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JULY 2013 INVESTOR PRESENTATION – Chevron Corp

Chevron Corp · Jul 9, 2013 · 66 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. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 1
    Chevron 2013 July 2013 2013 Chevron Corporation
  2. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 2
    Key Messages Industry leading results Strategies aligned with macro environment Long-term growth secure Focused on execution 2013 Chevron Corporation 3
  3. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 3
    Strong Safety Culture Total Days Away From Work Rate 0.20 Do it safely or not at all. 0.15 0.10 There is always 0.05 2 2 time to do it right. 1 1 1 0.00 2008 2009 2010 2011 2012 CVX Ranking Relative to Competitors…
  4. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 4
    Process Safety Focus Oil Spills to Land or Water Zero is attainable. Thousands of Barrels 120 100 80 60 40 20 1 2 2 2 0 1 2008 2009 2010 2011 2012 CVX Ranking Relative to Competitors Competitor Range 1 being the…
  5. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 5
    Consistent Strategies Upstream Grow profitably in core areas and build new legacy positions Gas and Midstream Commercialize gas resource base Downstream and Chemicals Improve returns and grow earnings across the value chain…
  6. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 6
    Financial Performance 2012 1Q13 Earnings 26.2 Billion 6.2 Billion ROCE 18.7% 17.9% Dividend Increase 11.1% 11.1% Share Repurchases 5.0 Billion 1.25 Billion C&E Spending 34.2 Billion 8.9 Billion Debt Ratio 8.2% 9.2%…
  7. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 7
    Execution Drives Industry Leading Profitability Upstream Earnings per Barrel Downstream Earnings per Barrel 30 4 1 25 1 1 3 2 20 1 3 1 15 2 2 1 10 1 5 0 0 5 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 -1 CVX…
  8. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 8
    Strong Financial Results Indexed First Call EPS Indexed Cash Flow Per Share* Basis : 2007 = 100 Basis : 2007 = 100 200 200 1 1 1 1 1 2 1 3 2 100 100 2 3 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012…
  9. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 9
    Top-Tier ROCE While Growing the Business Indexed Avg. Capital Employed Adjusted ROCE Basis: 2007 = 100 Percent 180 40% 1 160 1 30% 2 140 1 2 20% 120 2 2 2 2 10% 4 100 80 0% 2007 2008 2009 2010 2011 2012 2008 2009 2010…
  10. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 10
    Competitive Shareholder Distributions While Maintaining Strong Balance Sheet Indexed Dividend Growth Share Repurchases Balance Sheet Basis: 2004 = 100 Cumulative Amount, Billions 1Q13 Net Cash Position, Billions 11.1% 2Q13…
  11. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 11
    Consistent Financial Priorities Maintain Fund Maintain Return and grow capital financial surplus dividend program strength cash to for future and flexibility stockholders earnings 2013 Chevron Corporation 12
  12. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 12
    Delivering Top-Tier Returns Total Stockholder Return as of 6/30/2013 5-Year 10-Year Other 16.3% Competitors Majors S&P S&P 7.2% Other Majors Competitors Majors: BP, RDS, TOT, XOM; Other Competitors: APA, APC, BG, ENI,…
  13. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 13
    2013 Capital Spending: 36.7 Billion By Region By Category Europe, Latin America Downstream Other Eurasia, 3% & Chemicals Middle East 4% 11% 6% Exploration 9% Upstream Base Africa Asia Pacific 29% 14% 42% Other Upstream*…
  14. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 14
    Strategic Reinvestment Drives Peer Leading Production Growth Reinvestment Ratio 2017 Production of 3.3 MMBOED Percent Basis: 2012 = 100 150 130 120 120 3 90 4 3 110 3 5 60 100 30 0 90 2008 2009 2010 2011 2012 2012…
  15. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 15
    Growing the Business and Rewarding Shareholders Estimated Cash Generation Leading earnings Cash Flow from Operations, Billions and cash margins 50 40 Strongest future 30 volume growth 20 Projects accretive to 10 future cash…
  16. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 16
    Downstream & Chemicals 2013 Chevron Corporation
  17. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 17
    Well-Positioned for Today and the Future Strategy Performance Growth Improve returns Top-tier performance Targeting growth Operational excellence Safety Asia Focused portfolio Reliability Chemicals Competitive assets Profitability…
  18. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 18
    Demand Growth Points to Attractive Segments 2010 2020 Outlook 2010 2020 Outlook Premium Base Oils Asia is the primary Fuels 83% growth growth engine 14% growth Rest of World Americas Americas Rest of World Lubricants and petchem…
  19. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 19
    New Resources Creating Opportunity Ethylene cash costs Brent-WTI differential /MT Asia Naphtha /BBL North America 1000 20 Ethane 750 15 500 10 Middle East 250 5 Ethane 0 0 2008 2012 2008 2012 2008 2012 2010 2015…
  20. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 20
    Sustained Top-Tier Reliability Sustaining high-level Solomon Utilization Chevron vs. International Majors of utilization performance 85% 1 Deploying turnaround 2 3 1 1 improvement initiatives 80% 7 75% 70% 2000 2002…
  21. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 21
    Strong Competitive Performance 4 3.01 Per barrel 3 2 2012 Adjusted Earnings* 3 1 2 1 1 0 5 -12008 2008 2009 2010 2011 2012 35 18.1% 25 2012 Adjusted ROCE 15 2 2 2 2 5 5 -5 2008 2009 2010 2011 2012 * Downstream…
  22. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 22
    We Deliver Results Return on Capital Employed 3-Year R&M Commitment 10% Improvement 7% Actual Improvement Portfolio Target and Costs Marketing Refining Market 2009 2012 Excludes chemicals, non-recurring items 2013…
  23. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 23
    Competitive Asia Portfolio Focused footprint High Value Products Gasoline & Distillates, MMBD Scale at regional and facility level XOM 1.0 RDS Strong market positions 0.5 Targeted capital investments BP 0.0 Refinery…
  24. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 24
    Chevron Phillips Commodity Chemicals Growth Advantaged feedstock position Feedstock Cost /MT Asia North America and Middle East N. America Naphtha 1,000 Naphtha N. America Strong performance trend 500 Middle Ethane East Peer…
  25. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 25
    Chevron Oronite Specialty Chemicals Growth Lubricant Additives World-scale plants Performance Demand After-Tax Earnings 3 major demand centers 4-year Average 55% Asia Expanding capacity 3x increase Pacific increase Detergents…
  26. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 26
    Chevron Lubricants Growing a High Margin Business Base Oil Capacity Premium base oils Performance Premium Base Oils After-Tax Earnings end of 2013 Leading producer 4-year Average MBD Expanding capacity 2x 60 increase Asia and…
  27. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 27
    Major Capital Projects Drive Earnings Growth Cedar Bayou USGC Petrochemicals Oronite Additives Capital Employed Hexene Plant Ethylene Polyethylene Plant Expansions 250 kMTA 1500 kMTA 1000 kMTA Singapore 2011 24% 47% 29% 2015…
  28. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 28
    Upstream 2013 Chevron Corporation
  29. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 29
    Upstream Continues to Execute the Right Strategies Grow profitably in core areas and build new legacy positions Operational excellence Maximizing value of base business Selection and execution of major capital projects Superior…
  30. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 30
    A Strong Worldwide Portfolio 724 MBOED 579 MBOED 2012 Net Production By Region North America Europe, Eurasia and Middle East 2.6 MMBOED 2012 Proved Reserves By Region 612 MBOED 695 MBOED Africa & Latin America…
  31. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 31
    Strong Reserve Performance 2012 Reserve Replacement Ratio: 112% Reserve Billion Barrels of Oil-Equivalent Replacement Ratio Net 11.24 Production Additions 11.35 % 101 (0.96) 1.07 3 Year % 112 2011 2012 5 Year Actual…
  32. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 32
    Consistent Exploration Success 10.2 BBOE 54 % 74 % Resource(2) Replacement 20022011 Percent Replacement Resource(1) Adds Success Rate Success Rate 10 Year Total 10 Year Average in 2012 73% 67% 62% 61% RDS BP TOT 33%…
  33. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 33
    Portfolio Delivers Competitive Cost Structure and Strong Realizations Upstream Costs Realizations per BOE per BOE 45 80 1 1 3 30 2 2 65 4 3 1 2 15 50 3 0 35 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Cost structure…
  34. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 34
    Superior Financial Performance Continuing to Outperform Competitors 30 1 23.70 Per BOE 1 1 20 1 2012 Adjusted Earnings 10 2 0 2008 2009 2010 2011 2012 60 21.5% 40 3 1 2 1 2012 Adjusted ROCE 20 4 0 CVX Ranking…
  35. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 35
    Base Operations Deliver High Returns Base production 2 MMBOED Net Production MMBOED Sustaining 4% decline 3.0 30% of C&E assigned to base 2.0 Small Capital Projects have high 1.0 rates of returns 0.0 Applying technology to…
  36. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 36
    Strong Base Operation Capabilities Operating 100 drilling and Net Wells Drilled and Completed* 120 workover rigs 2,000 Operate large base assets: 1,500 Kern River Steamflood: 10,500+ wells Duri Steamflood: 8,000+ wells 1,000…
  37. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 37
    U.S. Unconventional Plays West Texas, New Mexico & Northeast NN EEWWME MEXX ICIC OO TE TE XX ASAS Permian CVX Acreage Permian Basin Marcellus Shale Basin Utica Shale Midland Midland Basin Basin Delaware Delaware…
  38. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 38
    Increasing Activity in Permian Liquid Rich Plays Midland Basin Permian Basin Growth 550,000+ net acres Net Production MBOED Rig Count Wolf camp, Cline, Atoka 200 60 Drilled 300 gross wells in 2012 150 45 Increasing rig activity…
  39. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 39
    Strong Position in Marcellus and Utica Marcellus Marcellus Cumulative Production BCF 700,000+ acres 2.5 Early well results near high end of expectations 2.0 8 rigs running 1.5 Remaining carry 850 million 1.0 0.5 Utica…
  40. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 40
    Diverse Portfolio of Unconventional Resources in the U.S. Lower 48 Thousand Acres 3.5 million net acres in (Chevron Net) 13 unconventional plays Utica Wolfbone- Delaware Significant acreage with Wolfcamp- Midland wet gas and/or…
  41. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 41
    Continued Growth From Major Capital Project Startups Between 2013 and 2017 Project Startups Project Startups 50 250MM Chevron Share 16 1B Chevron Share Clair Ridge Hebron Stampede Chuandongbei Jack/St. Malo Stage 1 and 2 Big…
  42. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 42
    Growth in Deepwater Papa-Terra Jack/St. Malo Big Foot Tubular Bells Startup in late 2013 Startup in 2014 Startup in 2014 Startup in 2014 Production capacity of Production capacity of Production capacity of Peak production of 140…
  43. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 43
    Leading Player in the Gulf of Mexico Chevron Assets GOM Operations Major Capital Projects Petronius Appraisal Chevron Leases: Gemini - GGOM: 687 - DW: 390 Tubular 2013-15 Exploration Drills Bells Blind Discovery Genesis Faith…
  44. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 44
    The Deepwater Gulf of Mexico Gulf of World-Class Petroleum Basin* Lower Tertiary Mexico Trend 77 BBOE Discovered 48 BBOE Produced Miocene Most challenging wells in the world Trend Deepest water developments in the world Blind…
  45. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 45
    Deployment of New Deepwater Technologies from Top to Bottom Seismic Imaging Reverse Time Migration Integration of 3D Basin and Mechanical Earth Models Drilling & Completions Single Trip Multi Zone Frac Pack Dual Gradient…
  46. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 46
    Chevrons Technology Portfolio: Driving Improvements in Hydrocarbon Recovery 20 % recovery factor < 10 recovery factor % Gas Injection for Optimized Enhanced Oil Long Life Waterflood Recovery Seafloor In-Well Pumps…
  47. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 47
    Gorgon: Achieving Milestones and Advancing Toward First LNG Progress 2013 Key Milestones Construction 60% complete Second gas turbine generator on foundation Over 5,000 people on Barrow Island Delivery of all LNG Train 1 modules…
  48. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 48
    Wheatstone: Ramping Up Construction Activity Progress 2013 Key Milestones First two phases of camp complete Commence platform substructure fabrication Over 1,200 people at Ashburton North site Begin offshore dredging Cut first steel…
  49. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 49
    Continued Exploration Success Builds Momentum for Australia LNG Expansions 21 Discoveries Added 10 TCF 2 impact 2009-2013 of resources* wells in 2013 Kentish Knock Kentish Knock South Acme West-2 Orthrus-2 Acme West-1 Arnhem…
  50. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 50
    New Supplies Needed to Meet Demand Global LNG Supply and Demand MTPA 500 Demand 400 300 Under Construction 200 Recent Additions 100 Historic 0 2000 2012 2025 Source: Wood Mackenzie and CVX Internal Projections.…
  51. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 51
    Diverse Portfolio of Growth Opportunities LNG Deepwater Shale/Tight Resources Angola LNG Papa-Terra Permian Gorgon Jack/St. Malo Marcellus Wheatstone Big Foot Utica Tubular Bells Net Production MBOED 500 500 500 400 400 400…
  52. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 52
    Focused on Execution of Major Capital Projects Project Completion Status 2017 Production by Angola LNG Project Start Date Escravos Gas to Liquids Big Foot Startup 3.3 MMBOED Jack/St. Malo 2013 to Chuandongbei - Stage 1 2014…
  53. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 53
    Increased Confidence in 2017 Production Growth 98% of target Net Production in 2017* MMBOED in Design, Construction 3.3 3.3 3.5 and Production 3.0 2.5 Increased 2.0 base development activity 1.5 1.0 Momentum 0.5 0.0 for…
  54. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 54
    Long-Term Growth Areas Silurian (Poland, Romania and Bulgaria) Liard & Horn Tengiz Future Growth River Basin Rosebank Lithuania Tengiz Wellhead Pressure Management Kitimat LNG Ukraine Hebron Duvernay Marcellus & Utica Wolfcamp…
  55. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 55
    Expanding LNG Operations Kitimat LNG Gorgon Train 4 Project currently in FEED Expect FEED in 2013 50% interest in 2 x 5 MTPA LNG trains and 1 x 5.2 MPTA LNG train on Barrow Island Pacific Trails Pipeline New pipeline to Barrow…
  56. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 56
    Eurasia Growth Projects CPC Expansion Tengiz WPM Project Tengiz FGP Phased increase in Extends production plateau Grows asset to 1 MMBOED capacity to 1.4 MMBOD from existing assets Gas injection improves by 2016 Coordinated with FGP…
  57. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 57
    Wafra Steamflood Wafra Steamflood Stage 1 2nd Eocene Large Scale Growing production by 80 MBOD Steamflood Pilot Potential to increase oil recovery to Expected to enter FEED in late 2013 greater than 50% Utilizes existing 1st Eocene…
  58. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 58
    Offshore Major Capital Projects Hebron Rosebank Buckskin/Moccasin Gravity Based Structure Water depth 3,700 ft Hub concept opportunity located offshore Canada Peak production of Potential co-development Peak production of 70 MBOED…
  59. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 59
    Unconventional Focus on Europe Poland Three wells drilled to date Commence 3D seismic acquisition in 2013 Ukraine Winning bid in an auction to explore 1.6 million acres; presently negotiating the PSA and related agreements.…
  60. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 60
    Key 2013 Exploration Well Activity Lithuania, Poland, and Romania Liard Basin Orphan Duvernay Basin Wolfcamp & Marcellus & Utica Delaware Basins Longli GOM Shelf Deepwater & DW Nigeria Kurdistan China Region of Iraq…
  61. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 61
    Key Long-Term Exploration Test Areas Deepwater Shale and Tight Resources Canada Poland Argentina China Romania China Liberia Lithuania Australia Morocco Ukraine South Africa Sierra Leone Bulgaria Suriname 2013 Chevron…
  62. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 62
    Superior Cash Margin Position Oil and Gas Cash Margin Cash Flow Margin Price Sensitivity Adjusted Cash Margin /BOE Adjusted Cash Margin /BOE 50 50 40 1 40 1 30 1 30 1 20 20 10 10 0 0 2009 2010 2011 2012 70 90 110 130…
  63. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 63
    Legacy Assets of Today and Tomorrow % of current production % of 2020 production 49 from legacy assets 60 from legacy assets Over 1,300 MBOED of production from shallow decline assets Reduces decline of portfolio through new…
  64. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 64
    Appendix 2013 Chevron Corporation
  65. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 65
    Reconciliation of Chevrons Adjusted Earnings TOTAL UPSTREAM 1Q13 2012 4Q12 3Q12 2Q12 1Q12 2011 2010 2009 2008 Adjusted Earnings * (MM) 5,916 21,788 5,458 4,539 5,620 6,171 24,786 17,677 10,632 21,619 Adjustment Items: Asset…
  66. JULY 2013 INVESTOR PRESENTATION – Chevron Corp – slide 66
    Reconciliation of Chevrons Adjusted Earnings TOTAL DOWNSTREAM, INCLUDING CHEMICALS 1Q13 2012 4Q12 3Q12 2Q12 1Q12 2011 2010 2009 2008 Adjusted Earnings * (MM) 701 3,899 925 689 1,681 604 3,091 2,228 (67) 3,152 Adjustment Items:…

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