Chevron earnings Q1 2019
Revenues in Chevron's US upstream business jumped $ 100 million to $ 748 million, while international oil and gas production fell 12% to $ 2.38 billion.
Nevertheless, as its major oil company Exxon Mobil, the company's profits hit a lower profit margin in the downstream business, which focuses on refining oil into products such as gasoline and diesel.
Downstream profits fluctuated about 65% to $ 252 million from a year ago. In addition to weak margins, weather-related impacts on the California refineries and sales of the Cape Town refinery in South Africa have led to lower activity.
Chevron also experienced a 64% cost increase to $ 726 million, driven by higher corporate costs and interest rates, as well as foreign currency impact.
The company's turnover was $ 35.1[ads1]9 billion, a decrease of 5% from the previous year and a lack of analysts' forecast of $ 38.43 billion, according to Refinitiv.
Chevron's performance in the Permian Basin and production forecasts for the Texas-New Mexico oil field have been the focus. The company announced plans last month to double its production from the US oil pool by 2023.
The oil and gas giant struck a $ 33 billion deal earlier this month to buy Anadarko Petroleum, a diversified large shareholder drill. Occidental Petroleum launched a rival bid for Anadarko this week, possibly setting up a rare bidding war in the oil deposit.
The Anadarko Agreement supports Chevron's decision to increase its buyback program from $ 4 billion to $ 5 billion per year.
On Wednesday, Chevron announced a quarterly dividend of $ 1.19 per share, unchanged from last year, as the company increased its shareholder payout by 7 cents.