Chevron Corporation · NYSE:CVX
Chevron — Q3 2023 Earnings Presentation
20 slides from Chevron's earnings presentation, Oct 27, 2023
Slide 1: Third quarter 2023 earnings call
Third quarter 2023 earnings call October 27, 2023 © 2023 Chevron 3GP at TCO
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: Delivering value in 3Q 2023
Delivering value in 3Q 2023 Higher cash Disciplined growth Lower carbon $20 billion ROCE >12% Acquired majority stake in ACES cash returned to shareholders1 for nine consecutive quarters3 hydrogen hub in Utah <10% PDC Energy Completed El Segundo net debt ratio2 acquisition closed flexible renewable
Slide 4: FGP-WPMP outlook
FGP-WPMP outlook TCO production profile (100%) 2 MBOED 1,000 FGP mechanically complete in 3Q 2023 WPMP field conversion to begin in 1H 2024 500 First oil from FGP in 1H 2025 3 - 5% increase in cost estimate1 0 2023 2024 2025 FGP – Future Growth Project 1 Chevron’s view of FGP-WPMP based on an indepe
Slide 5: Financial highlights
Financial highlights 3Q23 Earnings / Earnings per diluted share $6.5 billion / $3.48 1 Adjusted Earnings / EPS $5.7 billion / $3.05 1 Cash flow from operations / excl. working capital $9.7 billion / $8.9 billion Total Capex / Organic Capex $4.7 billion / $4.3 billion 1,2 ROCE / Adjusted ROCE 14.5% /
Slide 6: Delivering on financial priorities
Delivering on financial priorities Free Cash returned Net debt $ billions cash flow 2, 3 to shareholders ratio 3 $5.0B $6.2B 8.1% Working CFFO capital Capex excl. WC 0.8 Dividends (4.7) Share repurchases (2.9) 8.9 Debt (3.4) Other (2.4) (0.0) 9.6 5.9 2Q23 3Q23 cash balance1 cash balance1 1 Includes
Slide 7: Chevron earnings 3Q23 vs. 3Q22
Chevron earnings 3Q23 vs. 3Q22 $ millions Upstream Downstream Other Special items* FX* Realizations (339) 697 Timing Tax / DD&A effects Timing Liftings other Margins Volume effects (3,780) (45) 155 (220) (366) (115) Other Other 300 (825) (52) (115) 11,231 6,526 3Q22 3Q23 earnings earnings * Reconcil
Slide 8: Chevron earnings 3Q23 vs. 2Q23
Chevron earnings 3Q23 vs. 2Q23 $ millions Upstream Downstream Other Liftings DD&A Timing Timing Realizations effects Margins effects Tax / Opex Opex Special 380 (330) other Chemicals Other FX* (320) Other items* (220) (515) (95) (70) 700 (300) 880 (44) (120) 275 295 6,526 6,010 2Q23 3Q23 earnings ea
Slide 9: Worldwide net oil & gas production
Worldwide net oil & gas production 3Q23 vs. 2Q23 MBOED Base / External Turnarounds / PDC other events downtime Energy 14 26 (31) • PDC Energy acquisition 179 • Absence of Canadian wildfires • Turnarounds at TCO and in Australia 3,146 2,959 2Q23 3Q23 $78/BBL $87/BBL Brent Brent Note: Numbers may not
Slide 10: Forward guidance
Forward guidance 4Q23 Turnarounds & downtime: ~(60) MBOED UPSTREAM PDC Energy capex ~$300MM PDC Energy production ~265 MBOED DOWNSTREAM Refinery turnarounds (A/T earnings): $(100) - $(200)MM Affiliate dividends: $2 - $2.5B CORPORATE Share repurchases: $3B +/- 20% Employees at one of our newest tankl
Slide 11: Questions and answers
questions answers © 2023 Chevron Corporation 11
Slide 12: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 YTD 2023 Reported earnings ($ millions) Upstream 6,934 8,558 9,307 5,485 30,284 5,161 4,936 5,755 15,852 Downstream 331 3,523 2,530 1,771 8,155 1,800 1,507 1,683 4,990 All Oth
Slide 13: 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 3Q23 YTD 2023 Net cash provided by operating activities 7,205 6,297 9,673 23,175 Less: Net decrease (increase) in operating w
Slide 14: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Net debt ratio $ millions 3Q23 Short term debt 440 Long term debt* 20,119 Total debt 20,559 Less: Cash and cash equivalents 5,797 Less: Marketable securities 141 Total adjusted debt 14,621 Total Chevron Corporation Stockholders’ Equity 165,265 Total adju
Slide 15: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Adjusted ROCE $ millions 3Q23 $ millions 3Q23 Total reported earnings 6,526 Adjusted earnings 5,721 Non-controlling interest 29 Non-controlling interest 29 Interest expense (A/T) 104 Interest expense (A/T) 104 ROCE earnings 6,659 Adjusted ROCE earnings 5
Slide 16: Worldwide net oil & gas production: 3Q23 vs. 3Q22
Appendix Worldwide net oil & gas production: 3Q23 vs. 3Q22 MBOED Shale & Entitlement Base / PDC tight price effects other Turnarounds / Energy downtime 16 64 (75) (66) • PDC Energy acquisition 179 • Permian growth • Base / other: normal field decline, non-price entitlement effects and 3,027 3,146 de
Slide 17: U.S. upstream earnings: 3Q23 vs. 2Q23
Appendix U.S. upstream earnings: 3Q23 vs. 2Q23 $ millions Liftings DD&A Opex Timing (195) Realizations effects Other (225) 455 (75) (56) • Higher liquids realizations • Higher production, DD&A and 530 opex due to PDC Energy acquisition 2,074 • Timing effects: 1,640 • 3Q23: $(53) • Absence of 2Q23: $
Slide 18: International upstream earnings: 3Q23 vs. 2Q23
Appendix International upstream earnings: 3Q23 vs. 2Q23 $ millions Special Realizations Liftings Timing DD&A items* effects (75) Tax / 170 (135) FX other 335 (245) (239) • Higher liquids realizations 574 • Lower gas realizations • Unfavorable liquids and LNG inventory timing effects 3,681 3,296 • Ti
Slide 19: U.S. downstream earnings: 3Q23 vs. 2Q23
Appendix U.S. downstream earnings: 3Q23 vs. 2Q23 $ millions Timing Margins effects Chemicals Opex / (150) other (80) (105) • Higher refining margins • Lower chemicals 630 • Timing effects: • 3Q23: $(112) 1,376 • Absence of 2Q23: $(38) 1,081 2Q23 3Q23 earnings earnings © 2023 Chevron Corporation 19
Slide 20: International downstream earnings: 3Q23 vs. 2Q23
Appendix International downstream earnings: 3Q23 vs. 2Q23 $ millions Timing Margins effects • Higher refining margins • Timing effects: FX • 3Q23: $(283) 250 20 • Absence of 2Q23: $(82) Other (365) (24) 426 307 2Q23 3Q23 earnings earnings © 2023 Chevron Corporation 20