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June 2019 Investor Presentation – Chevron Corp

Chevron Corp · Jun 30, 2019 · 83 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2019 Investor Presentation – Chevron Corp – slide 1
    Chevron 2019 Investor Presentation June 2019 2019 Chevron Corporation
  2. June 2019 Investor Presentation – Chevron Corp – slide 2
    Corporate overview Mike Wirth Chairman and Chief Executive Officer 2019 Chevron Corporation
  3. June 2019 Investor Presentation – Chevron Corp – slide 3
    Positioned to win in any environment Advantaged portfolio delivers strong cash flow Unmatched balance sheet and low breakeven Disciplined, returns-driven capital allocation Superior cash returns to shareholders Chevron…
  4. June 2019 Investor Presentation – Chevron Corp – slide 4
    Leading operational excellence Oil spills to land or water2 Thousands of barrels Industry leading Process safety workforce safety improvement CVX ranking relative to competitors Competitors: BP, RDS, XOM Days away from…
  5. June 2019 Investor Presentation – Chevron Corp – slide 5
    Growing demand for our products Global energy demand Global liquids demand MMBOED MMBD Supply gap 10 trillion 88MMBD Renewables & hydro Existing supply Decline with no investment Nuclear Coal Global petchem demand Million…
  6. June 2019 Investor Presentation – Chevron Corp – slide 6
    Advantaged portfolio a key differentiator Upstream Downstream & Chemicals Leading adjusted EPB 14.451 Leading adjusted EPB 2.661 7.4% production growth Highest complexity refinery system (NCI: 12.7) Unit production cost…
  7. June 2019 Investor Presentation – Chevron Corp – slide 7
    Financial highlights 1Q19 Earnings 2.6 billion Earnings per diluted share 1.39 Earnings / EPS (excluding special items and FX)1 2.8 billion / 1.47 Cash flow from operations / excl. working capital1 5.1 billion / 6.3 billion…
  8. June 2019 Investor Presentation – Chevron Corp – slide 8
    2019 cash flow Cash flow from operations Free cash flow excluding excluding working capital1 working capital1 billions /BBL billions /BBL 8 80 6 80 6 60 Delivering 2019 cash 4 60 generation in line with 4 40 guidance 2…
  9. June 2019 Investor Presentation – Chevron Corp – slide 9
    Looking ahead 2Q 2019 outlook Upstream Full year 2019 production 4-7% growth from 2018 (excluding asset sales) Closed sale of Denmark assets TCO co-lending continues Downstream Anticipated close of Pasadena refinery purchase…
  10. June 2019 Investor Presentation – Chevron Corp – slide 10
    Upside leverage and downside resilience Grow production Returns-driven & sustain margins capital allocation High Low price environment price environment Lower our cost structure Competitive dividend growth Competitive dividend…
  11. June 2019 Investor Presentation – Chevron Corp – slide 11
    Strong reserves replacement Five-year reserve replacement ratio Reserves to production ratio 2013-2017 Years Reserves replacement through the price cycle Prudent and stable reserves to production Competitors: BP, RDS,…
  12. June 2019 Investor Presentation – Chevron Corp – slide 12
    Permian value has more than doubled Permian resource1 Permian unconventional portfolio value2 BBOE Resource 16.2 BBOE up from 9.3 BBOE +6.9 2X Value drivers Land optimization Well performance Technology 1 Netunrisked…
  13. June 2019 Investor Presentation – Chevron Corp – slide 13
    Portfolio high-grading continues Upstream assets1 Divestment criteria Strategic alignment San Joaquin Mature2 Denmark Valley Resource potential Relative economics U.K. Nigeria Central North Attractive value Azerbaijan…
  14. June 2019 Investor Presentation – Chevron Corp – slide 14
    Best positioned for price uncertainty Net debt ratio1 2019 cash flow breakeven2 2018 /bbl Brent Industry-leading 13.5% balance sheet 51 Lowest breakeven Brent volatility /bbl 150 100 50 Jan-08 Jan-10 Jan-12…
  15. June 2019 Investor Presentation – Chevron Corp – slide 15
    Disciplined and ratable C&E Total capital & exploratory expenditures1 Ratable billions 18-20 19-22 Short-cycle, 20 20 high return Low execution risk 70% of 2019 spend delivers cash flow within 2 years 2 1 Assumes…
  16. June 2019 Investor Presentation – Chevron Corp – slide 16
    Disciplined C&E program Total capital & exploratory expenditures billions Flat with 2018 20.1 20 2.0 Increases in shale & tight 4.3 Low execution risk 0.9 1.6 3.6 5.1 70% of spend delivers 2.5 cash within 2 years *…
  17. June 2019 Investor Presentation – Chevron Corp – slide 17
    Efficient capital deployment generates superior returns Cash capex over CFFO1 CFFO ROCE2 at 60/bbl Average % 2018-2021 % 2017-2023 Price upside Low capital intensity Portfolio, cost & Margin other Improving returns…
  18. June 2019 Investor Presentation – Chevron Corp – slide 18
    Growing upstream cash generation Net production at 60/bbl Upstream cash margin2 at 60/bbl MMBOED /BOE Production growth 5-year: 3-4% CAGR1 Sustained cash margins 1 3-4% CAGR reflects 2018-2023. Includes the effect of expected…
  19. June 2019 Investor Presentation – Chevron Corp – slide 19
    2019 cash generation covers all financial priorities Sources and uses of cash1 in 2019 at 60/bbl billions Cash framework balanced…
  20. June 2019 Investor Presentation – Chevron Corp – slide 20
    Returning more cash to shareholders d 5-year average shareholder distributions as % of CFFO and asset sales 2009-2023 Returning Avg. Brent higher percentage of 60 cash flow to shareholders Avg. Brent 64 Avg. Brent 95…
  21. June 2019 Investor Presentation – Chevron Corp – slide 21
    Chevron offers a winning value proposition Disciplined financial priorities Competitive advantage Shareholder returns Maintain and grow dividend Strong free cash Unmatched flow balance sheet Fund capital program Advantaged 6%…
  22. June 2019 Investor Presentation – Chevron Corp – slide 22
    Upstream overview 2019 Chevron Corporation
  23. June 2019 Investor Presentation – Chevron Corp – slide 23
    iverse and advanta ed portfolio Kaybob uvernay Asset class liquids rich shale & tight 68 BBOE of 6P resource* TCO legacy oil position hale Appalachia ti ht gas shale & tight an Joaquin Valley legacy heavy oil ulf of Mexico…
  24. June 2019 Investor Presentation – Chevron Corp – slide 24
    Industry leadin performance Upstream C E Production cost1 billions /BOE 30 40 Capital 20 20 discipline 10 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 rowin Chevron Competitors: BP, RDS, TOT, XOM Production…
  25. June 2019 Investor Presentation – Chevron Corp – slide 25
    rowin reserves and resources Reserves1 Resources2 5-year reserve replacement 10-year resource replenishment BBOE BBOE 6.1 12.1 136% RRR 22.6 6 .8 11.2 in 2018 63.2 117% RRR (9.8) five-year 8.2 4.9 0.3 147%…
  26. June 2019 Investor Presentation – Chevron Corp – slide 26
    Permianbi er resource, better value Quality position 2.2 million total net acres / 1. million unconventional net acres1 80% no or low royalty Portfolio value increased 2X2 since 201 Resource increased 5 BBOE3 in 2018 1,600…
  27. June 2019 Investor Presentation – Chevron Corp – slide 27
    rivin value in the Permian Production versus type curves1 evelopment production costs2 Average well cumulative production /BOE 30 elaware Basin 2018 EUR 2.0 MMBOE Well performance increasin predictable 40% 20 decrease 0 6 12…
  28. June 2019 Investor Presentation – Chevron Corp – slide 28
    Permian Production Delivering guidance M d nd nd B s n* Net MBOED 1Q duc n 391 MBOE u 1,000 139 MBOE f m 1Q 2018 750 900 MBOE n 2023 20 operated rigs 500 -10 net OJV rigs 250 2016 2017 2018 2019 2020 2021 2022…
  29. June 2019 Investor Presentation – Chevron Corp – slide 29
    Other emer in shale ti ht assets* Ar entina Canada Appalachia oma Campana uvernay Marcellus / Utica 48,000 net acres 215,000 net acres 890,000 net acres 0.4 BBOE resource 1.4 BBOE resource 2.4 BBOE resource EUR 1.0 MMBOE/well EUR 1.…
  30. June 2019 Investor Presentation – Chevron Corp – slide 30
    TCO 2019 Chevron Corporation 9
  31. June 2019 Investor Presentation – Chevron Corp – slide 31
    F P/WPMP pro ressin towards first oil On track for first oil in 2022 2019 focus: Module fabrication Construction productivity Energize core substation Commission gathering system 2019 Chevron Corporation 10
  32. June 2019 Investor Presentation – Chevron Corp – slide 32
    Capital efficient resource monetization in Australia Perth or on Wheatstone1 Maintain production reliability in 4Q 2018 W P A T 400 MBOE T IR PARTY P A T Increase OR O capacity P A T 50 TCF evera e W EAT TO E of…
  33. June 2019 Investor Presentation – Chevron Corp – slide 33
    Advancin our deepwater ulf of Mexico portfolio1 Chevron deepwater assets Chevron deepwater assets Chevron deepwater assets Chevron deepwater leases Chevron leases acquired in 2018 Producing assets and 2018 projects under…
  34. June 2019 Investor Presentation – Chevron Corp – slide 34
    Positioned for or anic rowth with lower risk ew production at 60/bbl* MBOED ew MCPs MCPs in execution 1.5 MMBOE Other shale ti ht by year-end 2023 Permian Primarily lower risk and short-cycle Existin MCP ramp-ups 2019…
  35. June 2019 Investor Presentation – Chevron Corp – slide 35
    Five-year production uidance et production at 60/bbl MMBOED Ratable rowth 3-4% CA R1 ower 4-7% subsurface risk rowth2 2.93 Minimal MCP execution risk 2018 2019 2021 2023 1 3-4% CAGR reflects 2018-2023. Includes…
  36. June 2019 Investor Presentation – Chevron Corp – slide 36
    i h return new investments Returns on new investments 60 Weighted average IRR % 40 uperior portfolio 20 Industry leadin returns 0 0 50 100 150 Capital spend 2019-2035 billion Competitors: BP, RDS, TOT, XOM Source: Wood…
  37. June 2019 Investor Presentation – Chevron Corp – slide 37
    eliverin results ustainable portfolio Ratable C E ower-risk, short-cycle production rowth Industry leadin returns rowin cash flow 2019 Chevron Corporation 16
  38. June 2019 Investor Presentation – Chevron Corp – slide 38
    Upstream appendix Vaca Muerta / Kaybob uvernay / Appalachia 2019 Chevron Corporation 1
  39. June 2019 Investor Presentation – Chevron Corp – slide 39
    Vaca Muerta Quality position oma Campana 210,000 net acres1 48,000 net acres1 0.4 BBOE resource2 El Trapial in Loma Campana EUR 1.0 MMBOE/well3 Narambuena Average well length ,500 ft Loma del Molle Norte Three prospective…
  40. June 2019 Investor Presentation – Chevron Corp – slide 40
    oma Campana performance Vaca Muerta EUR per well1 evelopment costs MBOE /BOE 1,200 Three shale and ti ht 800 benches 20 400 15 2016 2017 2018 Well EUR increased 80%2 Well lateral length increased 50%2 Avera e lateral len…
  41. June 2019 Investor Presentation – Chevron Corp – slide 41
    El Trapial Vaca Muerta 94,000 net acres1 e acy acrea e from conventional field Three shale and ti ht benches proven throu h exploration Ei ht-well pilot 1,200 potential well locations2 1 Net acres are net mineral acres. 2…
  42. June 2019 Investor Presentation – Chevron Corp – slide 42
    arambuena Vaca Muerta 25,000 net acres1 Three shale and ti ht benches proven throu h exploration Four-well pilot 600 potential well locations2 Adjacent to El Trapial 1 Net acres are net mineral acres. 2 Gross well…
  43. June 2019 Investor Presentation – Chevron Corp – slide 43
    oma del Molle orte Vaca Muerta 43,000 net acres1 Acrea e acquired in 2017 Exploration planned 150 potential well locations2 Adjacent to El Trapial 1 Net acres are net mineral acres. 2 Gross well locations at…
  44. June 2019 Investor Presentation – Chevron Corp – slide 44
    Kaybob uvernay Quality position Well performance 215,000 net acres1 1.4 BBOE resource2 EUR 1. MMBOE/well3 Oil Average well length 8,300 ft iquids value driven Development costs 9/BOE4 Gas 50% liquids 40-45 wells 1,500…
  45. June 2019 Investor Presentation – Chevron Corp – slide 45
    Kaybob uvernay performance EUR per well1 evelopment costs MBOE /BOE 2,000 1,500 215,000 net acres2 15 1,000 500 2016 2017 2018 10 Well EUR increased 0%3 Avera e lateral len th Feet 10,000 Well lateral length increased…
  46. June 2019 Investor Presentation – Chevron Corp – slide 46
    Kaybob uvernay development Be an development drillin in 2018 calable based on market conditions Flexible commercial infrastructure model ocal condensate market due to oil sands diluent demand 8 Well pilot underway 2019…
  47. June 2019 Investor Presentation – Chevron Corp – slide 47
    Appalachia Quality position Well performance 890,000 net acres1 2.4 BBOE resource2 EUR 2.6 MMBOE/well3 Average well length 8,600-10,000 ft Two shale and Wet ti ht benches Development costs4 4.20- 5. 0/BOE gas Dry Exploration…
  48. June 2019 Investor Presentation – Chevron Corp – slide 48
    Appalachia performance EUR per well1 evelopment costs 3,000 MBOE /BOE 10 2,000 1,000 Asset optimization with factory restart 2016 2019 est Wet gas Dry gas Well EUR increase 60%2 5 Avera e lateral len th Feet Lateral…
  49. June 2019 Investor Presentation – Chevron Corp – slide 49
    Appalachia development Pipeline infrastructure build out improvin price differentials vs. enry ub Re-started development drillin in 2018 ew basis of desi n with: Longer laterals Improved frac efficiency Higher density…
  50. June 2019 Investor Presentation – Chevron Corp – slide 50
    Digital innovation drives business value Revenue Cost Reliability Safety Improve delivery Reduce costs Manage our global assets Improve safeguards of cash and earnings and increase efficiencies more reliably in high risk…
  51. June 2019 Investor Presentation – Chevron Corp – slide 51
    Investing in a broader energy portfolio Future GHG intensity Partnerships Renewables energy fund reduction Seed funds for Performance tied Collaborative industry efforts; Lowering the carbon intensity breakthrough technologies…
  52. June 2019 Investor Presentation – Chevron Corp – slide 52
    Results the right way TCFD-aligned report Human energy vision Robust At the heart of The Chevron Way is our vision to be the disclosure global energy company most admired for its people, partnership and performance.…
  53. June 2019 Investor Presentation – Chevron Corp – slide 53
    Chevron poised to deliver winning performance Advantaged Production growth Cash flow Return cash portfolio with low execution risk expansion to shareholders Increased Permian Grow 2018-2023 Updated C&E range of resources from…
  54. June 2019 Investor Presentation – Chevron Corp – slide 54
    Downstream & Chemicals 2019 Chevron Corporation
  55. June 2019 Investor Presentation – Chevron Corp – slide 55
    Downstream & chemicals portfolio Fuels refining & marketing* Petrochemicals Lubricants & additives Focused, Advantaged feed, Strategic positions serving regional optimization scale and technology global markets Refinery…
  56. June 2019 Investor Presentation – Chevron Corp – slide 56
    Strategy focused on leading returns Sustain world-class operational excellence Grow earnings across the value chain Target investments Lead the industry in returns 2019 Chevron Corporation 3
  57. June 2019 Investor Presentation – Chevron Corp – slide 57
    Strong financial performance Reported earnings Adjusted earnings per barrel1,2 billions /bbl 6 10 1 5 2.66 3 1 1 1 1 2014 2015 2016 2017 2018 15.3% 24.8% 13.0% 14.1% 13.8% 2014 2015 2016 2017 2018 Adjusted ROCE…
  58. June 2019 Investor Presentation – Chevron Corp – slide 58
    Global product demand Demand growth, 20192023 Compound annual growth rate Global economic Fuels LPG/Naphtha growth Distillate drives product demand Gasoline Petrochemicals Petrochemicals* Olefins grow faster than fuels…
  59. June 2019 Investor Presentation – Chevron Corp – slide 59
    Well positioned for IMO 2020 Conversion capacity and complexity Conversion to crude capacity ratio Nelson complexity index 100% 15 Conversion to crude capacity ratio Nelson complexity index Complex refiners 10 advantaged…
  60. June 2019 Investor Presentation – Chevron Corp – slide 60
    Major capital projects Evaluation / FEED Under construction Commission / start-up Chevron Phillips Chemical Co. Salt Lake refinery Richmond refinery USGC II ISOALKY plant Modernization Chevron Phillips Chemical Co. Oronite Middle…
  61. June 2019 Investor Presentation – Chevron Corp – slide 61
    Pasadena refinery acquisition Scope 110 MBD Houston Ship Channel terminal 5.6 MM bbls storage tanks 143 acres vacant land Explorer Pipeline Strategic fit Permian Colonial Pipeline Pascagoula Eagle Ford Enables light crude…
  62. June 2019 Investor Presentation – Chevron Corp – slide 62
    Integrated fuels value chains U.S. West Coast U.S. Gulf Coast Asia Pacific 1 brand share in Western U.S. ALeading leadingbrand brandin inCentral CentralAmerica America Long-standing partnerships Growing retail in Mexico Top net…
  63. June 2019 Investor Presentation – Chevron Corp – slide 63
    Leading refinery performance1 Utilization Energy efficiency Net cash margin Percent Index Index 90% 120 35 2 1 1 2 5 4 1 2 4 2 2 2 2 2 1 70% 80 2008 2010 2012 2014 2016 2018 2008 2010 2012 2014 2016 2018 2008 2010…
  64. June 2019 Investor Presentation – Chevron Corp – slide 64
    Fuels marketing initiatives Americas Asia Mobile e-pay On track for 400 branded sites Plan to grow by up to 300 PayPal and Honda in Mexico by 2020 branded sites in partnerships in U.S. Southeast Asia by 2022 Mexico terminals…
  65. June 2019 Investor Presentation – Chevron Corp – slide 65
    Renewable fuels Integrated value chain Biojet SFO Sustainable Aviation Fuel New and emerging Biodiesel and technologies ethanol blending Carbon Engineering CO2 capture to low Modest investment Biofuels manufacturing carbon…
  66. June 2019 Investor Presentation – Chevron Corp – slide 66
    Advantaged petrochemicals portfolio Petrochemical capacity, 2019* Million metric tonnes per year 7 Texas Qatar Saudi Arabia North America Middle East Asia Pacific Olefins / Polyolefins Aromatics Olefins / Polyolefins…
  67. June 2019 Investor Presentation – Chevron Corp – slide 67
    Strong petrochemical market fundamentals Ethylene cash cost advantage, 20192023* Polyethylene demand growth, 2018 to 2030 per metric tonne kg per capita 60 500 U.S. 40 China EU 250 20 Population, million 2030 300…
  68. June 2019 Investor Presentation – Chevron Corp – slide 68
    Chevron Phillips Chemical performance Utilization Reported earnings* Percent billions 100% World class assets 4 Advantaged feedstock Proprietary technologies 2 High operating rates 80% Sustainability focus 2013 2014…
  69. June 2019 Investor Presentation – Chevron Corp – slide 69
    Lubricants and additives activities Renewable base oil Finished lubricants Additives Equity investment in Novvi LLC Delo, 67% of first fill trucks Portfolio to address IMO 2020 in North America Technology partnership Singapore…
  70. June 2019 Investor Presentation – Chevron Corp – slide 70
    Midstream overview 2019 Chevron Corporation
  71. June 2019 Investor Presentation – Chevron Corp – slide 71
    Permian value chain strategy Waha Spot sales Katy and Agua Dulce Term sales Maximize earnings Firm transportation Domestic demand Exports Residue gas for the enterprise Gas processing Advantaged commercial agreements plant…
  72. June 2019 Investor Presentation – Chevron Corp – slide 72
    Permian takeaway capacity Crude oil strategy Sufficient transport capacity of operated + non-operated take-in-kind production through 2019 New industry capacity expected to eliminate Midland to U.S. Gulf Coast bottlenecks by…
  73. June 2019 Investor Presentation – Chevron Corp – slide 73
    Permian takeaway capacity NGL strategy Sufficient transportation New Mexico and fractionation coverage for forecasted NGL equity production through 2019 Delaware Basin Midland Texas Basin Maximize physical connectivity and…
  74. June 2019 Investor Presentation – Chevron Corp – slide 74
    Permian takeaway capacity Natural gas strategy R O O S E VE LT COCHRAN HOCKLEY LUBBOCK CROSBY DICKENS CH AV ES YOAKUM TERRY LY N N GARZA KENT 100% firm plant processing & takeaway LEA EDDY capacity to Waha…
  75. June 2019 Investor Presentation – Chevron Corp – slide 75
    Midstream plans for other unconventional plays Argentina Canada Appalachia Loma Campana Duvernay Marcellus / Utica Infrastructure and market Long-term agreements for gas 100% transportation coverage development still in early stages…
  76. June 2019 Investor Presentation – Chevron Corp – slide 76
    LNG value chain strategy Focus on cost competitive opportunities Reliable operations for enhanced cash generation Leverage strong customer base in Asia Pacific marketplace Optimized Shipping and Trading strategy 2019…
  77. June 2019 Investor Presentation – Chevron Corp – slide 77
    Supply & Trading strategy Flow Optimize Trade Focus on flow assurance and physical optimization Leverage expertise to add value across the value chain 2019 Chevron Corporation 8
  78. June 2019 Investor Presentation – Chevron Corp – slide 78
    Upstream Major Capital Projects (1) Facility Design Capacity (2) Liquids Gas Current Project Location Operator WI % MBPD MMCFPD Phase Startup (3) Clair Ridge UK Other 19.4 120 100 Production 2018 Big Foot United States Chevron 60.0…
  79. June 2019 Investor Presentation – Chevron Corp – slide 79
    Appendix: reconciliation of Chevrons adjusted earnings 1 Includesasset impairments & revaluations, certain non-recurring tax adjustments & environmental remediation provisions, severance accruals, and any other special items. 2…
  80. June 2019 Investor Presentation – Chevron Corp – slide 80
    Appendix: reconciliation of Chevrons adjusted earnings 1 Includes asset impairments & revaluations, certain non-recurring tax adjustments & environmental remediation provisions, severance accruals, and any other special items. 2…
  81. June 2019 Investor Presentation – Chevron Corp – slide 81
    Appendix: reconciliation of Chevrons adjusted earnings 1 Includesasset impairments & revaluations, certain non-recurring tax adjustments & environmental remediation provisions, severance accruals, and any other special items. 2…
  82. June 2019 Investor Presentation – Chevron Corp – slide 82
    Appendix: reconciliation of non-GAAP measures Reported earnings to earnings excluding special items and FX 1Q18 2Q18 3Q18 4Q18 FY 2018 1Q19 Reported earnings (MM) Upstream 3,352 3,295 3,379 3,290 13,316 3,123 Downstream 728 838…
  83. June 2019 Investor Presentation – Chevron Corp – slide 83
    Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow excluding working capital MM FY 2017 FY 2018 FY 2016 FY 2016 FY 2017 Quarterly FY 2018 Quarterly 1Q19 Quarterly Avg.*…

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