Chevron 2021 Investor Presentation February 2021 2020 Chevron Corporation
Corporate overview 2020 Chevron Corporation
Winning in any environment Advantaged portfolio Unmatched financial strength Capital discipline Superior cash returns to shareholders Sustainable value creation for stakeholders 2020 Chevron Corporation 4
Delivering on our commitment to ESG Protecting the environment Respecting human rights Board diversity and refreshment Addressing climate change Creating prosperity in communities Transparency in reporting (TCFD) Managing…
Leading operational excellence Oil spills to land or water2 Thousands of barrels Industry leading Industry leading workforce safety process safety CVX ranking relative to competitors Competitors: BP, RDS, TOT Days away…
Growing demand for our products Global energy demand Global liquids demand MMBOED MMBD 25% Renewables Supply gap & hydro 88MMBD Nuclear 9 trillion Coal Natural gas 53% Existing supply 54% Decline with no…
Increasing returns on capital ROCE ROCE excl. special items at flat 60 Brent nominal 2015 - 2019 improvement % 2019 - 2024 Strongest ROCE1 improvement Price upside since 2015 Driving to 10% Capital efficiency by 2024 Cost…
Unmatched financial strength Net debt ratio1 Dividend breakeven2 2019 2019 13% Strongest 55/bbl balance sheet Lowest dividend breakeven Competitors: BP, RDS, TOT, XOM Competitors: BP, RDS, TOT, XOM 1 Netdebt ratio is…
Delivered on post-COVID promised actions Maintain safe and reliable operations Reduce short-cycle capital Drive operating costs savings Guard balance sheet Preserve long-term value 2021 Chevron Corporation 11
Maintain safe and reliable operations People Upstream Downstream One of the safest years on record 3 MMBOED in net production 95% availability 30MM in pandemic contributions Swift reduction in rigs and activity Minimized jet…
Reduce capital and drive operating cost savings C&E expenditures Operating expenditures* billions billions 25 26 2020 C&E 20 35% lower than 2019 24 15 10 2020 opex 22 5 1B lower than 2019 0 20 2019 2020 2019 2020…
Preserve long-term value 2020-2021 investments* 1-year reserve replacement billions billion BOE 50 15 74% RRR Acquired and integrated 40 11.4 Noble Energy 1.2 11.1 10 -1.1 2021 -0.4 30 Completed fabrication for TCO…
Maintained commitment to ESG priorities Increased actions to advance a lower carbon future Sustained investments in our people and communities Continued strong governance over COVID response, strategy and shareholder…
2021 capital outlook Capital & exploratory expenditures billions Continued capital discipline 13.5 14 Includes 300MM to advance the energy transition Focused on higher returns, lower carbon 2020 2021 budget Base…
2021 Production outlook MBOED Full-year of Noble Curtailment Base Noble Other Asset sales / contracts* (70) 70 (40) Lower curtailments up to 3% growth without 2021 asset sales Base declines due to (180) 250 reduced 2020…
Looking ahead 1Q2021 outlook Full-year 2021 outlook Turnarounds/Downtime: 60 MBOED Production growth Curtailments: 40 MBOED Upstream Indonesia cost recovery entitlement: (75) MBOED vs 4Q (excl. 2021 asset sales): Up to 3% TCO…
Upside leverage and downside resilience High price Low price Leading dividend growth Competitive dividend growth Leading dividend growth Competitive dividend growth Capital discipline Disciplined C&E Flexible capital…
Upstream overview 2020 Chevron Corporation
Diverse and advantaged portfolio Kaybob Duvernay Asset class liquids rich shale & tight 71 BBOE of 6P resource* TCO legacy oil position Heavy oil LNG San Joaquin Valley legacy heavy oil Gulf of Mexico Deepwater growing…
Industry leading performance Upstream C&E Production cost1 billions /BOE Capital discipline Growing Chevron Competitors: BP, RDS, TOT, XOM Net production production Earnings per barrel MMBOED excl. special items2 /BOE…
Reducing Permian capital while improving efficiency 2Q20 update Development capital spend Lateral feet drilled per rig billions (COOP) 2 Demonstrating capital flexibility 2x 75% Continuing 1 focus on efficiency Free cash…
Expect lower near-term production 2Q20 update Midland and Delaware Basin* Net MBOED 1,000 Focused on preserving long-term value 750 500 Long-term resource outlook unchanged 250 Maintaining 2016 2018 2020 2022 2024…
TCO FGP-WPMP progressing 2Q20 update 2Q20 update Overall progress 79%, construction at 57% Module fabrication complete Remaining modules in transit All materials on site for 2020 critical path Limited procurement impacts…
TCO FGP-WPMP outlook 2Q20 update Near-term action plan 2H20 outlook Complete the final sealift Working with health experts and regulatory agencies Progress critical path construction activities Comprehensive COVID mitigation…
Focusing on operational excellence in Australia SAM20 update Net production1 MBOED Improve Growing reliability production Increase capacity 50 TCF Optimize of resource2 value chain Leader in CO2 sequestration…
Advancing our Gulf of Mexico deepwater portfolio Anchor FID Whale Ballymore Advancing 20k technology Standard facility design Possible tieback Ballymore Anchor Chevron Deepwater Assets Chevron deepwater leases Whale…
Pursuing high-impact exploration opportunities Gulf of Mexico Mexico Brazil 24 blocks awarded 2019 5 blocks / 995k net acres 11 blocks / 824k net acres 4 wells in 2020 2 wells in 2020 2 wells in 2020 infrastructure-led exploration…
A decade of sustainable production Net production1 MMBOED Organic opportunities Organic opportunities2 Additional shale & tight Partitioned Zone / Venezuela Indonesia / Thailand contracts Base Exploration success Concession…
Downstream & Chemicals 2020 Chevron Corporation
Portfolio focused on areas of strength Fuels refining & marketing Petrochemicals Lubricants & additives Focused, Advantaged feed, Strategic positions serving regional optimization scale and technology global markets Major…
Committed to improved financial performance Earnings per barrel excl. special items1 Targeted earnings improvement2 /bbl billions 1.86 Market Productivity Value chain Reliability & Turnarounds CVX ranking relative to…
Driving lower downstream operating costs Quarterly operating expenditures 2020 U.S. turnarounds Excl special items* Actual vs planned operating costs Indexed to 1Q20 Optimization 1.0 100% Scope deferred 3Q20 opex 0.9 20%…
Optimizing value chains 2020 Refining utilization1 Contracted product placement2 CVX systemwide equity basis % of HVP production 100% Safe and reliable 100% operations 75% 75% Balancing utilization with sales channels 50%…
Strengthening integrated fuels value chains U.S. West Coast U.S. Gulf Coast Asia Pacific 1 brand share in Western U.S. Optimizing across the value chain Strengthening marketing positions Pasadena South Pascagoula Korea…
Growing advantaged chemicals Project updates Competitive landscape Advanced recycling GS Caltex: Expected 5% below 1st U.S. commercial scale PE budget and mid-2021 start-up Low-cost, ethane advantage production from waste…
Fully integrated lubricants business Base oil Additives Finished lubricants Leading premium producer Leading developer & manufacturer Global marketer Group II, II+ and III Construction of China plant Ultra-low ash technology…
Increasing renewables in support of our business Renewable natural gas Renewable base oils 200MM 1st capital commitment production to-date in 3Q Renewable diesel & biodiesel Hydrogen 12 MBD Early stage expected testing…
Finance and ESG overview 2020 Chevron Corporation
Creating sustainable value Enabling human progress Robust disclosure and stakeholder engagement Protecting the environment Empowering people Getting results the right way 2020 Chevron Corporation 44
Approach to the energy transition Lower carbon intensity Increase renewables Invest in the future cost efficiently in support of our business target breakthrough technologies 2016 - 2023 Upstream targets Future energy fund Oil…
Lower cost and higher returns Operating cost savings ROCE in 2021 at flat 60 Brent nominal % 2019 - 2024 1B Run-rate opex savings1 of Price upside 1B by year-end Upstream Capital employed D/S & Other earnings…
Financial priorities unchanged Maintain and grow dividend Fund capital program Strong balance sheet Return surplus cash 2020 Chevron Corporation 47
Attractive shareholder distributions Dividend CAGR per share Percentage change 2015 - 2019 in shares outstanding 2015 - 2019 Competitive dividend growth Leading share repurchase program Total shareholder yield 7%*…
Permian value chain strategy Waha Spot sales Katy and Agua Dulce Term sales Domestic demand Firm transportation Exports Residue gas Maximize earnings for the enterprise Gas processing plant Wet gas Advantaged commercial…
Permian takeaway and export capacity Crude oil strategy New Sufficient contracted Mexico takeaway capacity through 2024 Delaware Basin Midland Texas Basin Cushing Sufficient contracted export capacity crude Houston to…
Permian takeaway and export capacity NGL strategy Sufficient contracted transportation and fractionation coverage New Mexico for NGL production through 2021 Maximize connectivity Delaware Texas Basin Midland Basin and…
Permian takeaway capacity Natural gas strategy R O O S E VE LT COCHRAN HOCKLEY LUBBOCK CROSBY DICKENS No routine flaring CH AV ES YOAKUM TERRY LY N N GARZA KENT to enable production EDDY LEA D AW S ON BORD EN SCU…
Delivering on our Gulf Coast integration plan Permian equity crude supply into Pasadena Explorer Pipeline Feedstock optimization Permian Colonial Pipeline Pascagoula with Pascagoula Pasadena Fuel supply into key…
LNG value chain strategy Driven by value, reliability, and optionality Primarily oil-linked contracts Continual optimization for evolving market conditions Gorgon & Wheatstone LNG exports 2020 Chevron Corporation 56
Chevron to acquire Noble Energy July 20, 2020 2020 Chevron. All rights reserved.
Noble Energy enhances Chevrons performance Expected to be accretive across key financial metrics* High quality assets Earnings per share Low-cost resource Free cash flow per share Attractive synergies ROCE * Projected…
Key transaction terms 100% stock consideration 0.1191 Chevron shares for each share of Noble Energy Total consideration of 10.38 per share, 12% premium based on 10-day average* Target closing in fourth quarter 2020 Subject…
High quality, complementary assets US onshore Permian Basin DJ Basin Other US Contiguous and adjacent Leverages well factory model Eagle Ford 35k net acres in Webb/Dimmit counties 92k net acres 336k net acres 55 mboed in 2019 65…
High quality, complementary assets International Eastern Mediterranean West Africa Long-lived, operated production Regional growth potential Equatorial Guinea Leviathan (39.6% WI) & Tamar (25% WI) 2 exploration blocks in Egypt…
Low cost resource strengthens the global portfolio 2019 year-end proved reserves Noble Energy (billion boe) Midstream Partners 18% increase 15…
Attractive cost synergies and flexible capital Expected run rate synergies1 2020 organic capital budget ( million, before-tax) ( billion) 300 million 25 Attractive synergy potential 20 30% decrease Flexible capital 15…
Transaction aligns with Chevrons value proposition Improved Less Resilient returns risk cash Accretive Low-cost Flexible capital on key financial metrics resource acquisition short cycle projects Competitive Maintain…
Appendix Slides 2020 Chevron Corporation
Corporate 2020 Chevron Corporation
Chevron poised to deliver winning performance at flat 60 Brent nominal Improved Less Robust Leading returns risk cash payout Grow ROCE to C&E 19 - 22B2 Adjusted FCF4 per share 7% 10% by 2024 2X by 2024 total shareholder…
Targeting 2 billion of annual improvement Cost efficiency1 Margin capture3 in 2021 in 2022 Reduce run-rate opex Focusing footprint by 5%2 Reliability Streamlining functions Improve reliability and Value chain optimize value…
Cash flow expansion at flat 60 Brent nominal Adjusted CFFO Adjusted FCF excl. working capital1 excl. working capital2 /share /share 9% CAGR in adjusted CFFO per share1 2X increase in adjusted FCF per share2 Supports…
Strong cash distribution to shareholders at flat 60 Brent nominal Cumulative sources and uses of cash (2020 - 2024) billions TCO financing Debt Asset sales & other 75 - 80B in shareholder distributions Cash capex Cash…
Upstream 2020 Chevron Corporation
Growing upstream cash generation at flat 60 Brent nominal Net production Upstream cash margin2 MMBOED /BOE Production growth 2019 - 2024: 3% CAGR1 Philippines Colombia Appalachia Growing cash margins Additional asset…
Permian continuous improvement and predictability Delaware Midland Cumulative production vs. Type curve Cumulative production vs. Type curve 2019 EUR 2.7 MMBOE 2019 EUR 1.1 MMBOE 2017 Well performance 2018 2016 increasing &…
Optimizing the Permian factory Capital efficient execution Cumulative production vs. type curve1 Lateral feet drilled per rig2 2019 EUR 2.1 MMBOE 50% Innovating and adopting best practices 2017 2018 Well performance 2016 increasing…
Downstream & Chemicals 2020 Chevron Corporation
Global product demand Demand growth, 20202024 Compound annual growth rate Global economic Fuels growth drives product demand Petrochemicals Petrochemicals grow faster than fuels IMO Lubricants & additives supports light…
Well positioned for IMO 2020 U.S. Gulf Coast product light heavy differential1 /bbl Wider differentials Complex refiners advantaged Highest Nelson complexity2 VLSFO available History Consultant range: IHS, Platts…
Pasadena refinery update Strategic fit Enables light crude processing Optimizes with Pascagoula Supplies equity fuels to Texas / Louisiana Explorer Pipeline Results Pascagoula Permian Colonial Pipeline Increased Permian…
Puma Energy (Australia) acquisition update Scope 6 terminals 14 fuel depots 360 retail sites Strategic fit Refined product placement in attractive market Ability to leverage brand strength Alignment with targeted Asian…
Demonstrating leadership in the Permian basin Methane emissions intensity Flaring intensity Methane emissions intensity in the U.S. in Permian basin in Permian basin tonne CO2e/MBOE flared gas/gross gas production tonne…
Operating worlds largest CO2 sequestration at Gorgon Top 5 carbon capture & storage Million tonnes per annum Reduces Gorgons GHG emissions Gorgon by 40% Illinois Industrial 100 million tonnes expected over the life of the…
TCO investing in Kazakhstani content development Record 4.6B spent on local goods and services in 2019 33B spent on local goods and services since 1993 1.9B invested in employee programs and socio-economic development since…
Increasing renewables in support of our business Upstream Downstream Permian basin: 12-year, 65 megawatts power purchase Biofuels manufacturing: developing one of the first FCC agreement for renewable electricity from a wind park in…
CPChem working with partners to end plastic waste Founding member of Alliance to End Plastic Waste in 2019 Minimize and manage plastic waste Engage entire value chain and bring together industry, government and communities 1.5B…
Investing in future breakthrough technologies Alternative energy and Transportation and Capture and reduce Energy emerging technologies infrastructure emissions storage Investing in and partnering with companies to address GHG…
Enabling human progress via PSP Permian Strategic Partnership (PSP) is a coalition of 19 Permian Basin energy companies PSP improves the lives of Permian Basin families through initiatives for education, housing, healthcare,…
Reconciliation Tables 2020 Chevron Corporation
Appendix: reconciliation of Chevrons adjusted EPS 2019 Reported Earnings (MM) 2,924 Special items1: Upstream (8,970) Downstream -- All other 310 FX (304) Total special items and FX (8,964) Total adjusted earnings (MM) 11,888…
Appendix: reconciliation of Chevrons ROCE excluding special items and adjusted ROCE 2019 2019 Total adjusted earnings (MM) 11,888 Total adjusted earnings including price and margins (MM) 11,293 FX (304) Non-controlling interest…
Appendix: reconciliation of Chevrons adjusted CFFO excluding working capital per share and adjusted FCF excluding working capital per share1 2019 2019 Reported CFFO (MM) 27,313 Adjusted CFFO excluding working capital (MM) 24,569…
Appendix: reconciliation of Chevrons earnings per barrel excl. special items TOTAL UPSTREAM 2015 2016 2017 2018 2019 Earnings (MM) (1,961) (2,537) 8,150 13,316 2,576 Adjustment Items: Asset Dispositions (310) 70 (760) --…
Appendix: reconciliation of Chevrons earnings per barrel excl. special items TOTAL DOWNSTREAM, EXCLUDING PETROCHEMICALS 2016 2017 2018 2019 Reported Earnings (MM) 2,823 4,671 2,932 1,752 Adjustment Items: Asset Dispositions…
Appendix: reconciliation of Chevrons earnings per barrel excl. special items TOTAL DOWNSTREAM 2016 2017 2018 2019 Reported Earnings (MM) 3,435 5,214 3,798 2,481 Adjustment Items: Asset Dispositions (490) (675) (350) -- Other…
Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Operating expenses excluding special items Net debt ratio millions 4Q20 FY 2020 millions 2019 2020 millions 2020 Net Cash Provided…
Appendix: reconciliation of non-GAAP measures ROCE Adjusted ROCE millions FY 2020 millions FY 2020 Total reported earnings -5,543 Adjusted earnings -368 Non-controlling interest -18 Non-controlling interest -18 Interest…
Loading...
