Chevron 2024
Investor Presentation
April 26, 2024
© 2024 Chevron
Cautionary statement
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The statements and images in this presentation are forward-looking statements relating to Chevron's operations and lower carbon strategy that are based on management's current expectations, estimates, and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as "anticipates," "expects," "intends," "plans," "targets," "advances," "commits," "drives," "aims," "forecasts," "projects," "believes," "approaches," "seeks," "schedules," "estimates," "positions," "pursues," "progress," "may," "can," "could," "should," "will," "budgets," "outlook," "trends," "guidance," "focus," "on track," "goals," "objectives," "strategies," "opportunities," "poised," "potential," "ambitions," "aspires" and similar expressions, and variations or negatives of these words, are intended to identify such forward-looking statements, but not all forward-looking statements include such words. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond the company's control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for the company's products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics and epidemics, and any related government policies and actions; disruptions in the company's global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine, the conflict in Israel and the global response to these hostilities; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; development of large carbon capture and offset markets; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company's control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures related to greenhouse gas emissions and climate change; the potential liability resulting from pending or future litigation; the ability to successfully integrate the operations of the company and PDC Energy, Inc. and achieve the anticipated benefits from the transaction, including the expected incremental annual free cash flow; the risk that Hess Corporation (Hess) stockholders do not approve the potential transaction, and the risk that regulatory approvals are not obtained or are obtained subject to conditions that are not anticipated by the company and Hess; potential delays in consummating the transaction, including as a result of regulatory proceedings or the ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block joint operating agreement; risks that such ongoing arbitration is not satisfactorily resolved and the potential transaction fails to be consummated; uncertainties as to whether the potential transaction, if consummated, will achieve its anticipated economic benefits, including as a result of regulatory proceedings and risks associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the potential transaction that are not waived or otherwise satisfactorily resolved; the company's ability to integrate Hess' operations in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the potential transaction will not be realized or will not be realized within the expected time period; the company's future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; higher inflation and related impacts; material reductions in corporate liquidity and access to debt markets; changes to the company's capital allocation strategies; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global
energy industry; and the factors set forth under the heading "Risk Factors" on pages 20 through 26 of the company's 2023 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other
unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.
As used in this presentation, the term "Chevron" and such terms as "the company," "the corporation," "our," "we," "us" and "its" may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
Terms such as "resources" may be used in this presentation to describe certain aspects of Chevron's portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, this and other terms, see the "Glossary of Energy and Financial Terms" on pages 26 through 27 of Chevron's 2023 Supplement to the Annual Report available at chevron.com.
This presentation is meant to be read in conjunction with the related transcripts posted on Chevron.com under the headings "Investors," "Events & Presentations."
© 2024 Chevron | 2 |
Higher returns
© 2024 Chevron
Balanced energy framework
Economic prosperity | Energy security | Environmental protection | ||
Affordable for | Reliable and | Ever-cleaner |
customers and countries | diverse supply | energy |
© 2024 Chevron | 4 |
Safely deliver higher returns, lower carbon
Higher returns
Advantaged portfolio
Capital and cost discipline
Growing traditional energy
Superior distributions to shareholders
Lower carbon
Progress toward 2028 carbon intensity targets
Aim to be a leader in methane management
Growing renewable fuels
Early actions in CCUS and hydrogen
See Appendix for reconciliation of non-GAAP measures and slide notes providing definitions, source information, calculations and other information.
© 2024 Chevron | 5 |
Reserves and resources
1-year reserve replacement
BBOE
(1.1) | 1.0 |
<(0.1) | 1-year |
86% RRR in 2023
11.2 | 11.1 |
10-year net adds
exceed
production and sales
YE 2022 Production Asset | Net | YE 2023 |
sales | adds |
See Appendix for reconciliation of non-GAAP measures and slide notes providing definitions, source information, calculations and other information.
10-year resource replenishment
Total 6P BBOE
31.5
(10.5)
(13.7)
75.2
67.9
YE 2013 Production Asset | Net | YE 2023 |
sales | adds |
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Profitably growing our upstream business
Upstream earnings per barrel | Production guidance |
Excludes special items | Excludes impact of potential asset sales |
Net MMBOED |
Improved
margins
Capital and cost
efficient
Expect >3% CAGR
for production by 2027
2023-2027 guidance is based on flat nominal $60/BBL Brent. This is for illustrative purposes only and not
necessarily indicative of Chevron's price forecast.
Forward guidance as of Chevron Investor Day on February 28, 2023.
See Appendix for reconciliation of non-GAAP measures and slide notes providing definitions, source information, calculations, and other information.
© 2024 Chevron | 7 |
2024 production outlook
MBOED | Other organic | Base / | Expected | ||
growth | other | ||||
Permian | asset sales | ||||
DJ Basin | ~30 | ~(30) | ~(30) | ||
~75 | |||||
+4% to +7% | |||||
~125 | Growth | ||||
3,120
2023 | 2024 |
Guidance | |
$83/BBL Brent | $80/BBL Brent |
Forward guidance as of 4Q23 Earnings Call on February 2, 2024.
See Appendix for reconciliation of non-GAAP measures and slide notes providing definitions, source information, calculations and other information.
Full year of PDC Energy
Permian growth ~10%
More asset sales
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Strong Permian execution and outlook
Production
Net MBOED
COOP NOJV Royalty
1,000
750
500
250
0
2H231H242H24
COOP - Company-operated
NOJV - Non-operated joint venture
Forward guidance as of 4Q23 Earnings Call on February 2, 2024.
Diversified
portfolio
High
returns
~10%
2023 growth
On track to achieve 1 MMBOED in 2025
Production
Net MBOED
MB | DB-TX | DB-NM | Actual | |
1,000
750
500
250
0
2019 2020 2021 2022 2023 2024 2025
MB - Midland Basin
DB-TX - Delaware Basin - Texas
DB-NM - Delaware Basin - New Mexico
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Permian 2023 well performance update
Midland Basin | Delaware Basin - Texas | Delaware Basin - New Mexico | ||
53 POPs in 2023 | 93 POPs in 2023 | 49 of 59 2023 POPs in 2H | ||
MB well performance | DB-TX well performance | DB-NM well performance | ||
Produced volume per 2 mile well | Produced volume per 2 mile well | Produced volume per 2 mile well |
2023 | 2023 | 2H 2023 | ||
2022 | 2022 | 2022 | ||
COOP - Company-operated
POP - Put on production
MB - Midland Basin
DB-TX - Delaware Basin - Texas
DB-NM - Delaware Basin - New Mexico
© 2024 Chevron | 10 |
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Chevron Corporation published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 22:33:29 UTC.