Chevron beats on profits and revenues as production and refining units improve, exploration costs fall

A Chevron gas station in Greenbrae, Calif., on May 2, 2014.

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A Chevron gas station in Greenbrae, Calif., on May 2, 2014.

Shares of Chevron fell on Friday even as the oil major beat Wall Street’s expectations on the top and bottom line and as profits and revenues jumped from a year ago.

Shares of Chevron were down more than 1 percent at $116.75 in pre-market trading.

The San Ramon, CA-based company reported earnings of $1.03 per share on revenues of $36.21 billion. Analysts had expected earnings of 98 cents a share on $34.05 billion in revenues.

In the year ago period, Chevron earned 68 cents per share on $30.1 billion in revenue.

“We continue to see improvement in the underlying pattern of earnings and cash flow,” Chevron Chairman and CEO John Watson said in a statement.

“We’re completing projects that have been under construction and ramping up production, notably at our Gorgon LNG Project in Australia. And our shale and tight rock drilling activity in the Permian Basin is exceeding expectations,” he added.

Earnings in the oil giant’s upstream segment, which explores for and produces oil and natural gas, improved slightly to $489 million. The loss in the U.S. upstream business narrowed to $26 billion from $212 million in the year-ago period.

Chevron’s refining business, which processes crude oil into fuels like gasoline, saw profits surge 70 percent from last year to $1.8 billion. The surge came from higher profit margins in the U.S. refining segment and gains from international asset sales.

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