Chevron 2022 Investor Presentation January 31, 2022 2022 Chevron. All rights reserved.
Higher returns, lower carbon 2022 Chevron. All rights reserved.
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…
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…
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…
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…
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 &…
Advantaged portfolio Diverse Resilient Low-cost Large-scale Upstream production operations and exploration Long-lived Major downstream and chemical facilities 2022 Chevron Corporation 9
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 4% at at 60 Brent 50/bbl 2% 0%…
Delivering capital and cost efficiency Annual organic C&E Operating expenses * billions excl. special items billions capital spend 30% lower Capital spend 50% lower than 2019 than 2019 Operating expense 9% lower Operating…
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…
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 2005 2010 2015 2020 2021 2005 Qtr Qtr avg Qtr avg…
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…
A differentiated value proposition Consistent Prepared Adaptive Generate cash Strong balance sheet Short cycle capital Capital discipline Industry consolidation New Energies 2022 Chevron Corporation 15
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 / Other 2X ROCE 10 6% Upstream by 2025 4% 10% CAGR FCF 5 through 2025 2% 0% 0…
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…
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…
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…
2021 aligned with financial priorities billions CFFO Working excl. WC Capital Cash capex 4% quarterly -1.4 dividend per share increase Dividends -8.1 15% below C&E budget Share repurchases -10.2 Debt…
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…
Looking ahead 1Q2022 outlook Full-year 2022 outlook Production outlook Upstream Turnarounds/Downtime: (40) MBOED (excl. 2022 asset sales): Flat to down 3% Refinery turnarounds: Downstream (250) - (350)MM A/T earnings…
2022 Chevron Investor Day Tuesday, March 1, 2022 10:00 am 1:00 pm ET Virtual from New York City 2022 Chevron Corporation 26
Upstream 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…
Sustaining proved reserves 1-year reserve replacement 5-year reserve replacement billion BOE billion BOE 1-year -1.1 -0.0 1.3 112% RRR in 2021 5-year -5.4 -0.8 6.4 103% RRR 2016-2021 Note: Numbers may not sum due to…
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 Greater investment flexibility Weighted average IRR (%) 30 Highly competitive and predictable returns 15 Lower…
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…
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…
FGP / WPMP update Cost outlook 100% B 46.5 +1.9 47.1 -1.1 -0.8 45.2 45.2 Cost target remains 45.2B Cost Estimate Contingency Expected first oil update Focus on vaccinations, productivity WPMP Late 2022 Mid 2023 and…
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…
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 2022…
2022 Production outlook MBOED Contract New Base / 2021 Asset expirations production other sales (160) 80 20 (20) Indonesia & Thailand contract expirations Ramp-up in Permian Lower turnaround activity 2021 2021 2022…
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…
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 35%…
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 &…
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…
Downstream & Chemicals 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…
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…
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…
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…
Driving capital efficient renewable diesel & sustainable aviation fuel Current operations Recent actions Future developments RD sales up 30% El Segundo DHT conversion in 2022…
Hydrogen, carbon capture & offsets Jeff Gustavson President, Chevron New Energies 2021 Chevron. All rights reserved.
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…
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…
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…
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…
Platform for growth Assets Capabilities Customers Upstream Partnership Brand Heavy-duty Refineries Technology Stakeholder Power Retail Value chain Financial Industrial 2022 Chevron Corporation 57
Appendix 2022 Chevron Corporation 58
Midstream Colin Parfitt Vice President, Midstream 2021 Chevron. All rights reserved.
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…
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 2022…
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 2022 Chevron Corporation 65
Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow Free cash flow excluding working capital millions FY 2021 Net Cash Provided by Operating Activities 29,199 Net…
Appendix: reconciliation of non-GAAP measures Operating expenditures excluding special items Net debt ratio millions FY 2019 2021 millions 4Q21 Operating expenses1 Short term debt 25,945 25,428 256 Adjustment items: Long term…
Appendix: reconciliation of non-GAAP measures ROCE Adjusted ROCE millions FY 2021 millions FY 2021 Total reported earnings 15,625 Adjusted earnings 15,608 Non-controlling interest 64 Non-controlling interest 64 Interest expense…
Appendix: reconciliation of non-GAAP measures Adjusted ROCE 2020 Reported earnings (MM) (5,543) Special items1 (4,530) FX (645) Total adjusted earnings (MM) (368) Interest expense (A/T) 658 Non-controlling interest (18)…
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 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…
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…
Chevron Investor Day Appendix: slide notes 2022 Chevron Corporation 75
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…
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…
Energy Transition Spotlight Appendix: slide notes 2022 Chevron Corporation 81
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…
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…
Loading...
