Chevron shares fell 2 cents to $124.92 in morning trading.
Chevron and other major oil companies are struggling to maintain production as they drain oil and gas from their fields around the world. At the same time, the cost of exploring new fields is rising as they have to venture into more extreme and remote conditions to access hydrocarbons.
Profits are getting squeezed as these costs rise, because average oil prices have been roughly flat for about three years.
Chevron is developing several enormous projects in Australia and the Gulf of Mexico that are expected to help the company grow production in the coming years. But they aren't producing anything yet, and analysts worry about the company's ability to get the projects up and running on time and on budget.
In the first quarter of this year, Chevron's oil and gas production fell 2 percent worldwide. In the U.S., production fell 4 percent as higher production of oil and gas in New Mexico and western Pennsylvania were more than offset by normal field declines elsewhere.
Overseas, where Chevron produces the vast majority of its oil and gas, production fell 2 percent. Increased production from projects on Nigeria and Angola was offset by field declines and weather-related shut-downs in Kazakhstan.
The average price Chevron fetched for its crude oil fell 3 percent both in the U.S. and abroad as oil prices around the world slipped slightly.
Results at Chevron's refining operations rose slightly, thanks to improved performance in the U.S.