first quarter 2016 earnings conference call and webcast Pat Yarrington Vice President and Chief Financial Officer Joe Geagea Executive Vice President, Technology, Projects and Services Frank Mount General Manager, Investor…
Cautionary statement CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation of Chevron Corporation contains…
Key messages Maintain and grow dividend is the priority Improve free cash flow by: Reducing capital and operating spend Growing volume and margin Use strong balance sheet to complete projects under construction Positioned to…
1Q16 financial highlights Reported earnings (0.7) billion Reported earnings per diluted share (0.39) Earnings / EPS excluding special items and FX (0.2) billion / (0.11) Cash from operations 1.1 billion Debt ratio (as of…
(1) 1Q16 sources and uses of cash billions Cash from operations 10 Upstream in line with oil price sensitivity and downstream continues cash contribution 2.0 Non-ratable use of cash 0.1 0.1 5 Working capital Pension…
Chevron earnings 1Q16 vs. 1Q15 millions Upstream Downstream Other Upstream Special 20/BBL decline in Brent items* + Higher volumes + Lower operating and FX* exploration expenses -755 2,567 Realizations Downstream -899…
Chevron earnings 1Q16 vs. 4Q15 millions Upstream Downstream Other Upstream Special 9/BBL decline in Brent items* FX* Downstream Realizations Lower refining margins -365 + Lower operating expenses -588 + Trading results…
Worldwide net oil & gas production 1Q16 vs. 4Q15 MBOED Major Shale & Price & cost Gorgon, Chuandongbei, Turnarounds tight capital recovery Base/ Moho Nord and Lianzi projects Other -5 start-ups / ramp-ups 25 -18 11 -20…
Worldwide net oil & gas production 1Q16 vs. 1Q15 MBOED Price & Shale cost PZ Jack / St. Malo, Lianzi, Bibiyana Major recovery shut-in capital & tight expansion and Moho Nord projects 16 Base/ ramp-ups 37 Other 38 -76…
Spend momentum Total capital & exploratory spend OPEX / SG&A Rolling four-quarter average Rolling four-quarter average billions billions Responsive to 12 8 market conditions 2014 C&E lower by -19%* 2014 Opex decline by -6%*…
Cost and procurement activities Sustainable actions Examples of efficiency gains Thailand drilling efficiency Average days per 10,000 feet drilled Rushmore Benchmarking Organizational activities 4,000 through 1Q 2016 ----- ----- On…
Gorgon First production and cargo in March Reached rate 90 MBOED Repairs nearing completion Expect to restart production in May Train 1 ramp-up and Trains 2 & 3 start-up timing per prior guidance 2016 Chevron…
Wheatstone All 9 wells completed Structural, piping and cabling work progressing at plant site Reaffirm first LNG outlook mid-2017 12 of 24 Train 2 process modules delivered to site 2016 Chevron Corporation 13
Other 2016 start-ups Alder First production expected 2H 2016 Chuandongbei Trains 1 and 2 online Expect Train 3 start- Mafumeira Sul up in 2Q 2016 All four platforms installed Hook-up & commissioning ongoing First production…
Asset sales update In public domain asset sales 2016 2017 target 5 -10 billion Western Canada gas storage facilities Divestment criteria KLM pipeline Myanmar Receive fair value Gulf of Mexico shelf Hawaii downstream…
Improving free cash flow Cash flow after dividends* (including asset sales) billions 10 Cash flow from operations TCO Financing/ Reduced spend DS&C/ Asset Sales 5 Upstream Other Price recovery 0 Further flexibility 2017*…
Questions Answers 2016 Chevron Corporation 17
Appendix: reconciliation of non-GAAP measures Reported earnings to earnings excluding special items and FX 1Q15 2Q15 3Q15 4Q15 1Q16 Reported Earnings (MM) 2,567 571 2,037 (588) (725) Diluted Weighted Avg. Shares Outstanding (000)…
Appendix U.S. upstream earnings: 1Q16 vs. 4Q15 millions Absence of 4Q15 impairments and project suspensions -850 Impairments/ 9/BBL decline in WTI Suspensions Exploration Other Opex Realizations -1,954 90 54 Lower…
Appendix International upstream earnings: 1Q16 vs. 4Q15 millions Realizations 9/BBL decline in Brent 593 Unfavorable FX swing in Canada, Venezuela, Europe FX and Australia -575 Tax/Other -609 -390 -237 4Q15 1Q16…
Appendix U.S. downstream earnings: 1Q16 vs. 4Q15 millions Lower refining margins Margins Impairment on asset held for sale in Hawaii Impairments -160 Other 496 -110 21 247 4Q15 1Q16 Earnings Earnings 2016 Chevron…
Appendix International downstream earnings: 1Q16 vs. 4Q15 millions Margins Other Weaker Asian refining margins Opex Absence of unfavorable 4Q15 Timing effects 58 timing effects 80 Lower operating expenses 515 488 -285…
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