Mike Wirth Chairman and Chief Executive Officer

© 2018 Chevron Corporation

Corporate overviewMike Wirth

Chairman and Chief Executive Officer

2© 2018 Chevron Corporation

Operational excellence leadership

Industry leading

safety and spill

performance

Reduced

energy consumption

while increasing

production

See Appendix: slide notes for definitions, source information, calculations, and other.

Loss of containment eventsBasis: 2014 = 100

Days away from work rate

CVX ranking relative to competitors,

1 being the lowest rate

Competitors: BP, RDS, XOM

1 1 1

0.05

0.10

2014 2015 2016 2017

20

40

60

80

100

2014 2015 2016 2017

Tier 1 Tier 2

Oil spills to land or waterThousands of barrels

650

700

750

2014 2015 2016 2017estimate

1 1 1

10

20

30

40

2014 2015 2016 2017

Total energy consumptionOperated assets (trillion BTUs)

CVX ranking relative to competitors,

1 being the lowest rate

Competitors: BP, RDS, TOT, XOM


Macro landscape – growing demand

The world needs more energy

to enable economic development

Demand for our products

is growing and will continue to do so

Oil markets face a longer,

flatter supply curve

Source: IEA, World Energy Outlook 2017


Global energy demandMillion barrels of oil equivalent per day

Global crude oil supply & demandMillion barrels per day

100

200

300

400

2016 2040IEA New Policies Scenario

25

50

75

100

2020 2030 2040

Supply

gap of

42 MMBD

Capital assisted decline of existing production

Crude oil and

petroleum productsNatural gas

Other: nuclear, hydro,

biomass, and renewablesCoal

IEA New Policies Scenario demand

Supply


Winning in any environment

Advantaged

portfolio

Sustainable

at lower prices

Strong

balance sheet

Superior total

shareholder return

Free cash flow

growth

#1 priority:

maintain and

grow dividend

What we have What we will do What investors get

Lower our cost structure

Grow

production

and cash

margins

Be

returns-driven

in capital

allocation

High-grade

portfolio

Get more

out of assets


Profitable downstream & chemicals portfolio

TCO

Fuels value chains Petrochemicals Additives

Focused

portfolio

Premium base oil

Advantaged

feed, scale and

technology

Complex

refineries with

scale

Integrated

value chains

Strong brands

and leading

market positions

Technology

enabled

formulations


Advantaged upstream portfolio

Opportunities

to high-grade

Lower risk

High margin /

oil-linked

Production operations

Permian

TCO

Gorgon

Wheatstone

San Joaquin Valley

Deepwater

Gulf of

Mexico

Nigeria

Diverse

Sustainable

and long-lived

Low cost

Key assets

High margin /

oil-linked


Resource to production ratioYears

Reserves to production ratioYears

10

20

30

40

Sustainable portfolio

Prudent and stable

reserves to production

Long-lived

resource base

7


9

12

15

18

2012 2013 2014 2015 2016 2017


See Appendix: slide notes for definitions, source information, calculations, and other. Source: Wood Mackenzie; public information and Chevron estimates


Strong balance sheet

Debt ratioPercent


Other companies included: APC, COP, DVN, EOG, ENI, HES, MRO, OXY, STO, SU

Credit rating

BP

RDS

TOT

BBB A AA

XOM

15

20

25

30

35

40

45

50

55

60


Disciplined C&E program

FGP / WPMP

Base

MCPs under

construction

Downstream

Exploration /

other

2018 capital & exploratory budget$ billions

~75% of spend

delivers cash

flow within

2 years

$18.3

Shale & tight

5

10

15

20

25

30

35

40

45

2014 2015 2016 2017 2018budget

2019−2020guidance

$18.3$18–20

Cash

C&E

$12.8

$18.8

Total capital & exploratory$ billions



Production costs$/BOE

8

10

12

14

16

18

2014 2015 2016 2017 2020

Cost reductions continue

Corporate cost reduction

from 2014Percent

Cost reductions

continue

Technology enables

increased efficiencies

-24

-18

-12




Liquid % of total productionPercent

Projected operating

cash margin$/BOE

Upstream cash margin grows

Increase high margin,

oil-linked volume

Divest lower margin

barrels

Improve cost structure$60/bbl

$60/bbl

$60/bbl

$70/bbl

16

20

24

28

2016 2017 2020

Source: Wood Mackenzie and CVX internal estimates

CVX Competitors:

BP, RDS, TOT, XOM

35

45

55

65

75

85

2016 2017 2018 2019 2020 2021 2022 2023

~75%CVX oil-linked production



Production growth at low C&E

Projected net production at $60/bblMMBOED

Base plus

shale & tight

2–3% CAGR through 2022

with ~$9–10B capital spend/yr

2.592.73

2016 2017 2018 2020

4-7%growth

2019

5%growth

Uncertainties

• Price effects

• Status of PZ

• Ramp-up pace of MCPs

• Asset sales



Upstream assets

Continuous portfolio reviewA

sset

Matu

rity

Australia

Deepwater

Gulf of

Mexico

Permian

Kazakhstan

CoreNon-core

Imm

atu

reM

atu

re

San Joaquin

Valley

InvestmentsHigh margin, high return

Scale, efficiency

DivestmentsNon-strategic fit

Can’t compete for capital

Receive good value

2018–2020

asset sale proceeds

target ~$5–10B

Source: Wood Mackenzie


Nigeria


Free cash flow growthCAGR % 2017–2020

CFFO ROCE at $60/bbl2017–2020

Percent

0

10

20

30

40

Improving cash returns

Expanding cash margins

Lower cost structure

Portfolio optimization


Competitors: BP, RDS, TOT, XOMChevron

Source: Third-party analyst reports

10

12

14

16

2017CFFOROCE

2020CFFOROCE

Price

upside

Cost &

other

Margin &

volume

Portfolio

enhancement

2017 CFFO ROCE

2020 CFFO ROCE

$60/bbl

$60/bbl


2018 cash generation

2018 cash flow$ billions

Cash generation

of ~$14B

2018 cash flow

breakeven @ $50/bbl

without asset sales

0

2

4

6

8

10

12

14

16

18

2017 CF after capex excl.

asset sales @ $54/bbl

2018 CF after capex and incl.

asset sales@ $60/bbl

CF sensitivity from

$54 to $60/bbl

2018 asset sales

Dividend

2018 operating activity

@ $60/bbl

Dividend

See Appendix: reconciliation of non-GAAP measures and slide notes for definitions,

source information, calculations, and other.


Indexed dividend growthBasis 2007 = 100

Shareholder distributions

A leader in

dividend growth

~9% reduction in

shares outstanding

since 2007

50

100

150

200

2007 2017

Chevron S&P 500 Competitor average: BP, RDS, TOT, XOM

~7%

CVX compound annualgrowth rate

Percent change in shares outstanding2007–2017

-30

-20

-10

0

10

20

Competitors: BP, RDS excl. shares issued for the BG acquisition, TOT, XOMChevron



Consistent financial priorities2018–2020 guidance

Maintain and grow dividend Competitive dividend growth

Fund capital program Annual C&E range $18–20B

Strong balance sheet Debt ratio ~20%

Return surplus cash Resume buy back


Mike Wirth Chairman and Chief Executive Officer

Documents

Transcript of Mike Wirth Chairman and Chief Executive Officer