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June 2015 Investor Presentation – Chevron Corp

Chevron Corp · Jun 9, 2015 · 50 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2015 Investor Presentation – Chevron Corp – slide 1
    Chevron 2015 Investor Presentation June 2015 2015 Chevron Corporation
  2. June 2015 Investor Presentation – Chevron Corp – slide 2
    Key Messages Long-term fundamentals attractive Long-term strategies and financial priorities remain sound Actions aligned with low price environment Capital spending reduced, project completion focus Cost reduction efforts…
  3. June 2015 Investor Presentation – Chevron Corp – slide 3
    Leading Operational Excellence Performance Days Away From Work Rate Indexed Tier 1 Loss of Containment Basis: 2010 = 100 0.20 100 75 0.10 50 25 1 1 1 1 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CVX Ranking…
  4. June 2015 Investor Presentation – Chevron Corp – slide 4
    Long-Term Demand Remains Robust Global Energy Demand MMBOED Growth 400 +40% driven by increasing population and Other expanding income 300 Coal 20% 200 increase in Gas liquids demand 100 Oil 45% increase in 0 2013 2035…
  5. June 2015 Investor Presentation – Chevron Corp – slide 5
    Significant New Supply Needed Long-Term Global Liquids Supply & Demand 10 to 15% natural MMBD decline in existing base 120 Demand production 100 80 290 Billion Barrels Required between 60 MMBD new 2013 2035 capacity needed…
  6. June 2015 Investor Presentation – Chevron Corp – slide 6
    Short-Term Market Imbalance and Outlook OPEC Spare Capacity & Inventory Change Supply Response Lags MMBD Price Change 12 10 Spare Capacity Low by 8 Historical Standards 6 4 Balance Potentially Driven 2 by Multiple…
  7. June 2015 Investor Presentation – Chevron Corp – slide 7
    Attractive Long-Term LNG Outlook Global LNG Supply and Demand MTPA LNG demand 500 expected to almost 400 Supply Opportunity double by 2025 U.S. Probable U.S. Under 300 Pacific Basin Intl. Under Construction 70 MTPA…
  8. June 2015 Investor Presentation – Chevron Corp – slide 8
    U.S. Supply Responding to Lower Oil Prices Capex Reductions 2015 U.S. Production* Percent 36% MMBD 10.0 Mid/Small Majors NOC Large Cap Cap reduction to U.S. upstream investment 9.5 58% -12% drop in oil directed rigs since…
  9. June 2015 Investor Presentation – Chevron Corp – slide 9
    Consistent Long-Term Strategies Upstream Grow profitably in core areas and build new legacy positions Downstream and Chemicals Deliver competitive returns and grow earnings across the value chain Gas and Midstream Enable the…
  10. June 2015 Investor Presentation – Chevron Corp – slide 10
    Financial Priorities Unchanged Indexed Dividend Growth Maintain and Basis: 2004 = 100 grow dividend 27 Consecutive Annual 300 Fund capital program 11% Increases Compound Annual for future earnings 200 Growth Rate Maintain…
  11. June 2015 Investor Presentation – Chevron Corp – slide 11
    Strong Financial Performance 2014 1Q15 Earnings 19.2 Billion 2.6 Billion ROCE 10.9% 9.5% C&E Spending 40.3 Billion 8.6 Billion Debt Ratio 15.2% 17.9% Dividends Paid 7.9 Billion 2.0 Billion 2015 Chevron Corporation 12
  12. June 2015 Investor Presentation – Chevron Corp – slide 12
    Total Shareholder Return Total Shareholder Return as of 05/31/2015 5-Year TSR 10-Year TSR S&P 10.5% 10.3% XOM RDS TOT S&P XOM RDS TOT BP BP Dividend Returns Stock Price Appreciation 2015 Chevron Corporation 13
  13. June 2015 Investor Presentation – Chevron Corp – slide 13
    Balancing the Cash Equation 2015 to 2017 Cash Generation Drivers Cash Flow Growth Reduced Spend Asset Sales 20% upstream production Spend flexibility continues Successful divestment increase to increase each year program expanded…
  14. June 2015 Investor Presentation – Chevron Corp – slide 14
    Production Growth Outlook Maintained Projected Net Production MBOED 3.1 MMBOED Volume Growth 3,100 2017 target on track Asset LNG 2,571 Base* Sales Shale & Tight (136) (65) 730 20% Growth Offshore Leading industry peers…
  15. June 2015 Investor Presentation – Chevron Corp – slide 15
    2015 Capital & Exploratory Program: 35 Billion By Region By Category Downstream & Other 2% 35% Chemicals 12% 8% North America Europe, Eurasia Exploration & Middle East 9% Upstream Base 24% Other Upstream* 13% Shale/Tight…
  16. June 2015 Investor Presentation – Chevron Corp – slide 16
    Reduced Spending and Increasing Flexibility Total Capital & Exploratory Spend Billions Project spend declines 40 as projects come on-line 30 Flexibility increases to 8+ billion by 2017 20 Robust base business 10 investment…
  17. June 2015 Investor Presentation – Chevron Corp – slide 17
    Aggressive Cost Management Cost Management Upstream Gross Operated Spend Targeted category specific reductions Other 11% between 10 and 30% Professional Services EPC 28% 2,200 completed engagements 7% Materials and 900 million…
  18. June 2015 Investor Presentation – Chevron Corp – slide 18
    Asset Sales Program Expanded Asset Divestment Proceeds* 2014 2017 15 Billion 10 Billion Strong results 10 Billion through Significant Sales April 2015 Caltex Australia Value-based Chad/Cameroon Duvernay decisions…
  19. June 2015 Investor Presentation – Chevron Corp – slide 19
    Free Cash Flow Covers Dividend by 2017 Cash Flow After Dividends Balance with minimal price recovery 2015* Downstream 2017 60/bbl & Chemicals 70/bbl Reduced Other Upstream Spend Volume Growth drives cash flow LNG Cash…
  20. June 2015 Investor Presentation – Chevron Corp – slide 20
    Downstream & Chemicals 2015 Chevron Corporation
  21. June 2015 Investor Presentation – Chevron Corp – slide 21
    Strategy Focused on Competitive Returns Deliver competitive returns and grow earnings across value chain Improving Operational Excellence Growing higher return segments Petrochemicals Lubricants and Additives Focused Refining…
  22. June 2015 Investor Presentation – Chevron Corp – slide 22
    Demand Growth Points to Attractive Segments 2013 2025 Outlook 2013 2025 Outlook Petrochemicals Asia is the primary Fuel (by Region) 59% growth growth engine 17% growth Americas Americas Rest of World Rest of World Lubricants and…
  23. June 2015 Investor Presentation – Chevron Corp – slide 23
    A Strong Worldwide Portfolio Chemicals Portfolio Fuels Refining Feed & Market Advantages 2014 Capital Employed Pacific Rim Strength 36% 35% 29% 2017 Capital Employed 24% 45% 31%% 31 Olefins & Aromatics Production…
  24. June 2015 Investor Presentation – Chevron Corp – slide 24
    Chevron Phillips USGC Petrochemicals Project Overview & Progress 2015 Key Milestones 1,500 kMTA ethylene Baytown, TX 65% complete (5,000 people onsite) 1,000 kMTA polyethylene Old Ocean, TX Polyethylene reactors set in place…
  25. June 2015 Investor Presentation – Chevron Corp – slide 25
    Upstream 2015 Chevron Corporation
  26. June 2015 Investor Presentation – Chevron Corp – slide 26
    A Diverse, Worldwide Portfolio Europe, Eurasia North America 2.6 MMBOED 3.1 MMBOED and Middle East 2014 Net Production 2017 Net Production 1,000 1,000 750 750 500 500 250 250 0 0 2014 2017 2014 2017 Africa & Latin America…
  27. June 2015 Investor Presentation – Chevron Corp – slide 27
    Consistent Exploration Success 1.4 BBOE 66% 2.07 Value Creation Resource* Adds Success Rate Unit Finding Cost from Exploration in 2014 in 2014 in 2014 20042013 12 B 6 B TOT 3 B 2014 Discoveries RDS XOM (1) B 10.2 BBOE…
  28. June 2015 Investor Presentation – Chevron Corp – slide 28
    Improving Cash Flow in a Low Price Environment Reducing capital Lowering costs Increasing efficiency Divesting assets Growing volumes 2015 Chevron Corporation 29
  29. June 2015 Investor Presentation – Chevron Corp – slide 29
    Reducing Capital to Preserve Cash Capital flexibility Upstream C&E Billions increasing 40 Investment priorities: 30 Projects under construction 20 High-return base and 10 shale & tight Attractive longer-term 0 2014 2015…
  30. June 2015 Investor Presentation – Chevron Corp – slide 30
    Driving Down Unit Costs in Deepwater Technology Advances i-field Ocean bottom node seismic Optimized completions Efficient Drilling Seafloor pumping Seafloor Pumps i-field automation Ocean Bottom Nodes (Seismic Imaging)…
  31. June 2015 Investor Presentation – Chevron Corp – slide 31
    Permian Efficiency and Performance Factory Development Approach Delivering Results Reduced Reduced Increased Reduced drilling cost completion wells per days from spud per foot by cost by rig year by to production by 20 % 28 % 21 %…
  32. June 2015 Investor Presentation – Chevron Corp – slide 32
    Divesting Assets Farm Downs 20092014 Farm Downs / Divestments Manage risk Exploration Pre-Sanction Production Reduce capital Duvernay Wheatstone Chad Leverage investment Nigeria OMLs Gorgon Netherlands Divestments Browse Nigeria…
  33. June 2015 Investor Presentation – Chevron Corp – slide 33
    2017 Production Growth Update Strong Base Projected Net Production MBOED Future Shale & Tight LNG* Uncertainties 3,100 Permian (20) Vaca Muerta Offshore* Marcellus / Utica 2,571 Base Shale & 340 Tight Asset Price MCP…
  34. June 2015 Investor Presentation – Chevron Corp – slide 34
    High Performing Base Enables Growth Reinvestment mitigates base decline Production Profile Base and Shale & Tight Infill drilling and workovers Average Annual Decline Base major capital projects 0 1% Shale & tight developments <…
  35. June 2015 Investor Presentation – Chevron Corp – slide 35
    Key Projects and Developments Liard and Horn River Basin Captain EOR Rosebank Kitimat Clair Ridge TCO FGP/WPMP Marcellus Duvernay and Utica Hebron Permian Basin Tahiti Vertical Expansion Stampede Chuandongbei…
  36. June 2015 Investor Presentation – Chevron Corp – slide 36
    Valuable Permian Growth Leading Position Advantaged Acreage Production Growth 2 MM net acres 2014 Royalty Dollars per Barrel (2) Net Unconventional Production (2) MBOED 85% no or low royalty 20 300 Stacked play advantage 7…
  37. June 2015 Investor Presentation – Chevron Corp – slide 37
    Midland Basin 500,000 net acres 8,200 liquids-rich prospects 46 MBOED* production 11 active rigs 195 wells expected in 2015 Bradford Ranch horizontal program ongoing Midland Basin Chevron Development Areas Chevron Lease…
  38. June 2015 Investor Presentation – Chevron Corp – slide 38
    Bradford Ranch Wolfcamp Development Midland AC/AF 5HB Full Field Layout 1,300 BOED IP, 88% liquids 7,500 lateral Wolfcamp B completion Midland AC/AF 6HB Midland 830 BOED IP, 87% liquids 4,600 lateral Wolfcamp B completion…
  39. June 2015 Investor Presentation – Chevron Corp – slide 39
    Delaware Basin 1 million net acres 6,400 liquid-rich prospects 57 MBOED* production 10 active rigs 130 wells expected in 2015 Salado Draw horizontal program ongoing Delaware Basin Chevron Development Areas Chevron Lease…
  40. June 2015 Investor Presentation – Chevron Corp – slide 40
    Gulf of Mexico Gulf of Lower Tertiary Trend Mexico World-Class Petroleum Basin* Most challenging wells in the world Miocene Deepest water developments in the world Trend Blind Jack & Buckskin & Big Deepwater St. Malo…
  41. June 2015 Investor Presentation – Chevron Corp – slide 41
    Leading Player in the Gulf of Mexico Core Shelf Assets DW Producing Fields Main Pass DW MCPs Wilcox Discoveries Bay Marchand Petronius Chevron Leases Shelf Eugene Island 101 MBOED South Timbalier Tubular Bells Blind Faith…
  42. June 2015 Investor Presentation – Chevron Corp – slide 42
    Strong Performance From Jack / St. Malo Jack / St. Malo Gross Production MBOED First production December 2014 125 Reservoir Delivered on time and on budget Surveillance and 100 5 wells currently producing Ramp-up 70 MBOED*…
  43. June 2015 Investor Presentation – Chevron Corp – slide 43
    Hub-Scale GOM Discoveries NW Keathley Canyon Hub Concept Benefits Anchor Covers 24 GOM leases Multiple fields per facility Significant discovery Guadalupe oil discovery Reduces overall risk Pay across multiple Tiber and Gila…
  44. June 2015 Investor Presentation – Chevron Corp – slide 44
    Gorgon Delivering First LNG in 2015 Progress 2015 Key Milestones Project 90% complete Fuel gas import for plant commissioning All Train 1 and common modules installed Start-up gas turbine generators All 18 wells drilled and…
  45. June 2015 Investor Presentation – Chevron Corp – slide 45
    Wheatstone on Plan for 2016 Start-up Progress 2015 Key Milestones Project approaching 60% complete Complete dredging program All 9 production wells drilled to reservoir top Platform float-over Steel Gravity Structure 7 of 24 major…
  46. June 2015 Investor Presentation – Chevron Corp – slide 46
    Other Significant Start-ups 2015-2016 Angola LNG Moho Nord Mafumeira Sul Progressing repairs Construction on all Facilities scope 80% Implementing design packages in progress complete improvements Drilling commenced in Installed 3…
  47. June 2015 Investor Presentation – Chevron Corp – slide 47
    TCO Future Growth Optimization Current Status WPMP Sustains Plateau Reducing vendor and contractor costs FGP Grows Peak Production Capacity Progressing detailed engineering Constructing critical infrastructure Finalizing MOU…
  48. June 2015 Investor Presentation – Chevron Corp – slide 48
    2015 Exploration Program Highlights SA/PZ Liard Basin Clair Duvernay Flemish Pass Midland & Marcellus & Utica Delaware Basins Morocco China Offshore Mauritania GOM DW Thailand Brazil Myanmar Nigeria Angola Cooper…
  49. June 2015 Investor Presentation – Chevron Corp – slide 49
    Peer Leading Production Growth Net Production Growth* Basis: 2008 = 100 Highest growth 135 of peer group 125 1 Long-term projects 115 approaching start-up 2 1 1 105 2 2 2 2 LNG 95 340 MBOED 85 Offshore 75 250 MBOED 2008…
  50. June 2015 Investor Presentation – Chevron Corp – slide 50
    Growth Volumes Accretive to Leading Cash Margin Cash Margin Growth* Net Production MMBOED Percentage of 3.5 high margin barrels increasing 3.0 2.5 2.0 Volume growth increases 1.5 operating cash flow 1.0 0.5 0.0 25 /…

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