Shares of Chevron Corp. were sinking toward a three-year low in early trading Friday, after the oil and gas giant reported quarterly profit that dropped, but beat expectations, while production was flat and revenue fell short of forecasts.

Chevron also reported its lowest first-quarter profits in years, with per-share adjusted profit falling to $2.18 per share on revenue of $47.61 billion. Similar to Exxon, Chevron does not adjust its reported results based on one-time events such as asset sales. Analysts predicted earnings of $2.15 per share on revenue of $48.66 billion.