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November 2021 Investor Presentation – Chevron Corp

Chevron Corp · Nov 1, 2021 · 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. November 2021 Investor Presentation – Chevron Corp – slide 1
    Chevron 2021 Investor Presentation November 1, 2021 2021 Chevron. All rights reserved.
  2. November 2021 Investor Presentation – Chevron Corp – slide 2
    Higher returns, lower carbon 2021 Chevron. All rights reserved.
  3. November 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. November 2021 Investor Presentation – Chevron Corp – slide 4
    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…
  5. November 2021 Investor Presentation – Chevron Corp – slide 5
    Winning combination Higher returns Lower carbon Advantaged portfolio First quartile upstream carbon intensity Unmatched financial strength Target harder-to-abate sectors Capital discipline Build on capabilities, assets and…
  6. November 2021 Investor Presentation – Chevron Corp – slide 6
    Accelerating growth in lower carbon energy CEO/Chairman Dedicated New Energies team Renewable fuels integrated with Downstream Focused on US and select Asia markets Downstream Upstream New Energies Midstream GHG reduction…
  7. November 2021 Investor Presentation – Chevron Corp – slide 7
    Advancing a lower carbon future Pathway to net zero* Grow lower carbon business 2030 targets Renewable fuels 100 MBD Future GHG reduction projects Hydrogen 150 KTPA Innovation, policy & offsets Carbon capture & 25…
  8. November 2021 Investor Presentation – Chevron Corp – slide 8
    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 &…
  9. November 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. November 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 efficiency by 2025 6% Cost & margin 10% ROCE in 2025 at 4% at 60 Brent 50/bbl 2% 0%…
  11. November 2021 Investor Presentation – Chevron Corp – slide 11
    Capital and cost discipline C&E expenditures1 Operating expenditures billions excl. special items3 billions 2021 C&E guidance2 lowered to 13B Opex on track 1 Excludes inorganic capital. 3 Reconciliation of non-GAAP…
  12. November 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. November 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 Qtr avg Qtr…
  14. November 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. November 2021 Investor Presentation – Chevron Corp – slide 15
    A differentiated value proposition Consistent Prepared Adaptive Generate cash Strong balance sheet Short cycle capital Capital discipline Industry consolidation New Energies 2021 Chevron Corporation 16
  16. November 2021 Investor Presentation – Chevron Corp – slide 16
    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…
  17. November 2021 Investor Presentation – Chevron Corp – slide 17
    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…
  18. November 2021 Investor Presentation – Chevron Corp – slide 18
    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…
  19. November 2021 Investor Presentation – Chevron Corp – slide 19
    Growing lower carbon businesses Cumulative capital expenditures Enabling CO2 reductions billions million annual tonnes of CO2e 50 Expect capital expenditure 3X to 10B by 2028 Project annual CFFO 25 1B by 2030 Enabling 30…
  20. November 2021 Investor Presentation – Chevron Corp – slide 20
    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…
  21. November 2021 Investor Presentation – Chevron Corp – slide 21
    Our guidance to investors Higher returns Lower carbon 10% ROCE by 2025 35% lower upstream carbon intensity 25B excess cash through 2025 3X capex 2021-2028 10% CAGR CFFO ex. WC through 2025 30 MMT CO2e enabled reductions by…
  22. November 2021 Investor Presentation – Chevron Corp – slide 22
    Financial highlights 3Q21 Earnings / Earnings per diluted share 6.1 billion / 3.19 Adjusted earnings / EPS1 5.7 billion / 2.96 Cash flow from operations / excl. working capital1 8.6 billion / 9.0 billion Total C&E / Organic C&E…
  23. November 2021 Investor Presentation – Chevron Corp – slide 23
    Delivering on financial priorities Chevron cash flow Cash capex & opex 3Q21 vs. 2Q21 quarterly average More cost efficient More capital efficient Free cash flow2 excl. working capital More free cash flow 1 Includes…
  24. November 2021 Investor Presentation – Chevron Corp – slide 24
    Updated climate change resilience report Stress-testing our portfolio under IEA NZE 2050 Target 5% PCIi reduction by 2028 including scope 1, 2 and 3ii Net zero 2050 aspiration for Upstream scope 1 & 2 emissions i: PCI…
  25. November 2021 Investor Presentation – Chevron Corp – slide 25
    Looking ahead Forward guidance 4Q21 Turnarounds & Downtime (60) MBOED UPSTREAM ALNG Return of Capital 300MM TCO Dividend 0.7 - 1.2B Refinery turnarounds: DOWNSTREAM (50) - (150)MM A/T earnings Share repurchase: 750MM…
  26. November 2021 Investor Presentation – Chevron Corp – slide 26
    Upstream 2021 Chevron. All rights reserved.
  27. November 2021 Investor Presentation – Chevron Corp – slide 27
    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…
  28. November 2021 Investor Presentation – Chevron Corp – slide 28
    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…
  29. November 2021 Investor Presentation – Chevron Corp – slide 29
    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,…
  30. November 2021 Investor Presentation – Chevron Corp – slide 30
    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…
  31. November 2021 Investor Presentation – Chevron Corp – slide 31
    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…
  32. November 2021 Investor Presentation – Chevron Corp – slide 32
    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…
  33. November 2021 Investor Presentation – Chevron Corp – slide 33
    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,…
  34. November 2021 Investor Presentation – Chevron Corp – slide 34
    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,…
  35. November 2021 Investor Presentation – Chevron Corp – slide 35
    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…
  36. November 2021 Investor Presentation – Chevron Corp – slide 36
    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…
  37. November 2021 Investor Presentation – Chevron Corp – slide 37
    2021 Production outlook MBOED Full-year of Noble Curtailment Base Asset Noble Other sales / 70 (70) contracts* (40) Lower curtailments up to 3% growth without 2021 asset sales Base declines due to (180) 250 reduced 2020…
  38. November 2021 Investor Presentation – Chevron Corp – slide 38
    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…
  39. November 2021 Investor Presentation – Chevron Corp – slide 39
    Competitive supplier of energy Global upstream oil Global upstream natural gas GHG intensity distribution GHG intensity distribution kg CO2e/BOE kg CO2e/BOE First quartile performance in oil and natural gas intensity Target…
  40. November 2021 Investor Presentation – Chevron Corp – slide 40
    Taking actions to further reduce carbon intensity Select upstream assets carbon intensity Planned GHG reduction projects kg CO2e/BOE 4 million annual tonnes of CO2e Methane management TCO: 17 Carbon capture, utilization &…
  41. November 2021 Investor Presentation – Chevron Corp – slide 41
    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…
  42. November 2021 Investor Presentation – Chevron Corp – slide 42
    Downstream & Chemicals 2021 Chevron. All rights reserved.
  43. November 2021 Investor Presentation – Chevron Corp – slide 43
    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…
  44. November 2021 Investor Presentation – Chevron Corp – slide 44
    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…
  45. November 2021 Investor Presentation – Chevron Corp – slide 45
    Strong downstream and chemicals results Product sales1 Adjusted downstream earnings & ROCE2 % change vs 2019 excl. timing effects3 billions diesel Improving macro gasoline Driving self-help jet Delivering higher…
  46. November 2021 Investor Presentation – Chevron Corp – slide 46
    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…
  47. November 2021 Investor Presentation – Chevron Corp – slide 47
    Disciplined petrochemical business Performance Projects Meeting strong demand GS Caltex reached 100% design capacity Operating reliably USGC II increasing capital and cost efficiency Cost management focus Ras Laffan progressing…
  48. November 2021 Investor Presentation – Chevron Corp – slide 48
    Renewable fuels & base oil targets Renewable Renewable diesel & Renewable natural gas sustainable aviation fuel base oil & lubricants 10X growth by 2025 3X growth by 2025 20X growth by 2025 40,000 MMBTU/D by 2030 100,000 B/D by…
  49. November 2021 Investor Presentation – Chevron Corp – slide 49
    Leading in renewable natural gas Current operations Recent actions Future developments 2,100 MMBTU/D 10,000 MMBTU/D committed by 2025 Target 40,000 MMBTU/D by 2030 Multiple partnerships Mercuria CNG joint venture Expanding…
  50. November 2021 Investor Presentation – Chevron Corp – slide 50
    Driving capital efficient renewable diesel & sustainable aviation fuel Current operations Recent actions Future developments RD sales up 30% El Segundo DHT conversion in 2022…
  51. November 2021 Investor Presentation – Chevron Corp – slide 51
    Hydrogen, carbon capture & offsets Jeff Gustavson President, Chevron New Energies 2021 Chevron. All rights reserved.
  52. November 2021 Investor Presentation – Chevron Corp – slide 52
    Building a California hydrogen hub Green Blue Sources Leveraging Richmond refinery Solar & wind Natural gas & 30 KTPA excess grey H2 capacity RNG RNG as potential feedstock Alliances with OEMs and storage Conversion…
  53. November 2021 Investor Presentation – Chevron Corp – slide 53
    Entry into Advanced Clean Energy Storage (ACES) Fully integrated H2 venture Potential anchor Mitsubishi Power & Magnum Development Green H2 production Additional Salt dome storage customers Strategic positioning…
  54. November 2021 Investor Presentation – Chevron Corp – slide 54
    Expanding our CCUS business Current operations Recent actions Future developments 5 MMT CO2 gross stored at Gorgon Gas turbine carbon capture in San Joaquin Partnering in US West & Gulf Coast hubs 6 MMT CO2 gross stored at AOSP…
  55. November 2021 Investor Presentation – Chevron Corp – slide 55
    Growing our carbon offsets business Current operations Recent actions Future developments Cost-effective compliance Offset paired products Nature-based solutions GHG quantification for LNG Approved offset trader Monetize excess…
  56. November 2021 Investor Presentation – Chevron Corp – slide 56
    Platform for growth Assets Capabilities Customers Upstream Partnership Brand Heavy-duty Refineries Technology Stakeholder Power Retail Value chain Financial Industrial 2021 Chevron Corporation 57
  57. November 2021 Investor Presentation – Chevron Corp – slide 57
    Appendix 2021 Chevron Corporation 58
  58. November 2021 Investor Presentation – Chevron Corp – slide 58
    Midstream Colin Parfitt Vice President, Midstream 2021 Chevron. All rights reserved.
  59. November 2021 Investor Presentation – Chevron Corp – slide 59
    Permian value chain strategy Waha Spot sales Katy and Agua Dulce Term sales Domestic demand Maximize enterprise earnings Firm transportation Exports Residue gas Gas processing plant Advantaged commercial agreements Wet…
  60. November 2021 Investor Presentation – Chevron Corp – slide 60
    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…
  61. November 2021 Investor Presentation – Chevron Corp – slide 61
    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…
  62. November 2021 Investor Presentation – Chevron Corp – slide 62
    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 Chevron…
  63. November 2021 Investor Presentation – Chevron Corp – slide 63
    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…
  64. November 2021 Investor Presentation – Chevron Corp – slide 64
    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 65
  65. November 2021 Investor Presentation – Chevron Corp – slide 65
    Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 3Q21 FY21 Reported earnings ( millions) Upstream 2,920 (6,089) 235 501 (2,433) 2,350 3,178 5,135 10,663…
  66. November 2021 Investor Presentation – Chevron Corp – slide 66
    Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow Free cash flow excluding working capital millions 3Q08 1Q11 3Q21 Net Cash Provided by Operating Activities 9,113…
  67. November 2021 Investor Presentation – Chevron Corp – slide 67
    Appendix: reconciliation of non-GAAP measures ROCE Adjusted ROCE millions 3Q21 millions 3Q21 Total reported earnings 6,111 Adjusted earnings 5,687 Non-controlling interest 4 Non-controlling interest 4 Interest expense (A/T) 162…
  68. November 2021 Investor Presentation – Chevron Corp – slide 68
    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…
  69. November 2021 Investor Presentation – Chevron Corp – slide 69
    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 expenses1 12,331 13,271 12,454 Adjustment items:…
  70. November 2021 Investor Presentation – Chevron Corp – slide 70
    Appendix: reconciliation of non-GAAP measures Operating expenditures excluding special items Net debt ratio millions 3Q21 FY 2018 FY 2019 2018-2019 YTD 2021 millions FY 2018 FY 2019 Quarterly Avg. Quarterly Avg. Quarterly Avg.…
  71. November 2021 Investor Presentation – Chevron Corp – slide 71
    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) --…
  72. November 2021 Investor Presentation – Chevron Corp – slide 72
    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…
  73. November 2021 Investor Presentation – Chevron Corp – slide 73
    Appendix: reconciliation of non-GAAP measures Adjusted downstream earnings excluding timing effects Adjusted downstream earnings excluding timing effects ROCE 3Q21 3Q21 2019 2020 2019 2020 millions YTD millions YTD Adjusted…
  74. November 2021 Investor Presentation – Chevron Corp – slide 74
    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…
  75. November 2021 Investor Presentation – Chevron Corp – slide 75
    Chevron Investor Day Appendix: slide notes 2021 Chevron Corporation 76
  76. November 2021 Investor Presentation – Chevron Corp – slide 76
    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…
  77. November 2021 Investor Presentation – Chevron Corp – slide 77
    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…
  78. November 2021 Investor Presentation – Chevron Corp – slide 78
    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…
  79. November 2021 Investor Presentation – Chevron Corp – slide 79
    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…
  80. November 2021 Investor Presentation – Chevron Corp – slide 80
    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…
  81. November 2021 Investor Presentation – Chevron Corp – slide 81
    Energy Transition Spotlight Appendix: slide notes 2021 Chevron Corporation 82
  82. November 2021 Investor Presentation – Chevron Corp – slide 82
    Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Energy Transition Spotlight Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 6 Winning combination…
  83. November 2021 Investor Presentation – Chevron Corp – slide 83
    Appendix: slide notes This presentation is meant to be read in conjunction with the 2021 Energy Transition Spotlight Transcript posted on chevron.com under the headings Investors, Events & Presentations. Slide 18 Creating a renewable…

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