Chevron 2017 Investor presentation February 2017 2017 Chevron Corporation
2016 key messages 1 Priority unchanged Maintain and grow dividend Delivering on our commitments Finishing projects under construction Reducing capital spend Lowering operating expenses Completing asset sales Operating…
Leading operational excellence performance Days away from work rate Oil spills to land or water Thousands of barrels 0.10 60 0.05 30 1 1 1 1 1 2 1 2 1 1 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 CVX ranking relative…
Financial performance 2016 Maintain and Earnings (0.5) billion grow dividend Fund 12.8 billion Cash flow from operations capital program for future earnings C&E spending 22.4 billion Maintain strong balance sheet Debt ratio…
Improving free cash flow Cash flow after dividends* (including asset sales) billions 10 TCO Cash flow from operations DS&C/ financing/ Reduced spend asset sales 5 Upstream Other Price 0 recovery Further flexibility 2017*…
Spend reductions Total capital & exploratory OPEX and SG&A billions billions 45 35 40 Investment priorities 30 35 Safe, reliable operations 30 25 Complete projects in-flight 25 22.4 17 - 22 20 19.8 Short-cycle, high return 20…
Shorter-cycle, higher return investments Total capital & exploratory Spend profile Percentage of capital program Increase in shale and tight More brownfield opportunities Fewer major capital projects Reduced execution risk…
2017 production outlook Net production* MBOED 4-9% growth Estimated impact of 2017 asset without 2017 asset sales uncertainties sales in 2017 Shale Other MCPs & tight 2016 asset sales Base 50-100 MBOED decline Gorgon &…
Asset sales and Upstream cash margin Proceeds Cash margin growth* billions (before tax) Percentage of total net production MMBOED 10 Divestment criteria Strategic fit Unable to compete for capital Target Receive fair value 5…
Upstream 2017 Chevron Corporation 11
Upstream portfolio Strategically positioned geography Strong, flexible portfolio Percent of total commercial reserve portfolio World class legacy assets Premier shale positions 7% 12% 0% 12% Outstanding mature assets Canada 2% 8%…
Reserves Reserve replacement 5 year reserves replacement ratio Billions of barrels of oil-equivalent ratio 11.2 4.9 11.1 95% 1 year (108% excluding (4.7) (0.3) asset sales) 98% 5 year (104% excluding 2011 Production…
Improving efficiency Deepwater Gulf of Mexico Tengiz Technology Intelligent well completions New well stimulation method 30% production increase from enhance economic recovery reduced costs 70% artificial intelligence Basin…
Gorgon / Wheatstone1 Gorgon Wheatstone 39 cargos shipped to date All modules installed Trains 1 + 2 rate stable at 200 MBOED2 Train 1 first LNG expected mid-2017 Domestic gas supply 130 MMCFD Train 2 first LNG expected 6-8 months…
Chevrons approach to the Permian Advantaged Deliberate Competitive portfolio strategy performance 2 million net acres Disciplined growth to Efficient capital execution generate attractive returns 9 BBOE resource* Reliable, low…
Quality Permian acreage position Chevron acreage Chevron operated development Chevron non-operated development Acreage by NPV* 50k / acre 600,000 20k - 50k…
Permian unconventional performance Development improvements Competitive development costs /BOE Well performance (EUR) 20 Execution efficiencies 15 Supplier optimization 10 5 Operating improvements 0 Centralized maintenance…
Permian unconventional growth Net production1 Midland & Delaware MBOED Results continue ahead 400 of expectations 350 300 250 Accelerating growth 200 150 Capital efficient 100 development for returns 50 0 2015 2016…
Leveraging Permian performance to other shale & tight assets Duvernay Vaca Muerta Appalachia Appraisal program advancing Initiated horizontal factory mode Pacing investment Best-in-class drilling; days per Horizontal well costs…
Base projects Well factories Base deepwater Asset enhancements Gulf of Thailand Focused on development of Infill drilling San Joaquin Valley existing assets Debottlenecking and Indonesia Agbami, Tahiti, Jack / St. Malo, reliability…
Jack / St. Malo Strong Stage 1 performance Total production (100%) MBOED Project delivered on time and on budget 8 wells online, and 1 more well expected in 2016 125 First year Well performance exceeding expectations production…
FGP / WPMP Final investment decision (FID) in July Wellhead Pressure Management Project Production profile (WPMP) Lower back-pressure on wells to maintain Start-up in 2022 the existing plants at full capacity FGP Future Growth…
FGP / WPMP financials 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 Accommodation building construction All figures shown are…
FGP / WPMP execution readiness Critical lessons learned incorporated into FGP / WPMP design and planning Increasing engineering Engineering 50% at FID; underground piping, electrical and maturity at FID foundations in 3D model; 85%…
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 wells…
Future opportunity queue Liard Basin Horn River Basin Rosebank Captain EOR Kitimat Duvernay LNG Marcellus TCO FGP / WPMP Utica Kurdistan Tahiti Vertical Expansion Region of Iraq Midland & Tahiti Upper Sands Development…
Downstream portfolio Fuels refining & marketing Portfolio Chemicals Integrated value chains 2015 capital employed Cost advantaged, globally positioned 35% 65% 2018 capital employed 42% 58% Chemicals & lubricants…
Strategy focused on competitive returns Deliver competitive returns and grow earnings across the value chain Improve operational excellence Grow higher return segments Petrochemicals Lubricants and additives Focused refining and…
Demand growth points to attractive segments 201525 global product demand growth 201525 global fuels demand growth Compound annual growth rate MMBD 6 Premium Base Oil Petrochemicals* 4 Additives 2 Finished Lubricants Distillate…
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