Slide 1: Second quarter 2024 earnings call
Second quarter 2024 earnings call August 2, 2024 © 2024 Chevron Anchor
Slide 2: Cautionary statement
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 This presentation contains forward-looking images and statements relating to Chevron’s lower carbon strategy and oper
Slide 3: Winning combination
Winning combination Higher returns Lower carbon $6 billion Advancing ACES cash returned to shareholders hydrogen project Record Commissioning Geismar Permian production renewable diesel plant expansion Hess merger > 100 GHG abatement projects shareholder approval in progress ACES – Advanced Clean En
Slide 4: Advancing our Gulf of Mexico portfolio
Advancing our Gulf of Mexico portfolio Anchor first oil this month under budget ~50% increase in production 300 MBOED by 20261 Optimizing development spend ~30% reduction in unit drilling costs2 Replenishing the portfolio ~40% increase in lease position3 Anchor 1 Forecasted production. 2 Jun 2024 ye
Slide 5: Execution underpins Permian 1 MMBOED in 2025
Execution underpins Permian 1 MMBOED in 2025 Production1 Net MBOED Strong base business improved reliability Efficiency gains implementing and scaling triple-frac COOP well performance Delaware Basin ~10% improvement2 1 Forecasted production includes our interest in company-operated (COOP), non-oper
Slide 6: TCO update
TCO update July 2024 See appendix for slide notes providing definitions. © 2024 Chevron 6
Slide 7: Financial highlights
Financial highlights 2Q24 Earnings / Earnings per diluted share $4.4 billion / $2.43 1 Adjusted earnings / EPS $4.7 billion / $2.55 1 Cash flow from operations / excl. working capital $6.3 billion / $8.7 billion Total capex / Organic capex $4.0 billion / $3.9 billion 1,2 ROCE / Adjusted ROCE 9.9% /
Slide 8: Cash flow
Cash flow 2,3 3 $ billions Free cash flow Cash returned to shareholders Net debt ratio $2.3 billion $6.0 billion 10.7% CFFO Working excl. WC capital Capex (2.4) Dividends (4.0) Share repurchases 8.7 Asset sales / (3.0) other Debt 0.1 (3.0) 1.3 1Q24 2Q24 cash balance1 cash balance1 1 Includes cash, c
Slide 9: Earnings 2Q24 vs. 1Q24
Earnings 2Q24 vs. 1Q24 $ millions Upstream Downstream Other FX* Realizations Liftings Timing Tax / effects other (328) 235 Timing (270) (95) Margins effects Opex Chemicals Other Other (380) (19) (80) 65 (100) (500) 405 1Q24 2Q24 earnings earnings * Reconciliation of FX can be found in the appendix.
Slide 10: Earnings 2Q24 vs. 2Q23
Earnings 2Q24 vs. 2Q23 $ millions Upstream Downstream Other Liftings DD&A Special Tax / items* Realizations Opex other FX* 400 (385) (180) Margins (225) (253) 605 (304) Volumes Chemicals Opex Other Other (575) (95) 65 (225) (75) (199) 2Q23 2Q24 earnings earnings * Reconciliation of special items and
Slide 11: Worldwide net oil & gas production
Worldwide net oil & gas production 2Q24 vs. 2Q23 MBOED External Turnarounds / Base / Permian events downtime other DJ Basin 18 (31) (5) 112 239 • PDC Energy acquisition • Permian growth • Turnaround at TCO • Downtime in Australia $78/BBL $85/BBL Brent Brent Note: Numbers may not sum due to rounding.
Slide 12: Forward guidance
Forward guidance 3Q24 outlook Turnarounds & downtime: ~(130) MBOED Upstream Discontinued operations payment: ~$(600)MM Downstream Turnarounds (A/T earnings): $(150) – $(250)MM Affiliate dividends: ~$1B Share repurchases: $4 – $4.75B Corporate Full year 2024 outlook Capex guidance: $15.5 – $16.5B Wor
Slide 13: Questions & answers
questions answers © 2024 Chevron 13
Slide 14: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q23 2Q23 3Q23 4Q23 FY 2023 1Q24 2Q24 YTD 2024 Reported earnings ($ millions) Upstream 5,161 4,936 5,755 1,586 17,438 5,239 4,470 9,709 Downstream 1,800 1,507 1,683 1,147 6,137 783 597 1,380 All Other (387) (433) (9
Slide 15: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Adjusted ROCE $ millions 2Q24 $ millions 2Q24 Total reported earnings 4,434 Adjusted earnings 4,677 Non-controlling interest 9 Non-controlling interest 9 Interest expense (A/T) 103 Interest expense (A/T) 103 ROCE earnings 4,546 Adjusted ROCE earnings 4,7
Slide 16: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Cash flow from operations excluding working capital Free cash flow Free cash flow excluding working capital $ millions 2Q24 Net cash provided by operating activities 6,295 Less: Net decrease (increase) in operating working capital (2,431) Cash Flow from
Slide 17: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Net debt ratio $ millions 2Q24 Short term debt 1,735 Long term debt* 21,449 Total debt 23,184 Less: Cash and cash equivalents 4,008 Less: Marketable securities - Total adjusted debt 19,176 Total Chevron Corporation Stockholders’ Equity 159,233 Total adju
Slide 18: U.S. upstream earnings: 2Q24 vs. 1Q24
Appendix U.S. upstream earnings: 2Q24 vs. 1Q24 $ millions Realizations Liftings Other (30) (29) 115 • Higher liquids realizations • Lower gas realizations • Timing effects: • 2Q24: $2 • Absence of 1Q24: $28 1Q24 2Q24 earnings earnings © 2024 Chevron 18
Slide 19: International upstream earnings: 2Q24 vs. 1Q24
Appendix International upstream earnings: 2Q24 vs. 1Q24 $ millions FX Realizations Liftings (259) 120 Tax / (240) other • Higher liquids realizations • Lower gas liftings (351) • Absence of favorable tax item • Higher exploration expense • Timing effects: • 2Q24: $(57) • Absence of 1Q24: $(68) 1Q24
Slide 20: U.S. downstream earnings: 2Q24 vs. 1Q24
Appendix U.S. downstream earnings: 2Q24 vs. 1Q24 $ millions Margins Timing • Lower refining margins effects Other • Timing effects: (53) • 2Q24: $28 (190) 70 • Absence of 1Q24: $42 1Q24 2Q24 earnings earnings © 2024 Chevron 20
Slide 21: International downstream earnings: 2Q24 vs. 1Q24
Appendix International downstream earnings: 2Q24 vs. 1Q24 $ millions Chemicals Opex FX Timing Other effects Margins 45 (57) (70) 44 • Lower refining margins • Higher chemicals • Higher opex • Timing effects: • 2Q24: $97 • Absence of 1Q24: $238 (310) 335 1Q24 2Q24 earnings earnings © 2024 Chevron 21
Slide 22: Worldwide net oil & gas production: 2Q24 vs. 1Q24
Appendix Worldwide net oil & gas production: 2Q24 vs. 1Q24 MBOED Downtime Base / Shale & other tight (55) (18) 19 • Downtime in Australia • Permian production growth $83/BBL $85/BBL Brent Brent Note: Numbers may not sum due to rounding. © 2024 Chevron 22
Slide 23: Slide notes
Appendix Slide notes Slide 6 – TCO update • WPMP – Wellhead Pressure Management Project • FGP – Future Growth Project • KTL – Komplex Technology Line (includes 5 trains) • GTG – Gas Turbine Generator (includes 5 generators) • SGP – Second-Generation Plant (includes 1 train) • SGI – Second-Generation