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August 2021 Investor Presentation – Chevron Corp

Chevron Corp · Aug 1, 2021 · 76 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. August 2021 Investor Presentation – Chevron Corp – slide 1
    Chevron 2021 Investor Presentation August 2021 2021 Chevron. All rights reserved.
  2. August 2021 Investor Presentation – Chevron Corp – slide 2
    Corporate overview Mike Wirth Chairman and Chief Executive Officer 2021 Chevron. All rights reserved.
  3. August 2021 Investor Presentation – Chevron Corp – slide 3
    Centennial moment on the NYSE 1921 2021 Consistent values Prepared for any environment Adaptive to evolving markets 2021 Chevron Corporation 4
  4. August 2021 Investor Presentation – Chevron Corp – slide 4
    Higher returns, lower carbon Advantaged portfolio Unmatched financial strength Capital discipline Superior distributions to shareholders Advancing a lower carbon future 2021 Chevron Corporation 5
  5. August 2021 Investor Presentation – Chevron Corp – slide 5
    We believe energy is essential in protecting the innovation will meet environment societys challenges Enables Air, water, land, and climate For manufacturing, electricity, human progress for all agriculture, and transport…
  6. August 2021 Investor Presentation – Chevron Corp – slide 6
    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 &…
  7. August 2021 Investor Presentation – Chevron Corp – slide 7
    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…
  8. August 2021 Investor Presentation – Chevron Corp – slide 8
    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…
  9. August 2021 Investor Presentation – Chevron Corp – slide 9
    Advantaged portfolio Diverse Resilient Low-cost Large-scale Upstream production operations and exploration Long-lived Major downstream and chemical facilities 2021 Chevron Corporation 10
  10. August 2021 Investor Presentation – Chevron Corp – slide 10
    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%…
  11. August 2021 Investor Presentation – Chevron Corp – slide 11
    Capital and cost discipline C&E expenditures1 Operating expenditures billions excl. special items 3 billions 2021 C&E guidance2 lowered to 13B Opex on track 1 Excludes inorganic capital. 3 Reconciliation of non-GAAP…
  12. August 2021 Investor Presentation – Chevron Corp – slide 12
    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…
  13. August 2021 Investor Presentation – Chevron Corp – slide 13
    Dividend increase consistent with priorities 7% dividend-per-share CAGR since 2005 Maintain and grow dividend 300 Fund capital program 200 100 Strong balance sheet 0 2021 2005 2005 2010 2015 2020 Qtr Return surplus…
  14. August 2021 Investor Presentation – Chevron Corp – slide 14
    Buyback consistent with priorities Maintain and grow dividend 13 out of last 17 years Fund capital program 50 billion in repurchases Average 87 per share Strong balance sheet 1 more than ratable average Return surplus…
  15. August 2021 Investor Presentation – Chevron Corp – slide 15
    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…
  16. August 2021 Investor Presentation – Chevron Corp – slide 16
    Financial highlights 2Q21 Earnings / Earnings per diluted share 3.1 billion / 1.60 Adjusted earnings / EPS1 3.3 billion / 1.71 Cash flow from operations / excl. working 7.0 billion / 7.1 billion capital1 Total C&E / Organic…
  17. August 2021 Investor Presentation – Chevron Corp – slide 17
    Delivering on financial priorities 2Q21 cash flow Quarterly average free cash flow2 billions excl. working capital billions CFFO Cash ex. WC WC capex -0.1 -1.8 Dividends Dividend growth Debt -2.6 Asset sales Lower net…
  18. August 2021 Investor Presentation – Chevron Corp – slide 18
    Recent highlights Noble Energy & NBLX GSC petchem Share repurchases Integration complete Completed early & under budget Start-up in 3Q21 600MM in synergies Expected 100% capacity in 3Q21 Target 2-3 billion per year 2021…
  19. August 2021 Investor Presentation – Chevron Corp – slide 19
    Looking ahead Forward guidance 3Q21 Update 2021 Energy Transition Spotlight Production guidance: UPSTREAM Turnarounds: (150) MBOED Curtailments: (5) MBOED Refinery turnarounds: When: September 14th DOWNSTREAM (50) (150)MM…
  20. August 2021 Investor Presentation – Chevron Corp – slide 20
    Upstream Jay Johnson Executive Vice President, Upstream 2021 Chevron. All rights reserved.
  21. August 2021 Investor Presentation – Chevron Corp – slide 21
    Diverse and advantaged portfolio 1,200 MBOED Asset class 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…
  22. August 2021 Investor Presentation – Chevron Corp – slide 22
    Efficient replacement of reserves and resources Reserves Resources 5-year reserve replacement 10-year resource replenishment BBOE BBOE 11.2 6.0 11.1 42.0 84.1 99% RRR 2016-2020 63.9 -10.0 -5.3 -0.8 Low-cost resource…
  23. August 2021 Investor Presentation – Chevron Corp – slide 23
    Industry leading performance Upstream C&E Upstream earnings per barrel billions excl. special items /BOE 20 15 Capital 10 discipline 5 -5 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Competitive CVX Competitors: BP,…
  24. August 2021 Investor Presentation – Chevron Corp – slide 24
    Investment opportunities support higher returns Upstream C&E Return on new investments billions 45 Greater investment flexibility Weighted average IRR (%) 30 Highly competitive and predictable returns 15 Lower…
  25. August 2021 Investor Presentation – Chevron Corp – slide 25
    Strong Permian performance Midland and Delaware Basin Free cash flow Net MBOED excl. working capital billions Continued efficiency improvements Free cash flow excl. WC 3B in 2021 Lower carbon grid-powered rig 2019 2020…
  26. August 2021 Investor Presentation – Chevron Corp – slide 26
    Leveraging the unconventional asset class Unit development cost Net production /BOE MBOED 15 Liquids-rich 400 20% product mix 10 25% 45% Lower cost 200 International 5 Flexible U.S. investments (excluding…
  27. August 2021 Investor Presentation – Chevron Corp – slide 27
    Addressing MCP performance Returns focus Strengthen Execution discipline engineering delivery Simplest, lowest cost concept In-house concept engineering Condition-based progression Accretive incremental scope Standard,…
  28. August 2021 Investor Presentation – Chevron Corp – slide 28
    FGP / WPMP update Cost outlook 100% B 46.5 +1.9 47.1 -1.1 -0.8 45.2 45.2 Overall progress 84% Cost Estimate Contingency Cost target remains 45.2B Expected first oil update Late 2022 Mid 2023 WPMP Focus on vaccinations,…
  29. August 2021 Investor Presentation – Chevron Corp – slide 29
    Other upstream updates Gulf of Mexico Australia Colorado Ballymore commenced FEED Jansz-Io Compression achieved FID Latest facilities 6 kg CO2e/BOE Whale achieved FID All Gorgon repairs complete Smaller footprint and lower cost…
  30. August 2021 Investor Presentation – Chevron Corp – slide 30
    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…
  31. August 2021 Investor Presentation – Chevron Corp – slide 31
    2021 Production outlook MBOED Full-year of Noble Curtailment Base Asset Noble Other sales / contracts* 70 (70) (40) Lower curtailments up to 3% growth without 2021 asset sales Base declines due to 250 (180) reduced 2020…
  32. August 2021 Investor Presentation – Chevron Corp – slide 32
    Strengthening upstream performance at flat 50 Brent nominal Net production Cash margin MMBOED excl. working capital 4 20 /BOE Reliable base production Preserving 3 15 long-term value Growing cash margins 2 10 2020 2023…
  33. August 2021 Investor Presentation – Chevron Corp – slide 33
    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…
  34. August 2021 Investor Presentation – Chevron Corp – slide 34
    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…
  35. August 2021 Investor Presentation – Chevron Corp – slide 35
    Downstream & Chemicals Mark Nelson Executive Vice President, Downstream & Chemicals 2021 Chevron. All rights reserved.
  36. August 2021 Investor Presentation – Chevron Corp – slide 36
    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…
  37. August 2021 Investor Presentation – Chevron Corp – slide 37
    Improving returns in low-margin environment HVP demand outlook Targeted earnings improvement 70 MMBD billions Self Help 60 Expecting demand recovery Volume 50 Managing 40 controllables 30 2019 2020 2021 2023 2025…
  38. August 2021 Investor Presentation – Chevron Corp – slide 38
    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…
  39. August 2021 Investor Presentation – Chevron Corp – slide 39
    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…
  40. August 2021 Investor Presentation – Chevron Corp – slide 40
    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…
  41. August 2021 Investor Presentation – Chevron Corp – slide 41
    Higher returns, lower carbon Pierre Breber Vice President and Chief Financial Officer 2021 Chevron. All rights reserved.
  42. August 2021 Investor Presentation – Chevron Corp – slide 42
    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…
  43. August 2021 Investor Presentation – Chevron Corp – slide 43
    Driving higher returns at flat 50 Brent nominal ROCE Free cash flow 2020-2025 excl. working capital 10% 15 billions 8% Downstream / Other 2X ROCE 10 6% Upstream by 2025 4% 10% CAGR FCF 5 through 2025 2% 0% 0…
  44. August 2021 Investor Presentation – Chevron Corp – slide 44
    Demonstrating capital discipline Organic Inorganic Low-carbon Total C&E Sales & Acquisitions Marginal abatement cost curve Index, 2016 (MACC) 1.8 Price, /tonne CO2e 1.4 1.0 0.6 0.2 2016 2017 2018 2019 2020…
  45. August 2021 Investor Presentation – Chevron Corp – slide 45
    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…
  46. August 2021 Investor Presentation – Chevron Corp – slide 46
    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…
  47. August 2021 Investor Presentation – Chevron Corp – slide 47
    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…
  48. August 2021 Investor Presentation – Chevron Corp – slide 48
    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…
  49. August 2021 Investor Presentation – Chevron Corp – slide 49
    Energy transition actions Renewable Hydrogen Carbon capture fuels El Segundo co-processing Cummins H2 MOU Cogen exhaust capture Producing RD Partnering to grow Completed FEED in 2Q hydrogen opportunities in San Joaquin…
  50. August 2021 Investor Presentation – Chevron Corp – slide 50
    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…
  51. August 2021 Investor Presentation – Chevron Corp – slide 51
    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…
  52. August 2021 Investor Presentation – Chevron Corp – slide 52
    Midstream Colin Parfitt Vice President, Midstream 2021 Chevron. All rights reserved.
  53. August 2021 Investor Presentation – Chevron Corp – slide 53
    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…
  54. August 2021 Investor Presentation – Chevron Corp – slide 54
    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…
  55. August 2021 Investor Presentation – Chevron Corp – slide 55
    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…
  56. August 2021 Investor Presentation – Chevron Corp – slide 56
    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…
  57. August 2021 Investor Presentation – Chevron Corp – slide 57
    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…
  58. August 2021 Investor Presentation – Chevron Corp – slide 58
    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 59
  59. August 2021 Investor Presentation – Chevron Corp – slide 59
    Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 FY21 Reported earnings ( millions) Upstream 2,920 (6,089) 235 501 (2,433) 2,350 3,178 5,528 Downstream 1,103…
  60. August 2021 Investor Presentation – Chevron Corp – slide 60
    Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow Free cash flow excluding working capital FY 2018 FY 2019 FY 2020 1H 2021 millions FY 2018 FY 2019 FY 2020 1Q21 2Q21…
  61. August 2021 Investor Presentation – Chevron Corp – slide 61
    Appendix: reconciliation of non-GAAP measures ROCE Adjusted ROCE millions 2Q21 millions 2Q21 Total reported earnings 3,082 Adjusted earnings 3,274 Non-controlling interest 12 Non-controlling interest 12 Interest expense (A/T)…
  62. August 2021 Investor Presentation – Chevron Corp – slide 62
    Appendix: reconciliation of operating expenses excluding special items and adjusted ROCE 2019 2020 Reported earnings (MM) (5,543) Operating expenses1 25,945 Special items3 (4,530) Adjustment items: FX (645) NBL operating…
  63. August 2021 Investor Presentation – Chevron Corp – slide 63
    Appendix: reconciliation of non-GAAP measures Operating expenditures excluding special items Net debt ratio millions 1H19 1H20 1H21 millions 2Q21 Short term debt 3,497 Operating expenses 1 12,331 13,271 12,454 Long term debt*…
  64. August 2021 Investor Presentation – Chevron Corp – slide 64
    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) --…
  65. August 2021 Investor Presentation – Chevron Corp – slide 65
    Appendix: reconciliation of Chevrons downstream adjusted earnings TOTAL DOWNSTREAM 2020 Earnings (MM) 47 Special Items 1 (140) Foreign exchange (152) Total special Items and FX (292) Total adjusted earnings (MM) 339…
  66. August 2021 Investor Presentation – Chevron Corp – slide 66
    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…
  67. August 2021 Investor Presentation – Chevron Corp – slide 67
    Corporate appendix 2021 Chevron Corporation 68
  68. August 2021 Investor Presentation – Chevron Corp – slide 68
    Appendix: slide notes This presentation is m eant to be read in conjunction w ith the 2021 Chevron Investor Day Transcript posted on chevron.com unde r the headings Investors, Events & Presentations. Slide 9 - Leading operational…
  69. August 2021 Investor Presentation – Chevron Corp – slide 69
    Upstream appendix 2021 Chevron Corporation 70
  70. August 2021 Investor Presentation – Chevron Corp – slide 70
    Appendix: slide notes This presentation is m eant to be read in conjunction w ith the 2021 Chevron Investor Day Transcript posted on chevron.com unde r the headings Investors, Events & Presentations. Slide 19 Diverse and advantaged…
  71. August 2021 Investor Presentation – Chevron Corp – slide 71
    Downstream & Chemicals appendix 2021 Chevron Corporation 72
  72. August 2021 Investor Presentation – Chevron Corp – slide 72
    Appendix: slide notes This presentation is m eant to be read in conjunction w ith the 2021 Chevron Investor Day Transcript posted on chevron.com unde r the headings Investors, Events & Presentations. Slide 34 Portfolio focused on areas…
  73. August 2021 Investor Presentation – Chevron Corp – slide 73
    Higher returns, lower carbon appendix 2021 Chevron Corporation 74
  74. August 2021 Investor Presentation – Chevron Corp – slide 74
    Appendix: slide notes This presentation is m eant to be read in conjunction w ith the 2021 Chevron Investor Day Transcript posted on chevron.com unde r the headings Investors, Events & Presentations. Slide 40 Regaining favor w ith…
  75. August 2021 Investor Presentation – Chevron Corp – slide 75
    Closing remarks appendix 2021 Chevron Corporation 76
  76. August 2021 Investor Presentation – Chevron Corp – slide 76
    Appendix: slide notes This presentation is m eant to be read in conjunction w ith the 2021 Chevron Investor Day Transcript posted on chevron.com unde r the headings Investors, Events & Presentations. Slide 48 Chevron poised to deliver…

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