Chevron Sees $2.2 Billion Boost in Upstream Earnings from Iran Conflict
Chevron is expecting a significant boost to its first-quarter upstream earnings due to rising oil and gas prices. The conflict in Iran has led to a surge in prices, with Brent crude averaging $78.38 per barrel during the quarter, up 24% from the previous three months.
The company's net oil-equivalent production is expected to average 3.8 million to 3.9 million barrels per day, despite downtime at Kazakhstan's Tengizchevroil project and reduced output in parts of the Middle East.
Chevron expects a $1.6 billion to $2.2 billion increase in upstream earnings compared to the fourth quarter of last year, driven by higher oil prices. However, the company also warned that timing effects tied to hedging and accounting would weigh on first-quarter results, cutting earnings and operating cash flow excluding working capital by $2.7 billion to $3.7 billion after tax.