Second quarter 2016 earnings conference call and webcast Jay Johnson Executive Vice President, Upstream Pat Yarrington Vice President and Chief Financial Officer Frank Mount General Manager, Investor Relations July 29, 2016…
2Q16 financial highlights Reported earnings (1.5) billion Reported earnings per diluted share (0.78) Earnings / EPS excluding special items and FX 0.7 billion / 0.35 Cash from operations 2.5 billion Debt ratio (as of…
(1) 2Q16 sources and uses of cash billions 2Q16 2016 YTD 15 15 0.2 4.0 1.4 10 10 0.1 6.5 1.3 2.0 5 5 10.0 2.7 4.5 3.7 2.5 0 0 Sources Uses Sources Uses (2) Sources of cash: Cash flow from operations Net debt…
Chevron earnings 2Q16 vs. 2Q15 millions Upstream Downstream Other Special items and FX Special items* Absence of 2Q15 gain on sale of CAL 571 Asset impairments in both quarters + 2Q16 gain on sale of New FX* Realizations…
Chevron earnings 2Q16 vs. 1Q16 millions Upstream Downstream Other Special items and FX 2Q16 asset impairments and project suspensions -725 Special -1,157 + 2Q16 gain on sale of New items* -1,227 -1,236 -1,470 Zealand…
Worldwide net oil & gas production 2Q16 vs. 2Q15 MBOED Growth across all shale and tight Major basins capital External projects events Jack / St. Malo, Chuandongbei and Shale Angola LNG ramp-ups & tight Asset sales Gorgon…
2016 production outlook Net production 2016 uncertainties MBOED Partitioned Zone restart MCP start-ups and ramp-ups 0 - 4% 2% growth Divestments growth Price effects Spend levels External events 2,571 2,622 Now expecting…
Gorgon / Wheatstone Gorgon Wheatstone Train 1 All 9 wells flow tested and ready for Current rate 90 MBOED production Producing at 70% capacity Plant structural, piping and cabling work currently ahead of plan Full capacity expected…
Other 2016 start-ups Alder First production expected 2H 2016 Chuandongbei All three trains online Mafumeira Sul All four platforms installed Hook-up & commissioning ongoing First production expected 2H 2016 Angola LNG…
Competitive Permian growth Growth underway Net production2 Midland & Delaware MBOED Delivering production growth expectations 400 2Q16 production 21% (24 MBOED) 300 higher than 2Q15 200 100 Advantaged acreage 20152015 2014…
Competitive Permian growth Competitive development costs Average development cost1 /BOE Paced, efficient development of 20 prioritized queue JV and industry best practices have 15 allowed accelerated learning 10 EUR performance…
Value from existing infrastructure Tahiti Vertical Expansion Jack / St. Malo 2 Caesar Tonga 2 Tahiti Spar Agbami Infill NWS Greater Western Flank 2 Agbami FPSO 2016 Chevron Corporation 13
FGP / WPMP Final Investment Decision (FID) in July Wellhead Pressure Management Production profile Project (WPMP) Start-up in 2022 Lower back-pressure on wells to maintain the existing plants at full capacity FGP Future Growth…
FGP / WPMP financials Accommodation building construction Project cost Total: 36.8 B Facilities: 27.1 B Wells: 3.5 B Contingency / Escalation: 6.2 B 18/BOE project development cost Financing in place All figures shown…
FGP / WPMP execution readiness Critical lessons learned incorporated into FGP / WPMP design and planning Increasing Engineering 50% at FID; underground piping, electrical and engineering maturity foundations in 3D model; 85% of…
FGP / WPMP Builds on previous successes Great partnership World class reservoir Proven technology Now is the time Reservoir pressure decline Capture market opportunities Project synergies Upside potential Future infill…
Spend reductions Total capital & exploratory OPEX and SG&A Quarterly Quarterly billions billions 12 8 2016 C&E is trending to lower end of 10 guidance range YTD 2016 vs. YTD 2015: -31% 8 6 OPEX reductions continue to be…
Asset sales program Proceeds billions (before tax) Target 10 510 Successful program Well-timed transactions Captured good value Axis Title 5.7 Public domain Hawaii downstream Divestment criteria Non-strategic fit 5…
Improving free cash flow Maintain and grow dividend Cash flow covers PRIORITY dividend in 2017 Fund capital program for future earnings Maintain strong Bringing MCPs online balance sheet Reducing capital spending FOCUS…
Appendix: reconciliation of non-GAAP measures Reported earnings to earnings excluding special items and FX 2Q15 3Q15 4Q15 1Q16 2Q16 Reported earnings (MM) Upstream (2,219) 59 (1,361) (1,459) (2,462) Downstream 2,956 2,211 1,011 735…
Appendix Worldwide net oil & gas production: 2Q16 vs. 1Q16 MBOED Major Shale Planned Angola LNG and Chuandongbei capital & tight turnarounds ramp-ups projects Price & cost recovery Permian unconventional growth 26 -45 Asset…
Appendix U.S. upstream earnings: 2Q16 vs. 1Q16 millions 2Q16 asset impairments 12/BBL increase in WTI -850 -1,113 Impairments Realizations Other 102 -635 270 1Q16 2Q16 earnings earnings 2016 Chevron Corporation…
Appendix International upstream earnings: 2Q16 vs. 1Q16 millions 2Q16 asset impairments and Impairments / project suspensions -609 Other charges 12/BBL increase in Brent -1,349 Favorable FX swing from 2Q16 Opex Other FX…
Appendix U.S. downstream earnings: 2Q16 vs. 1Q16 millions Other Absence of 1Q16 Hawaii Margins impairment Opex 50 Lower operating expenses from 50 absence of 1Q16 turnarounds Impairments 80 537 110 247 1Q16 2Q16…
Appendix International downstream earnings: 2Q16 vs. 1Q16 millions Asset Timing sales effects 2Q16 gain on sale of New Zealand Margins marketing Other -160 2Q16 timing effects -60 43 430 741 488 1Q16 2Q16 earnings…
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