Chevron Corporation · NYSE:CVX
Chevron — ChevronTexaco — Merger or Acquisition (April 2005)
18 slides from Chevron's merger presentation, Apr 4, 2005
Slide 1: Leveraging our Strengths
San Ramon April 4, 2005 Leveraging our Strengths Dave O'Reilly Chairman & CEO
Slide 2: Cautionary Statements Relevant to Forward-Looking Information
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Except for the historical and factual information contained herein, the matters set forth in this presentation, including statements as to
Slide 3: A Unique Opportunity To Leverage Our Combined Strengths
A Unique Opportunity To Leverage Our Combined Strengths ChevronTexaco Unocal
Slide 4: Key Drivers
Key Drivers Adds immediate and long-term resources Provides enhanced production volume growth Provides leading natural gas position in Asia Enhances CVX' core deepwater Gulf of Mexico position Adds to Caspian assets, including pipeline capacity
Slide 5: Key Drivers
Key Drivers Offers opportunities for CVX to extract additional value through project execution Offers significant synergy capture opportunities Will integrate efficiently - excellent asset portfolio fit Brings together talented employees worldwide Will rationalize portfolio, e.g. certain asset dispo
Slide 6: Terms of Transaction
Terms of Transaction 75% Tax-free exchange of stock at ratio: 1.03 ChevronTexaco: 1 Unocal 25% Cash Value of transaction $18.4 Billion (incl. Unocal net debt) Principal conditions to close Unocal shareholders' approval Regulatory clearances
Slide 7: Financial Impact
Financial Impact Accretive to cashflow per share Broadly neutral to EPS We will increase share repurchases to offset effect on EPS over time Dilutive to ROCE Intend to remain top tier Adds value on an economic return basis CVX ROCE calculated by dividing net income (adjusted for after-tax interest e
Slide 8: Unocal Portfolio
Unocal Portfolio Azerbaijan Azerbaijan Vietnam Production Operations Exploration Provinces Indonesia USA Bangladesh Canada Thailand Myanmar
Slide 9: Reserves Profile
Reserves Profile Gas Oil ChevronTexaco 29 71 Gas Oil Combined 34 66 ChevronTexaco ChevronTexaco & Unocal 2004 Proved Reserves (1) Oil Gas 11.25 BBOE 13.01 BBOE Total proved reserves shown above include consolidated companies and equity interests in affiliates, as provided in the companies' most rece
Slide 10: Production Profile
Production Profile 2004 CVX Actual 2005 2006 2007 2008 2009 ChevronTexaco 2509 2501 2592 2762 3072 3117 Unocal 0 411 439 475 517 543 ChevronTexaco & Unocal Pro-Forma Production, MBOED
Slide 11: Expanding Our Asia-Pacific Gas Business
Expanding Our Asia-Pacific Gas Business No. 1 in Thailand Bontang LNG in Indonesia Bangladesh Myanmar CHEVRONTEXACO + UNOCAL Liquefaction capacity Gas resource LNG supply
Slide 12: A Top Resource Holder in Asia-Pacific
A Top Resource Holder in Asia-Pacific Notes Source: Wood Mackenzie estimates for SE Asia plus Australia and Bangladesh based on Wood Mackenzie's definition of net "Commercial" + working interest "Technical" resources. Countries included: Australia, Bangladesh, Brunei, Cambodia, China, Indonesia, Mal
Slide 13: Enhances our Deepwater Gulf of Mexico Position
Enhances our Deepwater Gulf of Mexico Position HOUSTON NEW ORLEANS UNOCAL CVX
Slide 14: Adds Caspian Assets Including Pipeline Capacity
Adds Caspian Assets Including Pipeline Capacity Karachaganak CVX 20% TCO CVX 50% Exploration License CVX 50% Caspian Pipeline CVX 15% Connecting Pipeline CVX 20% PE Pipe Plant CVX 100% Karachaganak 20% TCO 50% Baku-Tbilisi-Ceyhan Pipeline 8.9% Caspian Pipeline 15% Connecting Pipeline 20% PE Pipe Pla
Slide 15: Significant Cost Synergies
Significant Cost Synergies Cost savings - Gulf of Mexico, Thailand and Corporate Exploration program - Highgrade Smooth and efficient integration Annual synergies over $325 million
Slide 16: Further Integration Benefits
Further Integration Benefits Adoption of operating best practices Unocal brings talented/skilled employees worldwide Unocal has over 40 years of business relationships in Southeast Asia
Slide 17: Summary
Summary Unique opportunity to capture high quality assets Excellent fit with ChevronTexaco core areas and strategies Meets financial requirements for investment based on disciplined assumptions Upside due to ChevronTexaco's ability to capture value from Unocal's significant resource base
Slide 18: Leveraging our Strengths
Leveraging our Strengths Leveraging our Strengths Leveraging our Strengths