) rules.”

Chevron Corporation is an American multinational energy corporation. Headquartered in San Ramon, California, and active in more than 180 countries, it is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world’s six “supermajor” oil companies.

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Source:Chevron , January 27, 2011;