Oil giant Chevron Corp beat estimates for first-quarter profit on Friday (Apr 26) as higher production volumes helped offset a hit from weak natural gas prices.

Global oil prices were largely range bound in the first three months of 2024 despite rising geopolitical tensions, as non-Opec members kept up supplies, while a milder winter season pushed natural gas prices to record lows.

“US production was up 35 per cent from a year ago, and we continued to meet major project milestones,” CEO Mike Wirth said in a statement.

The higher production was due to the acquisition of PDC Energy, and sustained strong execution in the Permian and Denver-Julesburg (DJ) Basins.

Net oil-equivalent production during the quarter was up 12 per cent at 3.34 million barrels of oil equivalent per day (boepd).

Late last year, Chevron offered to buy Hess Corp for US$53 billion to get a foothold in oil-rich Guyana’s lucrative offshore fields.

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The deal, however, has been stalled by a regulatory review and challenged by Exxon, which claims the right to Hess’s Guyana assets.

The company, which is in the process of acquiring Hess Corp in a US$53 billion deal, reported adjusted earnings of US$2.93 per share for the first quarter, beating analysts’ estimates of US$2.87. REUTERS