Chevron Says 1st-Quarter Upstream Earns to Benefit From Higher Oil and Gas Prices

SAN RAMON, Calif. (AP) -- Chevron Corp. said Wednesday it expects its first-quarter upstream earnings to get a boost over fourth-quarter levels from higher crude oil and natural gas prices.

But first-quarter downstream earnings are expected to be flat compared with the fourth quarter, the company said.

Upstream operations include the exploration and production of oil and gas, while downstream operations include refining, marketing and transportation of energy products.

As the price of oil has risen in recent months, the industry's profit margins for refining and marketing have slipped, because gasoline prices haven't kept pace.

In addition, Chevron said it expects corporate and other charges to be higher between periods. And foreign exchange effects are expected to cut further into the company's first-quarter results than they did in the fourth quarter 2007, the company said.

Chevron also said it now expects its 2008 after-tax charges related to corporate and other activities to be between $250 million and $300 million, up from its previous guidance of $160 million to $200 million.

The company blamed higher costs related to technology projects and other corporate items.

Chevron shares rose 20 cents to $90.15 in aftermarket trading, after rising 67 cents to $89.95 in the regular session.