Chevron 2017 Investor presentation June 2017 2017 Chevron Corporation
Key messages Growing free cash flow Focused on improving returns Realizing value from advantaged portfolio Image: Gorgon 2017 Chevron Corporation 3
Operational excellence Days away from work rate Indexed Tier 1 and Tier 2 Loss of Containment Basis: 2012 = 100 0.10 100 80 0.05 Industry 60 leading 40 1 1 1 performance 20 1 2012 2013 2014 2015 2016 2012 2013…
1Q17 financial highlights Earnings 2.7 billion Earnings per diluted share 1.41 Earnings / EPS excluding special items and FX* 2.3 billion / 1.23 Cash flow from operations / excluding working capital 3.9 billion / 4.8 billion…
Cash margin per barrel Upstream cash margin per barrel1 Downstream cash margin per barrel2 per BOE per BBL 50 6 1 40 1 1 4 30 2 4 1 20 1 2 5 10 2013 2014 2015 2016 2013 2014 2015 2016 CVX ranking relative to…
Financial priorities remain unchanged Maintain and 29 consecutive years of annual dividend payout growth grow dividend 10-year compound annual growth rate at 8% Fund capital program Expected C&E range of 17-22 billion for future…
2017 cash flow balancing Cash flow after dividends1 (including asset sales) billions 5 Price Higher upstream 2017 upside 50/bbl margins and volumes 0 Asset sales / other Absence of TCO loan Absence of TCO Loan Lower and…
Free cash flow going forward Cash flow after dividends* (including asset sales) billions 14 12 10 Free cash flow 70/bbl range increase at 50/bbl 8 6 Asset sales 60/bbl Peer leading FCF range 4 growth oil price…
Production outlook Projected net production MMBOED Growth 4-9% production growth in 2017 without asset sales* Major capital projects Shale and tight 3.0 Uncertainties / timing Divestments Price effects Status of PZ 2.59…
Growing upstream operating cash margin Projected operating cash margin* per BOE 30 New barrels 70/bbl accretive 60/bbl Divestment of 20 lower margin barrels 50/bbl Continuous 50/bbl 50/bbl improvement in 10 cost structure…
Spend reductions Total capital & exploratory OPEX and SG&A Quarterly Quarterly billions billions 12 2017 C&E is trending 8 10 below guidance 2014 average vs. 1Q 2017: -56% 7 8 6 6 OPEX reductions continue to be realized…
C&E program Total capital & exploratory billions 45 40 35 Sustained low spend 30 through 2020 25 17-22 19.8 20 15 At flat 50/bbl, spend 10 near bottom of range 5 2014 2015 2016 2017 20182020 budget guidance…
C&E reprioritization & optimization Percentage of total capital & exploratory 100 Exploration / other 75% of 2017 spend TCO FGP / WPMP 75 generates cash Gorgon / Wheatstone within two years CPChem cracker 50 Other 2017 / 2018…
Asset sales program(1) Proceeds billions (before-tax) Target 5-10 10 In public domain Bangladesh(2) Canada downstream(2) GOM Shelf South Africa(2) 5 Indonesia geothermal 2.1 in 1Q17 2.9 2016 YTD 2.8 in 2016…
Appendix: reconciliation of non-GAAP measures Reported earnings to earnings excluding special items and FX 1Q16 2Q16 3Q16 4Q16 1Q17 Reported earnings (MM) Upstream (1,459) (2,462) 454 930 1,517 Downstream 735 1,278 1,065 357 926…
Upstream 2017 Chevron Corporation
Focusing on returns Expanding cash and earnings margins Effectively allocating capital High-grading the portfolio Image: Sonam platforms 2017 Chevron Corporation 20
Improving upstream performance Increasing cash inflows Decreasing cash outflows Net production Upstream capital & exploratory MMBOED billions 4-9% growth Increasing 40 production with 30 20 2.6 higher cash 10 2016 2017 2018…
Resources to production Resources1 Execution 10-year resource replenishment: 171% Increasing engineering maturity at FID BBOE 80 26.1 67.8 Strengthening design assurance 61.0 40 (9.6) (9.7) Optimizing contracting strategy…
Diverse portfolio Maturity Resources New infrastructure Base business Geography Asset class 68 BBOE of 6P resource1 TCO LNG Heavy oil Permian Deepwater Shale & tight Gorgon Conventional Wheatstone Legacy…
Gorgon / Wheatstone(1) Gorgon Wheatstone Strong 2017 performance Train 1 - Start-up of Gorgon field and train 3 - Commissioning underway Moving forward - Start-up mid-2017 - Start-up of additional equipment Train 2 - Building…
Australian gas position Carnarvon Basin Long-term cash generator North West Shelf Project Optimization and debottlenecking Gorgon of our 15.8 MMTPA capacity Project Wheatstone Project Monetize 50 TCF* resource through…
Tengiz Base business FGP / WPMP* Record production in 2016 2 drilling rigs operating on multi well pads Outstanding reliability Site construction ramping up Strong earnings and cash generation Port progress on plan Exceptional…
Permian Quality position Midland & Delaware acreage by NPV4 2 million net acres1 85% no or low royalty Ramping up to 20 rigs 9.3 BBOE resource2 by year end 2018 50k/acre 600,000 20k Free cash flow 50k/acre by…
Quality Permian acreage position(1) Chevron acreage Chevron operated development Chevron non-operated development (1 ) Acreage position as of October 28, 2016. 2017 Chevron Corporation 28
Permian performance Development & production costs1 /BOE 30 30% decrease 20 Demonstrating competitive 10 performance 0 2015 2016 Company operated Non-operated Comparable Midland well performance Historical completions2…
Permian support R O O S E VE LT Cushing CH AV ES COCHRAN HOCKLEY LUBBOCK CROSBY DICKENS Supply Chain YOAKUM TERRY LY N N GARZA KENT EDDY LEA Leveraging global scale Midland D AW S ON BORD EN SCU RRY Staggered…
Permian(1) Midland and Delaware base case(2) Net MBOED 500 Accelerated pace of development 450 400 20-35% CAGR 350 Competitive cost and recovery 300 250 200 Superior royalty position 150 100 Realize near-term value through…
Portfolio strength underpinned by base assets 2017 base plus shale declines 2% 2020 base* plus shale grows 1% Lower risk, short-cycle investments Diverse opportunities with new base assets Image: Kern River Field *Includes…
Base business continuous improvement Thailand well factory Driving efficiencies Development costs /BOE Deploying capital at the 20 15 right time 10 5 0 2014 2015 2016 Utilizing existing Operating costs infrastructure…
Resources for the future Norway Barents Liard/ Horn River AOSP Low holding cost Tengiz Marcellus Partitioned Midland & GOM DW Zone Options across Delaware Basins Mexico DW Venezuela Thailand geographies and five Nigeria…
Downstream & Chemicals 2017 Chevron Corporation
Downstream portfolio Fuels refining & marketing Lubricants & additives Petrochemicals Integrated value chains Globally positioned Advantaged feed and scale Steady growth, strong margins Low capital, high return Consistent cash…
Strategy focused on leading returns Grow earnings across the value chain and make targeted investments to lead the industry in returns World-class operational excellence Drive earnings across the feedstock-to-customer value…
Value chains US West Coast US Gulf Coast Asia Pacific Anchor markets: Anchor markets: Anchor markets: 1 brand share in Western U.S Strong Gulf Coast / SE market position Asia growth markets Latin America integration Leading brand in…
Investing to strengthen the fuels value chain Richmond Refinery Singapore Refining Co. Salt Lake Refinery Modernization Clean Mogas & Cogeneration Alkylation Retrofit Improves safety, efficiency, Increases capability to produce…
Chevron Phillips Chemical USGC petrochemicals project Overview 1,500 kMTA ethylene, Cedar Bayou, Texas 1,000 kMTA polyethylene, Old Ocean, Texas 500 kMTA HDPE, 500 kMTA LLDPE Advanced proprietary technology Progress…
LNG outlook 2017 Chevron Corporation
Global LNG outlook Supply and demand MTPA 500 Emerging market demand growth continues 400 Supply opportunity Intl. Under Construction Europe to provide swing 300 U.S. Under Pacific Basin Construction demand due to market…
Global LNG supply LNG supply MTPA 500 Australia leads current wave of supply growth 400 300 U.S. underpins next wave 200 Competition for 100 supply opportunities will emerge Existing supply 20172018 20192022 20232025…
Gorgon & Wheatstone LNG customers Term LNG contract portfolio Long term oil-linked Spot contracts Increase in portfolio volumes provides flexibility Term contract Shipping provides access to total LNG value chain Source:…
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