Slide 1: Fourth quarter 2023 earnings call
Fourth quarter 2023 earnings call February 2, 2024 © 2024 Chevron DJ 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: Winning combination
Winning combination Higher returns Lower carbon 14% Completed El Segundo adjusted ROCE flexible renewable unit conversion2 1 Record $26 billion Acquired majority stake in ACES Delta cash returned to shareholders hydrogen hub in Utah Closed PDC Energy & Expanded Bayou Bend CCS announced Hess acquisit
Slide 4: Delivering unmatched value to shareholders
Delivering unmatched value to shareholders Leading capital efficiency1 Higher dividend per share growth 2019-2023 5-year CAGR 2 2 Chevron S&P 500 Peers Chevron S&P 500 Peers 60% 10% 45% Capital and cost 5% 30% discipline 0% 15% -5% 0% Leading dividend -10% Cost focus per share growth More cash retur
Slide 5: Strong Permian execution and outlook
Strong Permian execution and outlook Production Production Net MBOED Net MBOED COOP NOJV Royalty MB DB-TX DB-NM Actual Diversified 1,000 portfolio 1,000 High 750 750 returns 500 ~10% 500 2023 growth 250 On track to achieve 250 1 MMBOED in 2025 0 0 2H23 1H24 2H24 2019 2020 2021 2022 2023 2024 2025 CO
Slide 6: TCO update
TCO update Legacy Existing high pressure KTLs Milestones Base wells Upgraded Sour gas injection gathering SGP SGI system 4Q23 Future Future Power available from GTGs low high PBF WPMP pressure compressors pressure 1Q24 & pumps Inlet separators Metering Inlet separator ready for operation station con
Slide 7: Financial highlights
Financial highlights 4Q23 2023 Earnings / Earnings per diluted share $2.3 billion / $1.22 $21.4 billion / $11.36 1 Adjusted earnings / EPS $6.5 billion / $3.45 $24.7 billion / $13.13 1 Cash flow from operations / excl. working capital $12.4 billion / $11.4 billion $35.6 billion / $38.8 billion Total
Slide 8: Chevron earnings 4Q23 vs. 3Q23
Chevron earnings 4Q23 vs. 3Q23 $ millions Upstream Downstream Other Special items* 6,526 Tax / Timing other Margins Timing FX* Opex Other Liftings DD&A effects effects Opex (4,235) 97 Other 135 Realizations (120) 215 (130) (64) 334 (764) Volume (130) 655 2,259 (1,245) 105 880 3Q23 4Q23 earnings earn
Slide 9: Chevron earnings 2023 vs. 2022
Chevron earnings 2023 vs. 2022 $ millions Upstream Downstream Other Special items* FX* Realizations (1,354) (893) Tax / Opex other Margins Timing Liftings DD&A Opex Other Volume effects Other 220 375 54 (13,085) 1,615 (1,890) 315 325 (850) 329 743 35,465 21,369 2022 2023 earnings earnings * Reconcil
Slide 10: Consistent financial priorities
Consistent financial priorities 2,3 $ billions Free cash flow Cash returned to Net debt $20 billion shareholders ratio 3 Grow the dividend $26 billion 7.3% CFFO Working consistently excl. WC capital Capex (3.2) Invest Dividends capital efficiently (15.8) Share repurchases (11.3) Maintain a strong ba
Slide 11: 2024 production outlook
2024 production outlook MBOED Other organic Base / Expected growth other Permian asset sales DJ Basin ~(30) ~30 ~(30) ~75 +4% to +7% ~125 Growth Full year of PDC Energy Permian growth ~10% 3,120 More asset sales 2023 2024 Guidance $83/BBL Brent $80/BBL Brent © 2024 Chevron Corporation 11
Slide 12: Forward guidance
Forward guidance 1Q24 outlook Full year 2024 outlook Production outlook: +4% to +7% UPSTREAM Turnarounds & downtime: ~(70) MBOED (incl. expected 2024 asset sales) DOWNSTREAM Turnarounds (A/T earnings): $(250) - $(350)MM 1 Adjusted “All Other” segment earnings : ~$(2.2)B 2 Affiliate dividends : ~$4B
Slide 13: Questions and answers
questions answers © 2024 Chevron Corporation 13
Slide 14: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Reported earnings to adjusted earnings 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 Reported earnings ($ millions) Upstream 6,934 8,558 9,307 5,485 30,284 5,161 4,936 5,755 1,586 17,438 Downstream 331 3,523 2,530 1,771 8,155 1,800 1,507 1,683 1,147
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 3Q23 4Q23 FY23 Net cash provided by operating activities 7,205 6,297 9,673 12,434 35,609 Less: Net decrease (increase) in ope
Slide 16: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Net debt ratio $ millions 2023 Short term debt 529 Long term debt* 20,307 Total debt 20,836 Less: Cash and cash equivalents 8,178 Less: Marketable securities 45 Total adjusted debt 12,613 Total Chevron Corporation Stockholders’ Equity 160,957 Total adjus
Slide 17: Appendix: reconciliation of non-GAAP measures
Appendix: reconciliation of non-GAAP measures Adjusted ROCE $ millions 2023 $ millions 2023 Total reported earnings 21,369 Adjusted earnings 24,693 Non-controlling interest 42 Non-controlling interest 42 Interest expense (A/T) 432 Interest expense (A/T) 432 ROCE earnings 21,843 Adjusted ROCE earning
Slide 18: U.S. upstream earnings: 4Q23 vs. 3Q23
Appendix U.S. upstream earnings: 4Q23 vs. 3Q23 $ millions Special items* 2,074 • Lower liquids realizations • Higher liquids liftings • Higher production, DD&A and opex due to PDC Energy acquisition (1,347) Timing • Timing effects: Liftings DD&A effects Other • 4Q23: $27 Realizations (120) 80 (26) •
Slide 19: International upstream earnings: 4Q23 vs. 3Q23
Appendix International upstream earnings: 4Q23 vs. 3Q23 $ millions FX Special items* Tax / other • Higher gas realizations Timing (746) effects Opex • Higher liquids liftings 133 Liftings Realizations 135 125 • Lower opex 65 3,681 (560) 100 • Timing effects: 2,933 • 4Q23: $(12) • Absence of 3Q23: $1
Slide 20: U.S. downstream earnings: 4Q23 vs. 3Q23
Appendix U.S. downstream earnings: 4Q23 vs. 3Q23 $ millions Margins • Lower refining margins • Higher refining volumes • Timing effects: • 4Q23: $108 1,376 Timing Opex / effects other • Absence of 3Q23: $112 (66) Volume 220 470 (1,175) 115 3Q23 4Q23 earnings earnings © 2024 Chevron Corporation 20
Slide 21: International downstream earnings: 4Q23 vs. 3Q23
Appendix International downstream earnings: 4Q23 vs. 3Q23 $ millions Timing effects Opex Other (125) • Lower refining margins (13) • Higher opex • Timing effects: • 4Q23: $377 FX 677 677 • Absence of 3Q23: $283 Margins (82) 307 (70) 660 3Q23 4Q23 earnings earnings © 2024 Chevron Corporation 21
Slide 22: Worldwide net oil & gas production: 4Q23 vs. 3Q23
Appendix Worldwide net oil & gas production: 4Q23 vs. 3Q23 MBOED Turnarounds / External Base / Shale & downtime events other tight PDC (16) (3) Energy 60 118 87 • PDC Energy acquisition • Permian production growth 3,392 • Absence of turnarounds at 3,146 TCO and in Australia 3Q23 4Q23 $87/BBL $84/BBL
Slide 23: Worldwide net oil & gas production: 2023 vs. 2022
Appendix Worldwide net oil & gas production: 2023 vs. 2022 MBOED Shale & Entitlement Base / PDC tight price effects other Energy 14 78 (83) • PDC Energy acquisition 112 • Permian production growth • Base / other: normal field decline, Thailand contract 2,999 3,120 expiration and unplanned downtime,
Slide 24: Permian 2023 COOP well performance
Appendix Permian 2023 COOP well performance Midland Basin Delaware Basin – Texas Delaware Basin – New Mexico Sub-basin industry leader Improved performance 12% production growth in 2023 53 POPs in 2023 93 POPs in 2023 49 of 59 POPs in 2H MB well performance DB-TX well performance DB-NM well performa
Slide 25: Reserves and resources
Appendix Reserves and resources 1-year reserve replacement 10-year resource replenishment BBOE Total 6P BBOE (1.1) 31.5 1.0 <(0.1) 1-year (10.5) 86% RRR (13.7) in 2023 11.2 11.1 75.2 67.9 10-year net adds exceed production and sales YE 2022 Production Asset Net YE 2023 YE 2013 Production Asset Net Y
Slide 26: Slide notes
Appendix Slide notes Slide 4 – Delivering unmatched value to shareholders • 3Q 2023 YTD data are used for all charts except dividend per share growth where full-year 2023 data were available and used. • Capital efficiency – Calculated as cumulative capital expenditures, cash acquisitions and loans t