The Chevron logo is displayed at a Chevron gas station.
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Chevron was rising nearly 2% in premarket trading Friday after the energy giant swung to a profit in the third quarter, benefiting from higher oil prices.
Chevron (ticker: CVX) reported third-quarter earnings of $6.1 billion, or $3.19 a share, vs. a year-earlier loss of $207 million, or 12 cents a share.
Adjusted earnings in the quarter were $2.96 a share, well above analysts’ forecasts of $2.20.
Revenue jumped nearly 83% to $44.7billion vs. Wall Street estimates of $41.2 billion.
Free cash flow in the quarter was a record $6.7 billion.
Chevron said its U.S. upstream operations earned $1.96 billion in the third quarter vs. $116 million a year earlier. The company said its average sales price per barrel of crude oil and natural gas liquids was $58 in the third quarter, a jump from $31 a year earlier. Its natural gas price averaged $3.25 per thousand cubic feet, up from 89 cents in last year’s third quarter.
West Texas Intermediate crude oil, the U.S. benchmark, was rising 0.35% to $83.10 a barrel early Friday. It traded higher than $85 a barrel earlier this week, the highest in seven years.
Read more: Why Are Natural Gas Prices High? Because Fracking Isn’t Really Profitable.
The company bought back $625 million of shares during the third quarter.
Chevron shares rose 1.99% to $115.37 in premarket trading.
Rival Exxon Mobil (XOM) is scheduled to report earnings later Friday.
Read more: Exxon Mobil Raised Its Dividend, Ensuring It Remains a ‘Dividend Aristocrat’
Write to Joe Woelfel at joseph.woelfel@barrons.com
