Business & Economy

Chevron's profits up 43 percent

A Chevron service station July 9, 2009 in San Rafael, California.
A Chevron service station July 9, 2009 in San Rafael, California.
Justin Sullivan/Getty Images

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Chevron reported higher earnings in the second quarter. The oil giant kept in pace with its major competitors.

Chevron’s profit jumped 43 percent from early April to late June, keeping in line with Exxon Mobil and Royal Dutch Shell. Chevron’s oil production actually declined in the second quarter, but the producer benefited from higher oil and gasoline prices.

The California-based company reported earnings of $7.7 billion, which sent shares up nearly 20 cents higher than analysts expected. A year ago, the company earned $5.41 billion.

Chevron said U.S. oil prices increased 46 percent in the U.S. and 51 percent internationally from April to June. Natural gas prices increased 8 percent in the U.S. and 25 percent internationally.

The higher prices boosted revenue even as production declined. Chevron, like many of its oil industry peers, has struggled to extract more oil. The company produced 2.69 million barrels per day in the quarter, down from 2.75 million barrels per day in the same part of last year.

It wasn't for a lack of trying. The company plowed a whopping $7.5 billion into oil exploration and production projects in the quarter, up 69 percent increase from a year ago. It ramped up oil and natural gas production from new projects in Canada and the U.S., and it acquired Atlas Energy Inc.

The Associated Press contributed to this story