Unlike many of its peers, Chevron (CVX) is avoiding heavy revenue cuts brought about by lower natural gas price realizations. It is insulated by its size, to be sure, but is also benefiting from a measure of foresight regarding the price depression and a few smart moves internationally.

In the second quarter, its average sales price of natural gas in the U.S. was $2.17 per tcf, compared to $4.35 in the second quarter last year. The nearly fifty percent drop is partially offset by strong international natural gas sales, since its international natural gas realizations actually rose, from $5.49 per tcf in the second quarter of last year to $6.10 per tcf in the second quarter of this year. It is further offset by less U.S. natural gas production, which Chevron reduced in the second quarter of 2012 quarter over the second quarter of 2011 by about 9%, from 1,299 mmcf per day to 1,186 mmcf per day. Due to inventory accumulated over the past year, Chevron’s total sales were essentially flat year over year, at 5,314 mmcf per day in the most recent quarter ended compared to 5,724 mmcf per day in the same quarter of last year.

This avoidance of steep revenue drops tied to natural gas is one reason it did so well in the second quarter- Chevron’s second quarter revenues came in just 11% below its revenues from the same quarter a year ago, at $60 billion compared to $67 billion, a much gentler slide than seen by most of its competitors. To continue reading, click here.