Chevron Corp.’s stock rose 1.2% in premarket trade Friday, after the oil giant beat profit and sales expectations, and said it would cut spending and up to 7,000 jobs in the coming years. Earnings for the quarter ended Sept. 30 fell to $2.04 billion, or $1.09 a share, from $5.59 billion, or $2.95 a share, in the same period a year ago, but were well above the FactSet EPS consensus of 76 cents. Revenue dropped to $32.77 billion from $51.82 billion, reflecting declines in market prices for crude oil and natural gas, but was well above the FactSet consensus of $27.7 billion. The company said it expects 2016 capital expenditures to be about 25% lower than 2015 levels, and expects to cut 6,000 to 7,000 jobs as it further reduces spending in 2017 and 2018. “While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability,” said Chief Executive John Watson. “We are focused on improving results by changing outcomes within our control.” The stock had dropped 20% year to date through Thursday, while the S&P 500 has gained 1.5%.
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