Chevron Reports Third Quarter Net Income of $5.0 Billion

  Chevron Reports Third Quarter Net Income of $5.0 Billion

Business Wire

SAN RAMON, Calif. -- November 1, 2013

Chevron Corporation (NYSE: CVX) today reported earnings of $5.0 billion ($2.57
per share – diluted) for the third quarter 2013, compared with $5.3 billion
($2.69 per share – diluted) in the 2012 third quarter.

Sales and other operating revenues in the third quarter 2013 were $57 billion,
compared to $56 billion in the year-ago period.


Earnings Summary
                                                
                         Three Months                Nine Months
                         Ended Sept. 30            Ended Sept. 30
Millions of dollars    2013        2012        2013         2012
Earnings by Business                                           
Segment
Upstream                 $ 5,092       $ 5,139       $ 15,957       $ 16,930
Downstream                 380           689           1,847          3,374
All Other               (522  )    (575  )    (1,311 )    (1,370 )
Total ^(1)(2)          $ 4,950    $ 5,253    $ 16,493    $ 18,934 
^(1) Includes
foreign currency         $ (276  )     $ (293  )     $ 272          $ (323   )
effects
^(2) Net income
attributable to
Chevron Corporation
(See Attachment 1)
                         

“Our third quarter earnings were down from a year ago,” said Chairman and CEO
John Watson, “primarily reflecting lower margins for refined products in the
current period.”

“We continue to make good progress on our major capital projects,” Watson
added. “Construction continues, and important milestones are being reached, on
our Gorgon and Wheatstone LNG projects in Australia. Important interim
construction goals have been recently reached for our Jack/St. Malo and Big
Foot deepwater projects in the Gulf of Mexico, in preparation for their
project start-ups scheduled for late 2014. We are also moving forward on the
development of our liquids-rich unconventional properties in the United
States.”

Recent upstream highlights include:

  *Australia – Signed binding long-term Sales and Purchase Agreements with
    Tohoku Electric Power Company, Inc. for Wheatstone LNG. Binding long-term
    agreements now cover 85 percent of Chevron’s equity LNG offtake from
    Wheatstone.
  *Australia – Acquired exploration interests in two blocks located in the
    deepwater Bight Basin offshore South Australia.
  *Canada – Successfully concluded the initial twelve-well exploration
    drilling program in the liquids-rich portion of the Duvernay Shale.

“In the downstream business, we continued to advance our growth investments,”
said Watson. Chevron Phillips Chemical Company LLC, the company’s 50
percent-owned affiliate, announced a final investment decision on its U.S.
Gulf Coast Petrochemicals Project. This project will include an ethane cracker
with an annual design capacity of 1.5 million metric tons per year and two
polyethylene facilities, each with an annual design capacity of 500,000 metric
tons per year.

The company purchased $1.25 billion of its common stock in the third quarter
2013 under its share repurchase program.

                                   UPSTREAM

Worldwide net oil-equivalent production was 2.59 million barrels per day in
the third quarter 2013, up from 2.52 million barrels per day in the 2012 third
quarter. The increase was primarily driven by lower maintenance-related
downtime at Tengizchevroil and project ramp-ups in the United States, Nigeria
and Angola, partially offset by normal field declines.

U.S. Upstream                              
                        Three Months            Nine Months
                        Ended Sept. 30        Ended Sept. 30
Millions of Dollars   2013      2012      2013      2012
Earnings              $ 1,026   $ 1,122   $ 3,241   $ 3,969
                                                       

U.S. upstream earnings of $1.03 billion in the third quarter 2013 were down
$96 million from a year earlier, as higher crude oil and natural gas
realizations and increased production were more than offset by higher
depreciation, exploration and operating expenses.

The company’s average sales price per barrel of crude oil and natural gas
liquids was $97 in the third quarter 2013, up from $91 a year ago. The average
sales price of natural gas was $3.23 per thousand cubic feet, compared with
$2.63 in last year’s third quarter.

Net oil-equivalent production of 655,000 barrels per day in the third quarter
2013 was up 18,000 barrels per day, or 3 percent, from a year earlier.
Production increases in the Delaware Basin in New Mexico and the Marcellus
Shale in western Pennsylvania, along with the absence of weather-related
downtime in the Gulf of Mexico, were partially offset by normal field declines
elsewhere.  The net liquids component of oil-equivalent production increased 2
percent in the 2013 third quarter to 448,000 barrels per day, while net
natural gas production increased 5 percent to 1.24 billion cubic feet per day.

International Upstream                            
                           Three Months                Nine Months
                           Ended Sept. 30            Ended Sept. 30
Millions of Dollars      2013        2012        2013       2012
Earnings*                $ 4,066    $ 4,017    $ 12,716   $ 12,961 
*Includes foreign          $ (188  )   $ (252  )     $ 259      $ (241   )
currency effects
                                                                             

International upstream earnings of $4.07 billion increased $49 million from
the third quarter 2012. The increase between quarters was primarily due to
higher volumes and realizations for crude oil, largely offset by the absence
of a 2012 gain of approximately $600 million from the sale of an equity
interest in the Wheatstone Project, and higher operating expenses in the
current period. Foreign currency effects decreased earnings by $188 million in
the 2013 quarter, compared with a decrease of $252 million a year earlier.

The average sales price for crude oil and natural gas liquids in the third
quarter 2013 was $104 per barrel, up from $98 a year earlier. The average
price of natural gas was $5.88 per thousand cubic feet, compared with $6.03 in
last year’s third quarter.

Net oil-equivalent production of 1.93 million barrels per day in the third
quarter 2013 was up 51,000 barrels per day, or 3 percent, from a year ago.
Production increased primarily due to lower maintenance-related downtime at
Tengizchevroil and project ramp-ups in Nigeria and Angola, partially offset by
normal field declines. The net liquids component of oil-equivalent production
increased 2 percent to 1.28 million barrels per day, while net natural gas
production increased 3 percent to 3.91 billion cubic feet per day.

                                  DOWNSTREAM

U.S. Downstream                        
                        Three Months        Nine Months
                        Ended Sept. 30    Ended Sept. 30
Millions of Dollars   2013    2012    2013    2012
Earnings              $ 249   $ 456   $ 522   $ 1,717
                                                 

U.S. downstream operations earned $249 million in the third quarter 2013
compared with earnings of $456 million a year earlier. The decrease was mainly
due to lower margins on refined product sales and higher operating expenses
reflecting repair and maintenance activities at company refineries. The
decrease was partially offset by higher earnings from the 50 percent-owned
Chevron Phillips Chemical Company LLC.

Refinery crude oil input of 831,000 barrels per day in the third quarter 2013
increased 52,000 barrels per day from the year-ago period. The increase was
primarily due to the absence of effects of an August 2012 incident at the
refinery in Richmond, California that shut down the crude unit, partially
offset by planned maintenance activities at the refinery in El Segundo,
California in the current period. Refined product sales of 1.19 million
barrels per day were up 12,000 barrels per day from the third quarter 2012,
mainly reflecting higher gasoline sales. Branded gasoline sales increased 2
percent to 529,000 barrels per day.

International Downstream                            
                                 Three Months            Nine Months
                                 Ended Sept. 30        Ended Sept. 30
Millions of Dollars            2013      2012      2013      2012
Earnings*                      $ 131    $ 233    $ 1,325   $ 1,657 
*Includes foreign currency       $ (86 )   $ (43 )     $ 20      $ (76   )
effects
                                                                             

International downstream operations earned $131 million in the third quarter
2013 compared with $233 million a year earlier. Current quarter earnings
decreased due to lower margins on refined product sales, partially offset by a
favorable change in effects on derivative instruments. Foreign currency
effects decreased earnings by $86 million in the 2013 quarter, compared with a
decrease of $43 million a year earlier.

Refinery crude oil input of 885,000 barrels per day in the third quarter 2013
decreased 24,000 barrels per day from the year-ago period. Total refined
product sales of 1.56 million barrels per day in the 2013 third quarter were
essentially flat with the year-ago period.

                                  ALL OTHER

                         Three Months            Nine Months
                           Ended Sept. 30          Ended Sept. 30
Millions of Dollars      2013       2012       2013         2012
Net Charges*             $ (522 )   $ (575 )   $ (1,311 )   $ (1,370 )
*Includes foreign          $ (2   )   $ 2          $ (7     )   $ (6     )
currency 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 third quarter 2013 were $522 million, compared with $575
million in the year-ago period. The change between periods was mainly due to
lower employee compensation and benefits expenses and other corporate charges,
partially offset by an impairment of a power-related equity affiliate.

                     CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first nine months of 2013 were
$28.9 billion, compared with $22.7 billion in the corresponding 2012 period.
The amounts included $1.8 billion in 2013 and $1.4 billion in 2012 for the
company’s share of expenditures by affiliates, which did not require cash
outlays by the company. Capital expenditures increased between periods as work
progressed on a number of major capital projects, particularly two Australian
LNG projects and two deepwater Gulf of Mexico projects. In addition, the
company acquired new resource opportunities in Australia, the Permian Basin
and the Kurdistan Region of Iraq, along with interests in the Kitimat LNG
Project in Canada. Expenditures for upstream represented 92 percent of the
companywide total in the first nine months of 2013.

                                    NOTICE

Chevron’s discussion of third quarter 2013 earnings with security analysts
will take place on Friday, November 1, 2013, at 8:00 a.m. PDT. 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 fourth quarter 2013 interim performance data for
the company and industry on its Web site on Thursday, January 9, 2014, at 2:00
p.m. PST. 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 chemicals
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 28 through
30 of the company’s 2012 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.


Attachment 1
CHEVRON CORPORATION - FINANCIAL REVIEW
(Millions of Dollars, Except Per-Share Amounts)
                                                          
CONSOLIDATED
STATEMENT OF
INCOME
(unaudited)          Three Months                    Nine Months
                     Ended September 30              Ended September 30
REVENUES AND         2013            2012            2013            2012
OTHER INCOME
Sales and
other              $ 56,603        $ 55,660        $ 166,206       $ 174,336
operating
revenues ^*
Income from
equity               1,635           1,274           5,703           5,074
affiliates
Other income         265             1,110           781             1,947
Total Revenues
and Other            58,503          58,044          172,690         181,357
Income
COSTS AND
OTHER
DEDUCTIONS
Purchased
crude oil and        34,822          33,982          102,005         106,807
products
Operating,
selling,
general and          7,263           7,046           21,440          19,839
administrative
expenses
Exploration          559             475             1,135           1,371
expenses
Depreciation,
depletion and        3,658           3,370           10,551          9,859
amortization
Taxes other
than on income       3,366           3,239           9,852           9,125
^*
Interest and         -               -               -               -
debt expense
Total Costs
and Other            49,668          48,112          144,983         147,001
Deductions
Income Before
Income Tax           8,835           9,932           27,707          34,356
Expense
Income tax           3,839           4,624           11,068          15,317
expense
Net Income           4,996           5,308           16,639          19,039
Less: Net
income
attributable         46              55              146             105
to
noncontrolling
interests
NET INCOME
ATTRIBUTABLE
TO
CHEVRON            $ 4,950         $ 5,253         $ 16,493        $ 18,934
CORPORATION
                                                                     
PER-SHARE OF
COMMON STOCK
Net Income
Attributable
to Chevron
Corporation
- Basic            $ 2.58          $ 2.71          $ 8.58          $ 9.69
- Diluted          $ 2.57          $ 2.69          $ 8.52          $ 9.62
Dividends          $ 1.00          $ 0.90          $ 2.90          $ 2.61
                                                                     
Weighted
Average Number
of Shares
Outstanding
(000's)
- Basic              1,914,047       1,945,840       1,921,429       1,954,584
- Diluted            1,929,831       1,960,141       1,936,797       1,968,939
                                                                     
* Includes
excise,
value-added        $ 2,223         $ 2,163         $ 6,364         $ 5,879
and similar
taxes.
                                                                     


Attachment 2
CHEVRON CORPORATION - FINANCIAL REVIEW
(Millions of Dollars)
(unaudited)
                                                           
EARNINGS BY
MAJOR OPERATING       Three Months                     Nine Months
AREA
                      Ended September 30         Ended September 30
                      2013       2012        2013            2012
Upstream
United States       $ 1,026         $ 1,122         $  3,241        $  3,969
International         4,066           4,017            12,716          12,961
Total Upstream        5,092           5,139           15,957          16,930
Downstream
United States         249             456              522             1,717
International         131             233              1,325           1,657
Total                 380             689              1,847           3,374
Downstream
All Other ^(1)        (522)           (575)            (1,311)         (1,370)
Total ^(2)          $ 4,950         $ 5,253         $  16,493       $  18,934
                                                                       
                                                                       
SELECTED                                            Sept. 30,       Dec. 31,
BALANCE SHEET                                       2013            2012
ACCOUNT DATA
Cash and Cash                                       $  17,014       $  20,939
Equivalents
Time Deposits                                       $  1,308        $  708
Marketable                                          $  258          $  266
Securities
Total Assets                                        $  247,838      $  232,982
Total Debt                                          $  18,581       $  12,192
Total Chevron
Corporation                                         $  144,779      $  136,524
Stockholders'
Equity
                                                                       
                                                                       
                      Three Months                     Nine Months
                      Ended September 30               Ended September 30
CAPITAL AND
EXPLORATORY           2013            2012             2013            2012
EXPENDITURES 
^(3)
United States
Upstream            $ 2,067         $ 1,696         $  5,913        $  5,043
Downstream            517             442              1,287           1,121
Other                 159             188              446             340
Total United          2,743           2,326            7,646           6,504
States
                                                                       
International
Upstream              7,605           5,841            20,566          15,419
Downstream            230             262              690             747
Other                 7               1                17              3
Total                 7,842           6,104            21,273          16,169
International
Worldwide           $ 10,585        $ 8,430         $  28,919       $  22,673
                                                                       
(1) Includes
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.
(2) Net Income
Attributable to
Chevron
Corporation
(See Attachment
1)
(3) Includes
interest in
affiliates:
United States       $ 219           $ 84            $  450          $  182
International         465             457              1,304           1,186
Total               $ 684           $ 541           $  1,754        $  1,368
                                                                       


Attachment 3
CHEVRON CORPORATION - FINANCIAL REVIEW
                                                                
                                     Three Months           Nine Months
OPERATING STATISTICS  ^(1)           Ended September 30     Ended September 30
NET LIQUIDS PRODUCTION (MB/D):       2013       2012      2013       2012
^(2)
                                                                         
United States                        448          440       452          452
International                        1,279        1,249     1,281        1,302
Worldwide                            1,727        1,689     1,733        1,754
                                                                         
NET NATURAL GAS PRODUCTION
(MMCF/D): ^(3)
United States                        1,242        1,184     1,241        1,180
International                        3,910        3,778     3,983        3,840
Worldwide                            5,152        4,962     5,224        5,020
                                                                         
TOTAL NET OIL-EQUIVALENT
PRODUCTION (MB/D): ^(4)
United States                        655          637       659          649
International                        1,930        1,879     1,945        1,941
Worldwide                            2,585        2,516     2,604        2,590
                                                                         
SALES OF NATURAL GAS (MMCF/D):
United States                        5,643        5,447     5,795        5,457
International                        4,072        4,008     4,279        4,349
Worldwide                            9,715        9,455     10,074       9,806
                                                                         
SALES OF NATURAL GAS LIQUIDS
(MB/D):
United States                        133          152       137          154
International                        90           92        89           87
Worldwide                            223          244       226          241
                                                                         
SALES OF REFINED PRODUCTS
(MB/D):
United States                        1,195        1,183     1,169        1,231
International ^(5)                   1,561        1,561     1,520        1,550
Worldwide                            2,756        2,744     2,689        2,781
                                                                         
REFINERY INPUT (MB/D):
United States                        831          779       742          877
International ^(6)                   885          909       858          853
Worldwide                            1,716        1,688     1,600        1,730
                                                                         
(1) Includes interest in
affiliates.
(2) Includes: Canada - Synthetic     43           45        42           42
Oil
Venezuela Affiliate - Synthetic      30           1         23           14
Oil
(3) Includes natural gas
consumed in operations (MMCF/D):
United States ^(7)                   70           54        74           64
International                        518          504       519          523
(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      474          491       472          522
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.
(7) 2012 conforms to 2013
presentation.
                                                                         

Contact:

Chevron Corporation
Justin Higgs, 925-842-6175
 
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