2021 Virtual Chevron Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Todays agenda Presentation and Q&A 7:00 AM 8:30 AM PT Introduction Wayne Borduin General Manager, Investor Relations Corporate Overview Mike Wirth Chairman of the Board and Chief Executive Officer 15 min. Upstream Jay Johnson Executive…
Corporate overview Mike Wirth Chairman and Chief Executive Officer Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Centennial moment on the NYSE 1921 2021 Consistent values Prepared for any environment Adaptive to evolving markets 2021 Chevron Corporation 5
Higher returns, lower carbon Advantaged portfolio Unmatched financial strength Capital discipline Superior distributions to shareholders Advancing a lower carbon future 2021 Chevron Corporation 6
We believe energy is essential in protecting the innovation will meet environment societys challenges Enables Air, water, land, and climate Formanufacturing, electricity, human progress for all agriculture, and transport…
Delivering on our commitment to ESG Environment Social Governance Protecting the environment Empowering people Getting results the right way Water resources Human capital management Transparency Biodiversity Diversity &…
Leading operational excellence Oil spills to land or water Thousands of barrels 10 Industry leading 5 Industry leading workforce safety process safety 1 2 1 1 2016 2017 2018 2019 2020 CVX ranking relative to competitors…
Advancing a lower-carbon future Lower Increase renewables Invest in low-carbon carbon intensity and offsets technologies cost efficiently in support of our business to enable commercial solutions 2021 Chevron Corporation…
Advantaged portfolio Diverse Resilient Low-cost Large-scale Upstream production operations and exploration Long-lived Major downstream and chemical facilities 2021 Chevron Corporation 11
Affirming long-term capital guidance Organic C&E expenditures Cash capex / CFFO billions 150% 100% Disciplined 50% capital outlook 0% 2016 2020 2025 Short-cycle, Chevron Competitors: BP, RDS, TOT, XOM 14 lower risk…
Increasing returns on capital at flat 50 Brent nominal ROCE 2020 2025 12% 10% at More than double ROCE 8% Capital 60/bbl by 2025 efficiency 6% Cost & margin 10% ROCE in 2025 4% at at 60 Brent 50/bbl 2% 0%…
Downside resilience and upside leverage Downside at 40 Brent* Upside at 60 Brent* billions, 2021-2025 billions, 2021-2025 150 150 Asset Reliable sales & other Excess cash dividend 100 Debt 100 Asset Downside net debt Cash…
Financial priorities remain unchanged Leading dividend Leading balance sheet % DPS change, 2019-2020 Net debt ratio, 2020 Maintain and grow dividend Fund capital program Strong balance sheet -60% -40% -20% 0% 20% Return…
Offering a differentiated value proposition Consistent Prepared Adaptive Maintained our dividend Industry-leading balance sheet Bottom of the cycle M&A Capital discipline Ahead in our Transformation Advancing a lower carbon…
Upstream Jay Johnson Executive Vice President, Upstream Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Diverse and advantaged portfolio Asset class 1,200 MBOED North America 84 BBOE of 6P resources 1,400 MBOED Conventional Eurasia-Pacific Shale & tight Deepwater Heavy Oil LNG 480 MBOED Middle East, Africa, South…
Industry leading performance Upstream C&E Upstream earnings per barrel billions excl. special items /BOE 20 15 Capital 10 5 discipline -5 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Competitive CVX Competitors: BP,…
Investment opportunities support higher returns Upstream C&E Return on new investments billions 45 30 Greater investment flexibility Weighted average IRR (%) 30 20 Highly competitive and predictable returns 15 10…
Growing free cash flow from the Permian Permian development capital spend Midland and Delaware Basin billions Net MBOED 4 1,000 Flexible capital on 2 advantaged acreage 750 2020 2023 2025 Free cash flow Free cash flow 3B by…
Leveraging the unconventional asset class Unit development cost Net production /BOE MBOED 15 Liquids-rich 400 20% product mix 10 25% 45% Lower International cost 200 5 Flexible U.S. investments (excluding…
Advancing FGP / WPMP Current status Key focus areas Overall progress 81%, construction at 60% Maintaining a COVID-free workforce Workforce remobilized to 22,000 Rebuilding productivity 90% of modules on foundation Resequencing…
Sustaining long-term value in Australia Protecting the base Investing for the future Addressing reliability issues Gorgon maintaining production Progressing incremental capacity increases North West Shelf Optimizing…
Cost and carbon efficient developments in GoM St. Malo Mad Dog 2 Anchor Whale FID 2021 Standard facility design Waterflood development Expansion development Advancing 20k technology First oil 2021 First oil 2022 First oil 2024…
Growing in the Eastern Mediterranean Large competitive resource base 40 tcf Significant exploration potential 5 million acres Growing regional demand 3-4% annual growth Additional export potential 1-2 bcfd 2021…
Strengthening upstream performance at flat 50 Brent nominal Net production Cash margin MMBOED excl. working capital 4 20 /BOE Reliable base production Preserving long-term value 3 15 Growing cash margins 2 10 2020…
Establishing new GHG reduction targets kg CO2e/BOE 2016 Actual 1H2020 Actual 2028 Targets Commodity and Oil GHG intensity 40.0 28.3 24.0 equity-based approach Gas GHG intensity 32.3 27.3 24.0 Aligned with Paris Flaring…
Ongoing actions to further lower carbon Carbon sequestration Renewable power 1B 500 MW through invested to reduce partnerships emissions by 2025 Methane emissions Flaring 85% reduction from Zero US onshore routine…
Downstream & Chemicals Mark Nelson Executive Vice President, Downstream & Chemicals Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Portfolio focused on areas of strength Fuels & lubricants Chemicals Focused R&M value chains Integrated lubricants business Advantaged chemical assets Refinery Refinery integrated with premium base oil plant…
Managing controllables in fuels and lubricants Feedstock optionality Operating costs Sales channels 70% increase in new feedstocks Reducing unit opex 5% 95% of HVP product placed Integrating biofeedstocks Executing turnarounds…
Attractive petrochemical business Constructive macro Strong execution Future growth Growing demand Reducing unit opex 5% Assessing USGC II Leveraging ethane advantage Completing GSC cracker Progressing Ras Laffan FEED…
Taking action to lower carbon Renewable Renewable Renewable natural gas diesel and biodiesel base oils 10X volume 2X volume 20X volume growth by 2025 growth by 2025 growth by 2025 Expanded partnerships in 1Q21 Co-processing…
Higher returns, lower carbon Pierre Breber Vice President and Chief Financial Officer Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Regaining favor with investors Energy weighting Responsible investing % of S&P500 index trillions AUM by PRI signatories 14 120 12 100 10 Higher returns 80 8 60 6 4 Lower carbon 40 20 2 0 0 2010 2015 2020…
Driving higher returns at flat 50 Brent nominal ROCE Free cash flow 2020-2025 excl. working capital 10% 15 billions 8% Downstream 2X ROCE / Other 10 6% Upstream by 2025 4% 10% CAGR FCF 5 through 2025 2% 0% 0…
Lower carbon intensity cost efficiently Upstream carbon intensity GHG reductions Equity basis (weighted avg) MACC portfolio 2021-2028 projects kg CO2e/BOE 4 million annual tonnes CO2e 40 35% reduction of CO2 intensity by 2028…
Working towards a net zero future Upstream emission intensity scope 1 and 2 kg CO2e/BOE 40 Marginal Abatement Cost Curves guide investments 30 Achieved Portfolio MACC Targets updated every 5 years 20 projects Future…
Increase renewables and offsets in support of our business Organic Organic Organic Natural gas Liquids Power Brightmark 2021 start-up El Segundo 10 MBD co-processing 2021 Algonquin 500 MW by 2025 30 CNG stations in CA by 2025…
Invest in low-carbon technologies to enable commercial solutions Carbon capture Hydrogen Venture Svante pilot start up Fueling stations and Launched 2nd Future Energy in 2022 OEM partnership Fund with 300MM Schlumberger and…
Aligning incentives with higher returns, lower carbon Long-term incentive plan Annual bonus program Financial results PSU Relative ROCE added 35% (ROCE) Options 15% to long term pay 25% Capital PSU Energy transition…
Chevron poised to deliver higher returns, lower carbon Improving Lowering Downside resilience & returns carbon upside leverage Driving towards 35% reduction 35% net debt 2X ROCE by 2025 in Upstream intensity by 2028 at flat…
Midstream Colin Parfitt Vice President, Midstream Investor Day March 9, 2021 2021 Chevron. All rights reserved.
Permian value chain strategy Waha Spot sales Katy and Agua Dulce Term sales Maximize enterprise earnings Domestic demand Firm transportation Exports Residue gas Gas processing plant Advantaged commercial agreements Wet…
Permian takeaway and export capacity Crude, Natural Gas and NGL flows Crude Natural gas NGL 100% in-basin flow assurance and no routine flaring Sufficient contracted takeaway Sufficient contracted transportation, & export…
Noble Midstream Partners Diversified, low-cost DJ Basin midstream provider Platteville Saddlehorn Pipeline White Cliffs Pipeline Optimizing margin and connectivity Cushing for Chevron barrels Epic Y-Grade Wink Epic Crude…
LNG value chain strategy Driven by value, reliability, and optionality Primarily oil-linked contracts Continuous optimization to maximize realizations Leverage global customer channels to extend value chain 2021…
Executing our supply & trading strategy to maximize returns Flow assurance Optimize value chains Trade around flows Tengizchevroil (TCO) Richmond Permian Pasadena To Europe GS Caltex Pascagoula El Segundo SPRC / SRC To…
Renewable power in support of our business Algonquin Existing PPAs 250MM 65 MW investment West Texas Develop 500 MW 29 MW around our key assets California 2021 Chevron Corporation 55
Appendix: reconciliation of operating expenses excluding special items and adjusted ROCE 2019 2020 Operating expenses1 25,945 Reported earnings (MM) (5,543) Special items3 (4,530) Adjustment items: NBL operating expenses2 1,603…
Appendix: reconciliation of Chevrons upstream earnings per barrel excl. special items TOTAL UPSTREAM 2016 2017 2018 2019 2020 Earnings (MM) (2,537) 8,150 13,316 2,576 (2,433) Adjustment Items: Asset Dispositions 70 (760) --…
Appendix: reconciliation of Chevrons downstream adjusted earnings TOTAL DOWNSTREAM 2020 Earnings (MM) 47 Special Items1 (140) Foreign exchange (152) Total special Items and FX (292) Total adjusted earnings (MM) 339…
Appendix: reconciliation of normalized FCF 2020 Reported CFFO (MM) 10,577 Adjustment for price and margin: 50 Brent normalization1 3,876 Mid-cycle Downstream & Chemical margins 1,600 Total price and margin adjustment 5,476…
Corporate appendix 2021 Chevron Corporation 60
Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Chevron Investor Day Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 9 - Leading operational…
Upstream appendix 2021 Chevron Corporation 62
Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Chevron Investor Day Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 19 Diverse and advantaged…
Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Chevron Investor Day Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 34 Portfolio focused on areas of…
Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Chevron Investor Day Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 40 Regaining favor with…
Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Chevron Investor Day Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 48 Chevron poised to deliver…
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