Chevron reported quarterly profits that topped Wall Street’s expectations, as a drop in earnings in its main business lines from a year ago were offset by lower expenses.

Shares of the company were up 1.5 percent at $116.37 in premarket trading.

  • Earnings: $1.95 per share vs. $1.87 per share forecast by Refinitiv
  • Revenue: $42.35 billion vs. $46.13 billion forecast by Refinitiv

The San, Ramon California-based oil major also beat the Street’s profit expectations last quarter, bolstered by new liquefied natural gas output from its Wheatstone in Australia and surging output from its wells in the Permian Basin.

Last month, the company announced plans to spend $20 billion on development and exploration for 2019. The budget is focused on short-cycle projects, most of which are projected to generate cash within two years.

Chevron has seen tighter profit margins in its downstream business, which focuses on refining and selling fuels like gasoline and diesel.

On Wednesday, Chevron announced it would buy Pasadena Refining System from Brazil’s Petrobras for $350 million. The deal will give Chevron control of a Pasadena, Texas refinery, its first processing facility in the Houston area and means of processing its growing Permian output.

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