Chevron Reports Fourth Quarter Net Income of $7.2 Billion and 2012 Earnings of $26.2 Billion

  Chevron Reports Fourth Quarter Net Income of $7.2 Billion and 2012 Earnings
  of $26.2 Billion

      Oil and gas reserves replacement reaches 112 percent for the year

Business Wire

SAN RAMON, Calif. -- February 1, 2013

Chevron Corporation (NYSE: CVX) today reported earnings of $7.2 billion ($3.70
per share – diluted) for the fourth quarter 2012, compared with $5.1 billion
($2.58 per share – diluted) in the 2011 fourth quarter. Results in the 2012
period included a gain of $1.4 billion from an upstream asset exchange.

Full-year 2012 earnings were $26.2 billion ($13.32 per share – diluted), down
3 percent from $26.9 billion ($13.44 per share – diluted) in 2011.

Sales and other operating revenues in the fourth quarter 2012 were $56
billion, down from $58 billion in the year-ago period, mainly due to lower
crude oil volumes.


Earnings Summary
                                                    
                               Fourth Quarter         Year
Millions of dollars           2012       2011       2012        2011
Earnings by Business Segment                                     
Upstream                       $ 6,858     $ 5,737     $ 23,788     $ 24,786
Downstream                       925         (61   )     4,299        3,591
All Other                      (538  )   (553  )   (1,908 )   (1,482 )
Total ^(1)(2)                 $ 7,245   $ 5,123   $ 26,179   $ 26,895 
                              $ (131  )   $ (83   )   $ (454   )   $ 121
^(1) Includes foreign currency effects
^(2) Net income attributable to Chevron Corporation (See Attachment 1)


“Chevron delivered another very strong year in 2012,” said Chairman and CEO
John Watson. “Our upstream portfolio continues to produce excellent results.
We’ve now led the industry in earnings per barrel for over three years. Our
downstream businesses also delivered highly competitive earnings per barrel.”

“Strong cash flows allowed us to invest aggressively in our major capital
projects and to acquire several important, new resource opportunities. We also
raised the dividend on our common shares for the 25^th consecutive year and
continued our share repurchase program, both of which demonstrate our
commitment to providing near-term, top-tier returns to our shareholders.”

Watson continued, “We made significant progress on our Gorgon and Wheatstone
LNG projects in Australia in the past year. At the same time, we announced six
additional natural gas discoveries offshore Australia, and completed an asset
exchange that increased our interests in Carnarvon Basin fields. These results
support future expansion opportunities for these two projects.”

“We also expanded our global exploration resource acreage in 2012,” Watson
noted, “including entries into five new countries, the addition of significant
new acreage in the United States, and the recently announced acquisition of a
50 percent operated interest in a western Canada LNG project.”

Watson commented that the company added approximately 1.07 billion barrels of
net oil-equivalent proved reserves in 2012. These additions, which are subject
to final reviews, equate to 112 percent of net oil-equivalent production for
the year. The largest additions were for the Gorgon Project, as a result of
development drilling and additional reservoir data. Also significant were
additions for fields in the United States, Asia and offshore eastern Canada.
The company will provide additional details relating to 2012 reserve additions
in its Annual Report on Form 10-K scheduled for filing with the SEC on
February 22.

“In the downstream business, we completed a multiyear plan to streamline the
asset portfolio. We continued to focus our investments toward higher growth
and higher margin products,” Watson added. In 2012, the company’s 50
percent-owned affiliate, Chevron Phillips Chemical Company LLC, announced the
beginning of commercial production at a petrochemical facility in Saudi
Arabia, and the initiation of front-end engineering and design for several
petrochemical projects on the U.S. Gulf Coast. Significant progress was also
made on the construction of new capacity to make premium base oil at the
company’s Pascagoula, Mississippi, refinery and additional capacity at the
company’s existing additives plant in Singapore.

The company purchased $1.25 billion of its common stock in fourth quarter 2012
under its share repurchase program. Repurchases for the full year totaled $5
billion. At year end, balances of cash, cash equivalents, time deposits and
marketable securities totaled $21.9 billion, an increase of $1.8 billion from
the end of 2011. Total debt at December 31, 2012 stood at $12.2 billion, an
increase of $2.0 billion from a year earlier.

                                   UPSTREAM

Worldwide net oil-equivalent production was 2.67 million barrels per day in
the fourth quarter 2012, up from 2.64 million barrels per day in the 2011
fourth quarter. Production increases from project ramp-ups in Nigeria, the
United States and Thailand, higher cost recovery volumes in Bangladesh and new
volumes from the recently-acquired Delaware Basin properties were partially
offset by normal field declines and the continued shut-in of the Frade Field
in Brazil.


U.S. Upstream
                     Fourth Quarter     Year
Millions of Dollars  2012     2011     2012     2011
Earnings             $ 1,363  $ 1,605  $ 5,332  $ 6,512
                                                

U.S. upstream earnings of $1.36 billion in the fourth quarter 2012 were down
$242 million from a year earlier. Lower crude oil and natural gas realizations
were partially offset by higher crude oil production.

The company’s average sales price per barrel of crude oil and natural gas
liquids was $91 in the fourth quarter 2012, down from $101 a year ago. The
average sales price of natural gas was $3.22 per thousand cubic feet, compared
with $3.62 in last year’s fourth quarter.

Net oil-equivalent production of 674,000 barrels per day in the fourth quarter
2012 increased 13,000 barrels per day, or 2 percent, from a year earlier. The
increase in production was primarily due to further ramp-up of projects in the
Gulf of Mexico and the recently-acquired Delaware Basin properties, partially
offset by an absence of volumes associated with Cook Inlet, Alaska, assets
sold in 2011. The net liquids component of oil-equivalent production increased
3 percent in the 2012 fourth quarter to 462,000 barrels per day, while net
natural gas production decreased 1 percent to 1.27 billion cubic feet per day.


International Upstream
                                Fourth Quarter         Year
Millions of Dollars             2012       2011       2012        2011
Earnings*                       $ 5,495   $ 4,132   $ 18,456   $ 18,274
*Includes foreign currency       $ (34   )  $ (3    )  $ (275   )  $ 211
effects
                                                                      

International upstream earnings of $5.5 billion increased $1.4 billion from
the fourth quarter 2011. The increase between quarters primarily reflected a
gain of approximately $1.4 billion on an asset exchange in Australia. Foreign
currency effects decreased earnings by $34 million, compared with a decrease
of $3 million a year earlier.

The average sales price for crude oil and natural gas liquids in the 2012
fourth quarter was $100 per barrel, compared with $101 a year earlier. The
average price of natural gas was $5.97 per thousand cubic feet, up from $5.55
in last year’s fourth quarter.

Net oil-equivalent production of 1.99 million barrels per day in the fourth
quarter 2012 increased 14,000 barrels per day from a year ago. Production
increases from project ramp-ups in Nigeria and Thailand and higher cost
recovery volumes in Bangladesh were partially offset by the continued shut-in
of the Frade Field in Brazil.  The net liquids component of oil-equivalent
production decreased 3 percent to 1.33 million barrels per day, while net
natural gas production increased 8 percent to 3.96 billion cubic feet per day.

                                  DOWNSTREAM


U.S. Downstream
                     Fourth Quarter    Year
Millions of Dollars  2012   2011      2012     2011
Earnings             $ 331  $ (204 )  $ 2,048  $ 1,506
                                               

U.S. downstream operations earned $331 million in the fourth quarter 2012,
compared with a loss of $204 million a year earlier. The increase was due to
improved margins on refined products and higher earnings from the 50
percent-owned Chevron Phillips Chemical Company LLC.

Refinery crude oil input of 702,000 barrels per day in fourth quarter 2012
decreased 61,000 barrels per day from the year-ago period, primarily due to an
early-August fire at the refinery in Richmond, California that shut down the
crude unit. Refined product sales of 1.15 million barrels per day were down
75,000 barrels per day from fourth quarter 2011, mainly reflecting lower
gasoline, gas oil and kerosene sales. Branded gasoline sales decreased 2
percent to 507,000 barrels per day.


International Downstream
                                    Fourth Quarter     Year
Millions of Dollars                 2012     2011     2012       2011
Earnings*                           $ 594   $ 143   $ 2,251   $ 2,085 
*Includes foreign currency effects   $ (97 )  $ (81 )  $ (173  )  $ (65   )
                                                                             

International downstream operations earned $594 million in the fourth quarter
2012, compared with $143 million a year earlier. Current quarter earnings
benefited from higher gains on asset sales, primarily reflecting the sale of
the company’s fuels marketing businesses in three countries in the Caribbean.
A favorable change in effects on derivative instruments and improved margins
on refined products also contributed to the higher earnings in the 2012
quarter.

Refinery crude oil input of 918,000 barrels per day increased 113,000 barrels
per day from fourth quarter 2011, primarily due to consolidation of the 64
percent-owned Star Petroleum Refining Company beginning June 2012. Total
refined product sales of 1.57 million barrels per day in the 2012 fourth
quarter were flat compared to a year earlier.

                                  ALL OTHER

                                                    
                                 Fourth Quarter       Year
Millions of Dollars             2012      2011      2012        2011
Net Charges*                    $ (538 )  $ (553 )  $ (1,908 )  $ (1,482 )
*Includes foreign currency       $ 0       $ 1        $ (6     )  $ (25    )
effects
                                                                    

All Other consists of mining operations, power generation businesses,
worldwide cash management and debt financing activities, corporate
administrative functions, insurance operations, real estate activities, energy
services, alternative fuels, and technology companies.

Net charges in the fourth quarter 2012 were $538 million, compared with $553
million in the year-ago period.

                     CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in 2012 were $34.2 billion, compared with
$29.1 billion in 2011. The amounts included approximately $2.1 billion in 2012
and $1.7 billion in 2011 for the company’s share of expenditures by
affiliates, which did not require cash outlays by the company. Expenditures
for upstream represented 89 percent of the companywide total in 2012.

                                    NOTICE

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 Web site at www.chevron.com
under the “Investors” section. Additional financial and operating information
will be contained in the Earnings Supplement that will be available under
“Events and Presentations” in the “Investors” section on the Web site.

Chevron will post selected first quarter 2013 interim performance data for the
company and industry on its Web site on Wednesday, April 10, 2013, at 2:00
p.m. PDT. Interested parties may view this interim data at www.chevron.com
under the “Investors” section.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE
OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
                                     1995

This press release 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 press
release. 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 under 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 press
release could also have material adverse effects on forward-looking
statements.

                                                                
CHEVRON CORPORATION - FINANCIAL REVIEW                            Attachment 1
(Millions of Dollars, Except Per-Share Amounts)
                                                                  
CONSOLIDATED                                    
STATEMENT OF INCOME
(unaudited)               Three Months                Year Ended
                          Ended December 31           December 31
REVENUES AND OTHER        2012          2011          2012           2011
INCOME
Sales and other         $ 56,254      $ 58,027      $ 230,590     $  244,371
operating revenues ^*
Income from equity        1,815         1,567         6,889          7,363
affiliates
Other income              2,483         391           4,430          1,972
Total Revenues and        60,552        59,985        241,909        253,706
Other Income
COSTS AND OTHER
DEDUCTIONS
Purchased crude oil       33,959        36,363        140,766        149,923
and products
Operating, selling,
general and               7,455         7,278         27,294         26,394
administrative
expenses
Exploration expenses      357           386           1,728          1,216
Depreciation,
depletion and             3,554         3,313         13,413         12,911
amortization
Taxes other than on       3,251         2,680         12,376         15,628
income  ^*
Interest and debt         -             -             -              -
expense
Total Costs and Other     48,576        50,020        195,577        206,072
Deductions
Income Before Income      11,976        9,965         46,332         47,634
Tax Expense
Income tax expense        4,679         4,813         19,996         20,626
Net Income                7,297         5,152         26,336         27,008
Less: Net income
attributable to           52            29            157            113
noncontrolling
interests
NET INCOME
ATTRIBUTABLE TO         $ 7,245       $ 5,123       $ 26,179      $  26,895
CHEVRON CORPORATION
                                                                     
PER-SHARE OF COMMON
STOCK
Net Income
Attributable to
Chevron Corporation
- Basic                 $ 3.73        $ 2.61        $ 13.42       $  13.54
- Diluted               $ 3.70        $ 2.58        $ 13.32       $  13.44
Dividends               $ 0.90        $ 0.81        $ 3.51        $  3.09
                                                                     
Weighted Average
Number of Shares
Outstanding (000's)
- Basic                   1,938,257     1,972,803     1,950,480      1,986,482
- Diluted                 1,952,298     1,987,146     1,964,755      2,000,785
                                                                     
* Includes excise,
value-added and         $ 2,131       $ 1,713       $ 8,010       $  8,085
similar taxes.
                                                                     

                                                                  
CHEVRON CORPORATION - FINANCIAL REVIEW                            Attachment 2
(Millions of Dollars)
(unaudited)
                                                           
EARNINGS BY MAJOR         Three Months             Year Ended
OPERATING AREA
                          Ended December 31        December 31
                          2012         2011        2012           2011
Upstream
United States           $ 1,363      $ 1,605     $ 5,332        $ 6,512
International             5,495       4,132      18,456        18,274   
Total Upstream            6,858       5,737      23,788        24,786   
Downstream
United States             331          (204  )     2,048          1,506
International             594         143        2,251         2,085    
Total Downstream          925         (61   )     4,299         3,591    
All Other ^(1)            (538   )     (553  )     (1,908  )      (1,482   )
Total ^(2)              $ 7,245     $ 5,123    $ 26,179      $ 26,895   
                                                                  
                                                                  
SELECTED BALANCE                                  Dec. 31,      Dec. 31,
SHEET ACCOUNT DATA                                 2012           2011
Cash and Cash                                    $ 20,939       $ 15,864
Equivalents
Time Deposits                                    $ 708          $ 3,958
Marketable Securities                            $ 266          $ 249
Total Assets                                     $ 232,982      $ 209,474
Total Debt                                       $ 12,192       $ 10,152
Total Chevron
Corporation                                      $ 136,524      $ 121,382
Stockholders' Equity
                                                                  
                                                                  
                          Three Months             Year Ended
                         Ended December 31        December 31
CAPITAL AND
EXPLORATORY               2012         2011        2012           2011
EXPENDITURES ^(3)
United States
Upstream                $ 3,488      $ 1,977     $ 8,531        $ 8,318
Downstream                792          567         1,913          1,461
Other                     262         120        602           575      
Total United States       4,542        2,664       11,046         10,354
                                                                  
International
Upstream                  6,494        5,110       21,913         17,554
Downstream                512          487         1,259          1,150
Other                     8           3          11            8        
Total International       7,014       5,600      23,183        18,712   
Worldwide               $ 11,556    $ 8,264    $ 34,229      $ 29,066   
                                                                  
(1) Includes mining
operations, power
generation
businesses, worldwide
cash management and
debt financing
activities, corporate
administrative
functions, insurance
operations, real
estate activities,
alternative fuels and
technology companies.
(2) Net Income
Attributable to
Chevron Corporation
(See Attachment 1)
(3) Includes interest
in affiliates:
United States           $ 126        $ 83        $ 308          $ 277
International             623         577        1,809         1,418    
Total                   $ 749       $ 660      $ 2,117       $ 1,695    
                                                                           

                                                                
CHEVRON CORPORATION - FINANCIAL REVIEW                            Attachment 3
                                                               
OPERATING STATISTICS ^(1)             Three Months        Year Ended
                                      Ended December 31   December 31
NET LIQUIDS PRODUCTION (MB/D): ^(2)   2012      2011      2012    2011
                                                                  
United States                         462       447       455     465
International                         1,333     1,369     1,309   1,384
Worldwide                             1,795     1,816     1,764   1,849
                                                                  
NET NATURAL GAS PRODUCTION
(MMCF/D): ^(3)
United States                         1,273     1,290     1,203   1,279
International                         3,963     3,658     3,871   3,662
Worldwide                             5,236     4,948     5,074   4,941
                                                                  
TOTAL NET OIL-EQUIVALENT PRODUCTION
(MB/D): ^(4)
United States                         674       661       655     678
International                         1,994     1,980     1,955   1,995
Worldwide                             2,668     2,641     2,610   2,673
                                                                  
SALES OF NATURAL GAS (MMCF/D):
United States                         5,509     6,041     5,470   5,836
International                         4,214     4,319     4,315   4,361
Worldwide                             9,723     10,360    9,785   10,197
                                                                  
SALES OF NATURAL GAS LIQUIDS
(MB/D):
United States                         167       165       157     161
International                         92        86        88      87
Worldwide                             259       251       245     248
                                                                  
SALES OF REFINED PRODUCTS (MB/D):
United States                         1,152     1,227     1,211   1,257
International ^(5)                    1,565     1,570     1,554   1,692
Worldwide                             2,717     2,797     2,765   2,949
                                                                  
REFINERY INPUT (MB/D):
United States                         702       763       833     854
International ^(6)                    918       805       869     933
Worldwide                             1,620     1,568     1,702   1,787
                                                                  
(1) Includes interest in
affiliates.
(2) Includes: Canada - Synthetic      43        39        43      40
Oil
Venezuela Affiliate -   22        37        17      32
Synthetic Oil
(3) Includes natural gas consumed
in operations (MMCF/D):
United States                         58        62        51      69
International                         524       548       523     513
(4) Oil-equivalent production is
the sum of net liquids production
and net gas production. The
oil-equivalent gas conversion ratio
is 6,000 cubic feet of natural gas
= 1 barrel of crude oil.
(5) Includes share of affiliate       522       575       522     556
sales (MB/D):
(6) As of June 2012, Star Petroleum
Refining Company crude-input
volumes are reported on a 100
percent consolidated basis. Prior
to June 2012, crude-input volumes
reflect a 64 percent equity
interest.
                                                                  

Contact:

Chevron Corporation
Morgan Crinklaw, +1 925-790-6908
 
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