fourth quarter 2015 earnings conference call and webcast John Watson Chairman and Chief Executive Officer Pat Yarrington Vice President and Chief Financial Officer Frank Mount General Manager, Investor Relations January 29,…
2015 key messages Strong operating performance HES Downstream Production growth Reserve replacement Low prices weak financial results Responding to market Progressing capital projects Capital and operating spend reduction…
Financial highlights 4Q15 2015 Earnings (0.6) billion 4.6 billion Earnings per diluted share (0.31) 2.45 ROCE 2.5% Year-end debt ratio 20% Dividends paid 2.0 billion 8.0 billion Note: Reconciliation of earnings…
(1) Sources and uses of cash billions 4Q15 2015 10 0.1 40 0.3 0.3 2.0 5.7 8.0 30 2.7 10.7 5 20 7.4 29.5 4.6 10 19.5 0 0 Sources Uses Sources Uses (2) Sources of Cash: Cash flow from operations Net Debt Issuance Asset…
Chevron earnings 2015 vs. 2014 millions Upstream Downstream Other Special items FX Realizations -3,085 282 19,241 Tax/ Margins Other Other Opex/ -219 585 Other 4,587 Liftings 2,415 763 2014 -16,885 1,490 2015…
Spend profile Total spend billions 12% 70 decline 13-18% Momentum carries into 2016 61 lower with largest impact in upstream Actions underway 2014 2015 2016 Total C&E Opex/SG&A Organization actions Upstream operating costs…
Capital & exploratory Total C&E billions Investment priorities 41.9 Safe, reliable operations 40.3 25-28 Complete projects in-flight 34.0 guidance Pace unsanctioned projects 26.6 DS&C / Other 20-24 Enable short-cycle, high…
Asset sales Asset divestment proceeds 2016 in public domain billions New Zealand downstream Hawaii refinery 5-10 Gulf of Mexico shelf additional Western Canada gas storage facilities South Africa downstream 11.5 actuals…
2016 production outlook Net production MBOED 2015 impacts MCP start-ups and ramp-ups 0-4% 2% Shale & tight growth growth growth Price effects Partitioned Zone shut-in 2016 uncertainties 2,571 2,622 Partitioned Zone restart…
Reserves Reserve 5 year reserves replacement ratio replacement Billions of barrels of oil-equivalent ratio Additions 11.2 10.5 Production 107% Asset 1 year sales (4.8) (0.2) 5.6 113% 5 year 2010 2015 Note: Numbers do…
Gorgon Train 1 Final commissioning First cargo expected 1Q16 Trains 2 & 3 All modules delivered Construction ongoing Start-up at 6 month intervals 2016 Chevron Corporation 12
Wheatstone Progress All train 1 modules delivered LNG loading jetty complete Trunkline ready for service 6 of 9 wells completed First LNG cargo mid-2017 2016 Chevron Corporation 13
Other projects coming online Recent and near-term Lianzi (Nov 2015) Moho Nord (Dec 2015) Chuandongbei (Jan 2016) Angola LNG Mafumeira Sul Bangka Alder 2016 Chevron Corporation 14
Macro Non-OPEC liquid fuel production MMBD 60 58 56 54 Jan-14 Jan-15 Jan-16 Jan-17 Jan 2015 Estimate Actuals Jan 2016 Estimate Source: WoodMac Macro Short-Term Outlook Dec 2015 2016 Chevron Corporation 15
Questions Answers 2016 Chevron Corporation 16
Appendix Reconciliation of earnings (excluding FX and special items) FY 2014 1Q15 2Q15 3Q15 4Q15 FY 2015 Reported Earnings (MM) 19,241 2,567 571 2,037 (588) 4,587 UPSTREAM Foreign Exchange 597 522 (146) 258 91 725 Asset…
Appendix Chevron earnings: 4Q15 vs. 4Q14 millions Upstream 45% decline in crude prices Upstream Lower gains on asset sales and FX Higher suspensions, DD&A and exploration 3,471 + Higher volumes and lower opex Downstream Lower…
Appendix Chevron earnings: 4Q15 vs. 3Q15 millions Upstream 15% decline in crude prices Upstream Higher impairments and suspensions Higher exploration expenses 2,037 Downstream/ + Higher volumes and tax benefits Other -1,420…
Appendix U.S. upstream earnings: 4Q15 vs. 3Q15 millions Higher impairments and Impairments/ suspensions -603 suspensions 15% decline in liquids -1,954 realizations Realizations Exploration Higher exploration expenses,…
Appendix International upstream earnings: 4Q15 vs. 3Q15 millions Realizations FX/ 15% decline in realizations Other Impairments Higher volumes 56 Absence of 3Q15 impairments Liftings 662 200 537 593 337 -500 162 175…
Appendix Worldwide net oil & gas production: 4Q15 vs. 3Q15 MBOED Base/ MCPs/ Other Other Shale & PSC tight effects Absence of planned Tengiz Price 25 effects 18 turnaround Turnarounds 24 Price and other PSC effects 28…
Appendix Worldwide net oil & gas production: 2015 vs. 2014 MBOED Shale & PZ tight shut-in Entitlement/ price Asset Jack / St. Malo, Tubular Bells and effects Base Major sales business/ Bibiyana expansion ramp-ups 44…
Appendix U.S. downstream earnings: 4Q15 vs. 3Q15 millions Margins Lower refining margins Turnarounds at Richmond and Volumes El Segundo refineries Opex -310 -90 Chemicals Lower Chemicals margins and -90 Other 1,249 higher…
Appendix International downstream earnings: 4Q15 vs. 3Q15 millions Timing Margins effects Higher Asian margins 105 FX Swing in timing effects -230 Other Unfavorable FX -186 962 -136 515 3Q15 4Q15 Earnings Earnings…
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