Chevron's quarterly profit surpasses expectations despite challenges

Chevron Corp reported a first-quarter profit that exceeded analysts' expectations, bolstered by a significant increase in production and successful operations in key oil regions. The company's net oil-equivalent production rose 12% to 3.34 million barrels of oil equivalent per day, an uptick attributed to the acquisition of PDC Energy, Inc and strong performance in the Permian and Denver-Julesburg Basins. Despite a downturn in natural gas prices, Chevron managed to post adjusted earnings of $2.93 per share, surpassing the anticipated $1.87 per share.

However, the oil giant's net income showed a decline from the previous year, dropping 16% to $5.5 billion, which equates to $2.97 per share. This fall in profit was mainly due to lower refining margins and decreased profits from international production. In the refining sector, U.S. earnings plunged by more than half to $453 million, while international refining suffered a near 60% drop in profits.

Chevron's acquisition endeavors have encountered hurdles, with its $53 billion bid to acquire Hess Corp being delayed by regulatory reviews. Furthermore, Exxon Mobil has launched a challenge over rights to Hess's assets in Guyana, introducing additional complexities to the prospective deal. Despite these challenges, Chevron remains confident in the eventual closure of the Hess acquisition and has seen a 35% boost in U.K. oil and gas production, contributing to an overall 12% increase in worldwide production.