Chevron 2020 Investor Presentation February 2020 2019 Chevron Corporation
Corporate overview 2019 Chevron Corporation
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…
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…
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…
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…
2019 Performance Cash flow Generated 27B in cash flow from operations Capital budget Executed 20B organic C&E program Production Grew production 5.4%, excluding impact from asset sales Asset sales High-graded portfolio;…
Financial highlights 4Q19 2019 Earnings (6.6) billion 2.9 billion Earnings per diluted share (3.51) 1.54 Earnings / EPS (excluding special items and FX)1 2.8 billion / 1.49 11.9 billion / 6.27 Cash flow from operations / excl.…
Delivering on all four financial priorities 2019 vs. 2018 2 billions Cash CFFO capex Four financial priorities 1 Maintain and grow dividend 2 Fund capital program 1 3 Strong balance sheet Dividends 4 Return surplus cash -14.1…
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…
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,…
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…
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…
Disciplined and ratable C&E program Capital & exploratory expenditures billions 20 20 20 Flat organic C&E Low execution risk Focused on short-cycle, high-return investments 20181 2019 2 2020 budget Base FGP/WPMP Permian…
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…
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…
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…
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%…
Upstream overview 2019 Chevron Corporation
Diverse and advantaged portfolio Kaybob Duvernay Asset class liquids rich shale & tight 68 BBOE of 6P resource* TCO legacy oil position Appalachia gas shale & tight n J qu n V legacy heavy oil Gulf of Mexico strong…
Industry leading 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 Growing Chevron Competitors: BP, RDS, TOT, XOM Production…
Sustaining proven reserves 1- s c m n 5-year reserve replacement Billion BOE Billion BOE 12 12 1- 10 10 -1.1 -0.1 -0.4 1.0 44% RRR in 2019 8 8 6 6 12.1 11.4 5- 11.1 -5.1 -0.4 5.9 11.4 4 106% RRR 4 2014-2019…
2020 Production outlook Net Production MBOED U 3% Base/ without 2020 asset sales Permian other 2019 asset sales 2020 Uncertainties PZ Venezuela NOJV activity levels 3,058 External events 2019 2020 60/bbl Brent Note:…
P m nb s u c ,b u Qu s n 2.2 million total net acres / 1.7 million unconventional net acres1 80% no or low royalty Portfolio value increased 2X2 since 2017 Resource increased 5 BBOE3 in 2018 1,600 additional long laterals…
Driving value in the Permian Production versus type curves1 Development & production costs2 Average well cumulative production /BOE 30 Delaware Basin 2018 EUR 2.0 MMBOE Well performance nc sn dc b 40% 20 decrease 0 6 12 18…
Optimizing the Permian factory Capital efficient execution EUR (COOP) m n nd duc n c s s1 (COOP) 2,500 MBOE /BOE 2,000 15 1,500 Enhancing EURs 10 1,000 5 500 Coring-up to lengthen laterals 2016 2017 2018 2019 2020 2016…
Strong Permian financial performance Building a high-return business while growing free cash flow Earnings & free cash flow1 CFFO / C E R u n nc m d2 billion after-tax % 2x 6 30% 4 20% 1x 2 10% 0% 2019 2020 2023 2019…
U d d F P/WPMP c s sc du 100% B 25% 46.5 40 36.8 30 C s s m 45.2 B 20 10 Contingency Cost estimate 25% c s nc s 0 FID Engineering Fabrication Construction Schedule & Updated Other P m d s: n n n , Production profile qu…
FGP/WPMP capital outlook 100% B 10 8 6 P ks nd n n 2018 2019 4 2 0 F cus n c ns uc n 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CVX C E u d nc unc n d 25% to go 2020: 18 - 20 B 20212023: 19 - 22 B 75%…
C ff c n s uc m n z n n Aus Perth Gorgon & Wheatstone1 Maintain production reliability in 4Q 2018 NWS LNG PLANT 400 MBOED T IR PARTY P A T Increase GORGON capacity LNG PLANT 50 TCF Leverage WHEATSTONE of resource2…
Ad nc n u uf fM xc d f A c n sm n un s C nd ss s Chevron deepwater leases Ex n Producing assets and projects under development Petronius Blacktip discovery Discoveries A s Whale & Ballymore Ballymore FEE Tubu B s Blind Faith…
Positioned for organic growth with lower risk duc n 60/bb * MBOED New MCPs MCPs in execution 1.5 MMBOED O s by year-end 2023 P m n Primarily lower risk and short-cycle Existing MCP ramp-ups 2019 2020 2021 2022 2023…
Five-year production guidance Net production at 60/bbl MMBOED Ratable growth 3-4% CA R1 Lower 4-7% subsurface risk growth2 2.93 Minimal MCP execution risk 2018 2019 2021 2023 1 3-4% CAGR reflects 2018-2023.…
High return new investments R u ns n n n sm ns 60 Weighted average IRR (%) 40 Superior portfolio 20 Industry leading returns 0 0 50 100 150 Capital spend 2019-2035 ( billion) Competitors: BP, RDS, TOT, XOM Source: Wood…
Delivering results us n b f R b C E - sk, s -c c duc n Indus dn u ns n c s f 2019 Chevron Corporation 17
V c Mu Quality position Loma 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 7,500 ft Loma del Molle Norte Three prospective…
m C m n f m nc V c Mu EUR per well1 m n c ss MBOE /BOE 1,200 Three shale and tight 800 benches 20 400 15 2016 2017 2018 Well EUR increased 80%2 Well lateral length increased 50%2 Average lateral length 10 Feet 7,500…
E T V c Mu 94,000 net acres1 Legacy acreage from conventional field Three shale and tight benches proven through exploration Eight-well pilot 1,200 potential well locations2 1 Net acres are net mineral acres. 2 Gross well…
mbu n V c Mu 25,000 net acres1 Three shale and tight benches proven through exploration Four-well pilot 600 potential well locations2 Adjacent to El Trapial 1 Net acres are net mineral acres. 2 Gross well locations at…
m d M V c Mu 43,000 net acres1 Acreage 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…
Kaybob Duvernay Qu s n W f m nc 215,000 net acres1 1.4 BBOE s uc 2 EUR 1.7 MMBOE/well3 Oil Average well length 8,300 ft qu ds u d n Development costs 9/BOE4 Gas 50% liquids 40-45 s 1,500 potential well locations5 Chevron…
Kaybob Duvernay performance EUR per well1 m n c ss MBOE /BOE 2,000 1,500 15 1,000 215,000 net acres2 500 2016 2017 2018 10 Well EUR increased 70%3 A n Feet 10,000 Well lateral length increased 20%3 5 7,500 5,000…
K b b u n d m n Began development drilling in 2018 Scalable based on market conditions Flexible commercial infrastructure model Local condensate market due to oil sands diluent demand 8 Well pilot underway 2019 Chevron…
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…
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…
Lowering the carbon intensity GHG emission reduction targets Carbon sequestration Targeted reduction Began operation of Gorgon CO2 Injection Project 2016 2023 Upstream oil net GHG 5% - 10% emission intensity New Upstream…
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.…
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…
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
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…
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…
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…
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 Enables light crude processing…
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…
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…
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…
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…
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…
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…
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…
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…
Midstream overview 2019 Chevron Corporation
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…
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…
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…
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…
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…
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…
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
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…
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…
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…
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…
Appendix: reconciliation of non-GAAP measures Reported earnings to earnings excluding special items and FX FY18 1Q19 2Q19 3Q19 4Q19 FY19 Reported earnings ( millions) Upstream 13,316 3,123 3,483 2,704 (6,734) 2,576 Downstream 3,798…
Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow millions 1Q19 2Q19 3Q19 4Q19 FY 2019 Net Cash Provided by Operating Activities 5,057 8,783 7,817 5,656 27,313…
Appendix: reconciliation of non-GAAP measures ROCE ROCE excluding special items and FX millions millions FY 2019 FY 2019 Total reported earnings 2,924 Total earnings excluding special items and FX 11,888 Non-controlling…
Overview of 4Q19 special items After-tax earnings impact billions U.S. Upstream Intl Upstream Total Key Drivers Appalachia (6.5) Impairments & Big Foot (1.5) Kitimat (1.6) (10.4) Capital allocation Write-offs Other (0.6)…
Appendix: overview of 4Q19 special items billions Exploration expense Income from equity DD&A (B/T) Deferred income tax OPEX (B/T) (B/T) affiliates (B/T) 4Q reported 16.4 (3.0) 7.2 0.3 0.5 Impairments & 12.2 (2.8) 0.3 0.0…
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