Chevron Corp. reported earnings of $1.4 billion for first-quarter 2021, compared with $3.6 billion in first-quarter 2020. Included in the current quarter were pension settlement costs and legal reserves totaling $351 million. Foreign currency effects decreased earnings by $2 million. Adjusted earnings of $1.7 billion in first-quarter 2021 compares to adjusted earnings of $2.5 billion in first-quarter 2020.
Sales and other operating revenues in first-quarter 2021 were $31 billion, compared to $30 billion in the year-ago period. Cash flow from operations for the quarter was $4.2 billion, compared with $4.7 billion in 2020. Excluding working capital effects, cash flow from operations in the first 3 months of 2021 was $5.1 billion, compared with $5.8 billion in 2020.
“Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri,” said Mike Wirth, chairman and chief executive officer.
Upstream
Worldwide net oil-equivalent production was 3.12 million b/d in first-quarter 2021, a decrease of 4% from a year ago.
US upstream operations earned $941 million in first-quarter 2021, compared with earnings of $241 million a year earlier. The improvement primarily reflected higher crude oil and natural gas realizations.
Net oil-equivalent production of 1.08 million b/d in first quarter 2021 was up 11,000 b/d from a year earlier. The increase was due to 210,000 b/d of production from the Noble Energy acquisition, partially offset by a 68,000 b/d decrease related to the Appalachian asset sale, weather effects from winter storm Uri, and normal field declines. The net liquids component of oil-equivalent production in first-quarter 2021 was essentially flat at 802,000 b/d, while net natural gas production increased 5% to 1.64 bcfd, compared to last year’s first quarter.
International upstream operations earned $1.41 billion in the quarter, compared with $2.68 billion a year ago. The decrease in earnings was primarily due to lower sales volumes, the absence of a 2020 gain on the sale of Philippine assets, lower trading results, lower natural gas realizations, and lower tax items. These decreases were partly offset by higher crude oil realizations. Foreign currency effects had an unfavorable impact on earnings of $520 million between periods.
Net oil-equivalent production of 2.05 million b/d in first-quarter 2021 was down 6% from first-quarter 2020. Higher production of 138,000 b/d from the Noble Energy acquisition and the resumption of production in the Partitioned Zone between Saudi Arabia and Kuwait was more than offset by asset sale-related decreases of 51,000 b/d, unfavorable entitlement effects, absence of volumes in Venezuela where the company no longer reports production, Gorgon maintenance impacts, production curtailments, and normal field declines. The net liquids component of oil-equivalent production decreased 12% to 1.02 million b/d in first-quarter 2021, while net natural gas production of 6.13 bcfd increased 1%, compared to last year’s first quarter.
Downstream
US downstream operations reported a loss of $130 million in first-quarter 2021, compared with earnings of $450 million a year earlier. The decrease was mainly due to lower margins on refined product sales and lower sales volumes.
Refinery crude oil input in first-quarter 2021 decreased 9% to 881,000 b/d from the year-ago period, as the company reduced refinery runs in response to lower demand.
Refined product sales of 1.05 million b/d were down 9% from the year-ago period, mainly due to lower jet fuel, gasoline, and diesel demand associated with the pandemic.
International downstream operations reported earnings of $135 million in the quarter, compared with earnings of $653 million a year earlier. The decrease in earnings was largely due to lower margins on refined product sales, partially offset by lower operating expenses.
Refinery crude oil input of 536,000 b/d in first-quarter 2021 decreased 16% from the year-ago period, primarily due to the demand impacts from the pandemic.
Refined product sales of 1.27 million b/d in first-quarter 2021 were essentially unchanged from the year-ago period.
Capital and exploratory expenditures
Capital and exploratory expenditures in the first 3 months of 2021 were $2.5 billion, compared with $4.4 billion in 2020. The amounts included $678 million in 2021 and $1.2 billion in 2020 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 84% of the company-wide total in 2021.
