Chevron Issues Interim Update for Fourth Quarter 2012

  Chevron Issues Interim Update for Fourth Quarter 2012

Business Wire

SAN RAMON, Calif. -- January 10, 2013

Chevron Corporation (NYSE: CVX) today reported in its interim update that
earnings for the fourth quarter 2012 are expected to be notably higher than
third quarter 2012. Upstream results are projected to be higher between
sequential quarters, reflecting increased gains on asset transactions and
higher liftings. Downstream earnings in the fourth quarter are also expected
to be higher, largely reflecting a positive swing in timing effects, despite a
sharp decline in industry refining margins.

Basis for Comparison in Interim Update

This interim update contains certain industry and company operating data for
the fourth quarter 2012. The production volumes, realizations, margins and
certain other items in the report are based on a portion of the quarter and
are not necessarily indicative of Chevron's full quarterly results to be
reported on February 1, 2013. The reader should not place undue reliance on
this data.

Readers are advised that portions of the commentary below compare results for
the first two months of the fourth quarter 2012 to full third quarter 2012
results, as indicated.


The table that follows includes information on production and price indicators
for crude oil and natural gas for specific markets. Actual realizations may
vary from indicative pricing due to quality and location differentials and the
effect of pricing lags. International earnings reflect actual liftings, which
may differ from production due to the timing of cargoes and other factors.

                         2011    2012
                                                               4Q       4Q
                           4Q       1Q      2Q      3Q      thru    thru
                                                               Nov      Dec
U.S. Upstream
Net Production:
Liquids            MBD     447      456      461      440      467      n/a
Natural Gas        MMCFD   1,290    1,170    1,186    1,184    1,261    n/a
Total              MBOED   661      651      659      637      676      n/a
Avg. WTI Spot      $/Bbl   93.98    103.00   93.34    92.25    88.21    88.22
Avg. Midway
Sunset Posted      $/Bbl   107.83   112.01   102.72   100.71   98.32    98.59
Nat. Gas-Henry
Hub "Bid Week"     $/MCF   3.55     2.73     2.21     2.81     3.25     3.40
Nat. Gas-CA
Border "Bid        $/MCF   3.74     2.96     2.40     2.46     2.96     3.37
Week" Avg.
Nat. Gas-Rocky
Mountain "Bid      $/MCF   3.35     2.56     1.88     2.91     3.15     3.56
Week" Avg.
Crude              $/Bbl   105.37   108.37   103.91   97.34    97.61    n/a
Liquids            $/Bbl   100.65   101.93   97.46    90.77    91.11    n/a
Natural Gas        $/MCF   3.62     2.48     2.17     2.63     3.14     n/a
Net Production:
Liquids            MBD     1,369    1,338    1,317    1,249    1,335    n/a
Natural Gas        MMCFD   3,658    3,849    3,894    3,778    3,900    n/a
Total Oil          MBOED   1,980    1,980    1,965    1,879    1,986    n/a
Avg. Brent Spot    $/Bbl   109.35   118.60   108.29   109.50   110.38   110.08
Price ^2
Liquids            $/Bbl   101.33   110.03   99.21    98.20    100.06   n/a
Natural Gas       $/MCF  5.55    5.88    6.10    6.03    5.94    n/a
^1 As of second quarter 2012, Avg. Midway Sunset Posted Price is based on the
average of four companies’ posted prices to better reflect realizations. Prior
to second quarter 2012, the price is based only on the Chevron average

^2 The Avg. Brent Spot Price is based on Platts daily assessments, using
Chevron’s internal formula to produce a quarterly average.

U.S. net oil-equivalent production increased 39,000 barrels per day during the
first two months of the fourth quarter, reflecting recovery from the impacts
of Hurricane Isaac and an increase in production associated with recently
acquired acreage in the Permian Basin. International net oil-equivalent
production during the first two months of the fourth quarter increased 107,000
barrels per day, mainly due to the absence of planned maintenance in
Kazakhstan and the United Kingdom.

International upstream earnings in the fourth quarter are expected to include
a gain of approximately $1.4 billion from a previously announced asset
exchange in Australia, compared to a gain of $600 million in the third quarter
associated with the sale of an equity interest in the Wheatstone project.

U.S. crude oil realizations increased $0.27, to $97.61 per barrel during the
first two months of the fourth quarter, consistent with the typical monthly
lag on pricing in the Gulf of Mexico. International liquids realizations
increased $1.86, to $100.06 per barrel. U.S. natural gas realizations
increased $0.51 to $3.14 per thousand cubic feet, while international natural
gas realizations decreased $0.09 to $5.94 per thousand cubic feet during the
first two months of the fourth quarter.


The table that follows includes industry benchmark indicators for refining and
marketing margins. Actual margins realized by the company will differ due to
crude and product mix effects, planned and unplanned shutdown activity and
other company-specific and operational factors.

                         2011     2012
                                                                 4Q      4Q
                           4Q        1Q       2Q       3Q     thru   thru
                                                                 Nov     Dec
Market           $/Bbl
U.S. West
Coast –                    14.45     19.64     21.32     24.37   23.45   19.45
U.S. Gulf
Coast – Maya               11.84     20.56     24.89     28.19   24.15   23.24
Singapore –                8.77      9.73      9.30      10.77   7.59    7.17
Dubai 3-1-1-1
U.S. West –
Weighted DTW               5.39      4.16      10.14     5.74    9.76    8.85
to Spot
U.S. East –
Houston Mogas              4.35      3.90      5.10      3.99    4.98    5.21
Rack to Spot
/ Middle East              5.65      4.75      6.98      6.08    6.63    4.39
/ Africa
U.S. Refinery    MBD       763       926       928       779     702     n/a
Refinery         MBD       805       779       870       909     918     n/a
U.S. Branded     MBD       515       505       521       519     511     n/a
Mogas Sales

^1 As of June 2012, Star Petroleum Refining Company crude-input volumes are
reported on a consolidated basis. Prior to June 2012, crude-input volumes are
reported on a net interest basis.

For the full fourth quarter, U.S. and international refining margins decreased
significantly compared to third quarter 2012. International marketing margins
also declined, while U.S. marketing margins improved from the previous

During the first two months of the fourth quarter, U.S. refinery crude-input
volumes decreased by 77,000 barrels per day compared to the third quarter,
driven primarily by the continued shutdown of the Richmond, California
refinery crude unit. A return to normal operations at the Pascagoula,
Mississippi refinery post Hurricane Isaac partly offset the decrease.
International refinery crude-input volumes increased 9,000 barrels per day
compared to the third quarter.

                                  ALL OTHER

The company’s general guidance for the quarterly net after-tax charges related
to corporate and other activities is between $300 million and $400 million.
Due to the potential for non-ratable accruals related to income taxes, pension
settlements, environmental and other matters, actual results may significantly
differ from the guidance range. Total net charges for the fourth quarter are
expected to be notably higher than the general guidance range.


Chevron’s discussion of fourth quarter 2012 earnings with security analysts
will take place on Friday, February 1, 2013, at 8:00 a.m. PST. A webcast of
the meeting will be available in a listen-only mode to individual investors,
media, and other interested parties on Chevron’s website at
under the “Investors” section. Additional financial and operating information
will be contained in the Earnings Supplement that will be available under
“Events & Presentations” in the “Investors” section on the website.




This interim update of Chevron Corporation contains forward-looking statements
relating to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum, chemicals and
other energy-related industries. Words such as “anticipates,” “expects,”
“intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,”
“schedules,” “estimates,” “budgets,” “outlook” and similar expressions are
intended to identify such forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, many of which are beyond the company’s
control and are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in such
forward-looking statements. The reader should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
interim update. Unless legally required, Chevron undertakes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing crude
oil and natural gas prices; changing refining, marketing and chemical margins;
actions of competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy sources or
product substitutes; technological developments; the results of operations and
financial condition of equity affiliates; the inability or failure of the
company’s joint-venture partners to fund their share of operations and
development activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas development
projects; potential delays in the development, construction or start-up of
planned projects; the potential disruption or interruption of the company’s
production or manufacturing facilities or delivery/transportation networks due
to war, accidents, political events, civil unrest, severe weather or crude oil
production quotas that might be imposed by the Organization of Petroleum
Exporting Countries; the potential liability for remedial actions or
assessments required by existing or future environmental regulations and
litigation; significant investment or product changes required by existing or
future environmental statutes, regulations and litigation; the potential
liability resulting from other pending or future litigation; the company’s
future acquisition or disposition of assets and gains and losses from asset
dispositions or impairments; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes, changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; the effects of changed accounting rules under
generally accepted accounting principles promulgated by rule-setting bodies;
and the factors set forth under the heading “Risk Factors” on pages 29 through
31 of the company’s 2011 Annual Report on Form 10-K. In addition, such results
could be affected by general domestic and international economic and political
conditions. Other unpredictable or unknown factors not discussed in this
interim update could also have material adverse effects on forward-looking


Chevron Corporation
Justin Higgs, 925-842-6175
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