ChevronTexaco Output Lower Than Expected
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ChevronTexaco Corp., the second-biggest U.S. oil company, said Friday that fourth-quarter production fell 8.3% more than previously forecast after Hurricane Ivan wrecked platforms and pipelines in the Gulf of Mexico in September.
Damage from the mid-September storm reduced oil and natural gas output by the equivalent of 65,000 barrels a day during the quarter, the San Ramon, Calif.-based company said. ChevronTexaco had estimated a 60,000-barrel decline.
Costs associated with repairing platforms and other equipment exceeded $50 million in the quarter, ChevronTexaco said.
The storm-related production drop resulted in lost fourth-quarter sales of $125 million, 25% more than the company estimated in October.
ChevronTexaco is scheduled to release fourth-quarter results Jan. 28. Analysts surveyed by Thomson First Call expect per-share profit of $1.42, up from 82 cents a year earlier.
Shares of ChevronTexaco fell 58 cents to $51.15 on the New York Stock Exchange.
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