Chevron Q3 2018 earnings

Chevron reported quarterly earnings that beat analysts’ expectations on Friday, but revenues fell short of estimates.

Shares of the oil major were up nearly 2 percent in premarket trading.

Chevron posted a profit of $4.05 for the quarter, more than double its earnings from a year ago. That came out to profit of $2.11 per share, slightly beating Wall Street’s expectations for $2.06 per share, according to Refinitiv.

“Our strong financial results reflect higher production and crude oil prices coupled with a continued focus on efficiency and productivity,” Chairman and CEO Michael Wirth said in a statement.

However, Chevron’s revenue of $43.99 billion came in light. Analysts had expected $46.67 billion in quarterly sales.

Shares of Chevron are down nearly 10 percent this year, with much of that decline coming over the last three months, despite the company announcing a $3 billion-per-year stock buyback program when it last reported quarterly earnings.

The San Ramon, California-based company has seen oil and gas production surge from its wells in the Permian Basin, the Texas and New Mexico region driving U.S. crude output to all-time highs. Analysts will be looking for continued strong growth.

They’ll also be scrutinizing results from Chevron’s downstream business, which focuses on refining crude oil into fuels like gasoline. Weak profit margins in Chevron’s international refining business weighed on its bottom line last quarter.

Last week, Reuters reported that Chevron is in talks to buy a Pasadena, Texas refinery, which would be its first Houston-area facility. The refinery would give Chevron control of a processing facility relatively close to its Permian wells and position it near the Gulf of Mexico exporting hub.

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