Chevron’s stock dips premarket after profit miss

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Chevron’s stock dips premarket after profit miss
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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

Chevron Corp.’s stock CVX, -0.72% fell 1.4% premarket Friday, after the oil giant posted third-quarter profit that fell far short of estimates. The company said it had net income of $6.526 billion, or $3.48 a share, in the third quarter, down from $11.231 billion, or $5.81 a share, in the year-earlier period. Adjusted per-share earnings came to $3.05, well below the $3.70 FactSet consensus. Revenue fell to $51.9 billion from $63.5 billion a year ago, but was ahead of the $51.

The decline in earnings was due to lower upstream realizations and lower margins on refined product sales, the company said in a statement. Revenue was weighted down by lower commodity prices. Worldwide net oil-equivalent production rose 4%, mostly due to the acquisition of PDC Energy Inc. The $6.3 billion acquisition closed in August and is expected to enhance the company’s position in the DJ and Permian Basins. On Monday, Chevron unveiled a deal to acquire Hess Corp.

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