Slide 1: Second quarter 2023 earnings call
Second quarter 2023 earnings call July 28, 2023 © 2023 Chevron Delaware Basin
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 The statements and images in this presentation are forward-looking statements relating to Chevron’s operations and en
Slide 3: Financial highlights
Financial highlights 2Q23 Earnings / Earnings per diluted share $6.0 billion / $3.20 1 Adjusted Earnings / EPS $5.8 billion / $3.08 1 Cash flow from operations / excl. working capital $6.3 billion / $9.4 billion Total Capex / Organic Capex $3.8 billion / $3.6 billion 1,2 ROCE / Adjusted ROCE 13.4% /
Slide 4: Delivering FGP-WPMP at TCO
Delivering FGP-WPMP at TCO Project update Project outlook FGP-WPMP project 98% complete WPMP and FGP start-up on track Commissioning activity ~66% complete Cost and schedule guidance unchanged FGP-WPMP schedule Commissioning Start-up Operational WPMP FGP Third Generation Processing Plant (3GP) 1H23
Slide 5: Permian COOP well performance on plan
Permian COOP well performance on plan Midland Basin Delaware Basin – Texas Delaware Basin – New Mexico ~75% multi-bench Mix of single and multi-bench Single bench 28 POPs 1H 2023 58 POPs 1H 2023 10 POPs 1H 2023 MB well performance DB-TX well performance DB-NM well performance Produced volume per 2 m
Slide 6: High quality, long duration resource
High quality, long duration resource Permian inventory Permian long-term production Large diverse portfolio of economic resource Over 15 years of production >1 MMBOED Net inventory locations* Net production* MMBOED >6,600 locations 1 >2,200 locations 0 5-Year Plan Longer-Term Plan 2023 2025 2030 203
Slide 7: Portfolio updates
Portfolio updates Gulf of Mexico Eastern Mediterranean PDC Energy acquisition Anchor project FPU moored on location Drilled Aphrodite appraisal well Expect to close in August 2023 Awarded 73 blocks in lease sale 259 Leviathan pipeline capacity expansion Synergies aligned with guidance Anchor project
Slide 8: Delivering on financial priorities
Delivering on financial priorities $ billions Free Shareholder Net debt cash flow 2, 3 returns ratio 3 $2.5B $7.2B 7% CFFO Working excl. WC capital Capex (3.1) Dividends (3.8) Share repurchases 9.4 (2.8) Debt (4.4) Other (1.6) 0.1 15.8 9.6 1Q23 2Q23 1 1 cash balance cash balance 1 Includes cash, cas
Slide 9: Chevron earnings 2Q23 vs. 2Q22
Chevron earnings 2Q23 vs. 2Q22 $ millions Upstream Downstream Other Special items* FX* Realizations 636 (658) Timing Other Margins Liftings DD&A effects Timing 95 155 421 Volume effects Opex Other (4,740) 415 Other 11,622 (1,720) 60 70 25 (61) (310) 6,010 2Q22 2Q23 earnings earnings * Reconciliation
Slide 10: Chevron earnings 2Q23 vs. 1Q23
Chevron earnings 2Q23 vs. 1Q23 $ millions Upstream Downstream Other Special items* FX* Realizations 50 Other Margins 355 Liftings DD&A Volumes Other Other (20) 219 (29) (44) (1,025) 180 (400) 150 6,574 6,010 1Q23 2Q23 earnings earnings * Reconciliation of special items and FX can be found in the app
Slide 11: Worldwide net oil & gas production
Worldwide net oil & gas production 2Q23 vs. 1Q23 MBOED Shale & Turnarounds / tight downtime External events Base / other (42) 58 (19) (16) • Permian production growth • Turnarounds at Gorgon and in the Gulf of Mexico • Canadian wildfires 2,979 2,959 1Q23 2Q23 $81/BBL $78/BBL Brent Brent Note: Number
Slide 12: Forward guidance
Forward guidance 3Q23 UPSTREAM Turnarounds & downtime: ~(110) MBOED DOWNSTREAM Refinery turnarounds (A/T earnings): $(50) - $(150)MM CORPORATE Share repurchases: >$3.0B Drone operator © 2023 Chevron Corporation 12
Slide 13: Questions and answers
questions answers © 2023 Chevron Corporation 13
Slide 14: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 YTD 2023 Reported earnings ($ millions) Upstream 6,934 8,558 9,307 5,485 30,284 5,161 4,936 10,097 Downstream 331 3,523 2,530 1,771 8,155 1,800 1,507 3,307 All Other (1,006) (459)
Slide 15: 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 1Q23 2Q23 YTD 2023 Net cash provided by operating activities 7,205 6,297 13,502 Less: Net decrease (increase) in operating working capi
Slide 16: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Net debt ratio $ millions 2Q23 Short term debt 1,269 Long term debt* 20,245 Total debt 21,514 Less: Cash and cash equivalents 9,292 Less: Marketable securities 318 Total adjusted debt 11,904 Total Chevron Corporation Stockholders’ Equity 158,325 Total ad
Slide 17: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Adjusted ROCE $ millions 2Q23 $ millions 2Q23 Total reported earnings 6,010 Adjusted earnings 5,775 Non-controlling interest (2) Non-controlling interest (2) Interest expense (A/T) 111 Interest expense (A/T) 111 ROCE earnings 6,119 Adjusted ROCE earnings
Slide 18: Worldwide net oil & gas production: 2Q23 vs. 2Q22
Appendix Worldwide net oil & gas production: 2Q23 vs. 2Q22 MBOED Shale & Entitlement External Base / tight price effects events other 17 6 (46) 85 • Primarily Permian growth • Normal field decline 2,896 2,959 2Q22 2Q23 $114/BBL $78/BBL Brent Brent Note: Numbers may not sum due to rounding. © 2023 Ch
Slide 19: U.S. upstream earnings: 2Q23 vs. 1Q23
Appendix U.S. upstream earnings: 2Q23 vs. 1Q23 $ millions Realizations Liftings DD&A Other (55) 44 (315) 185 • Lower liquids and gas realizations • Higher Permian production 1,781 1,640 1Q23 2Q23 earnings earnings © 2023 Chevron Corporation 19
Slide 20: International upstream earnings: 2Q23 vs. 1Q23
Appendix International upstream earnings: 2Q23 vs. 1Q23 $ millions Special items* Realizations FX Other 66 355 Liftings DD&A 175 (710) (5) 35 • Lower gas realizations 3,380 3,296 1Q23 2Q23 earnings earnings * Reconciliation of special items can be found in the appendix. © 2023 Chevron Corporation 20
Slide 21: U.S. downstream earnings: 2Q23 vs. 1Q23
Appendix U.S. downstream earnings: 2Q23 vs. 1Q23 $ millions Volumes Other Margins 24 (75) 155 • Lower refining margins • Higher refining volumes • Timing effects: 1,081 • 2Q23: $38 977 • Absence of 1Q23: $(26) 1Q23 2Q23 earnings earnings © 2023 Chevron Corporation 21
Slide 22: International downstream earnings: 2Q23 vs. 1Q23
Appendix International downstream earnings: 2Q23 vs. 1Q23 $ millions FX Margins (14) • Lower refining margins Opex Other • Lower opex (325) 60 • Lower trading results 823 (118) • Timing effects: • 2Q23: $82 426 • Absence of 1Q23: $(75) 1Q23 2Q23 earnings earnings © 2023 Chevron Corporation 22