© 2018 Chevron Corporation
Corporate overviewMike Wirth
Chairman and Chief Executive Officer
2© 2018 Chevron Corporation
Operational excellence leadership
Industry leading
safety and spill
performance
Reduced
energy consumption
while increasing
production
See Appendix: slide notes for definitions, source information, calculations, and other.
Loss of containment eventsBasis: 2014 = 100
Days away from work rate
CVX ranking relative to competitors,
1 being the lowest rate
Competitors: BP, RDS, XOM
1 1 1
0.05
0.10
2014 2015 2016 2017
20
40
60
80
100
2014 2015 2016 2017
Tier 1 Tier 2
Oil spills to land or waterThousands of barrels
650
700
750
2014 2015 2016 2017estimate
1 1 1
10
20
30
40
2014 2015 2016 2017
Total energy consumptionOperated assets (trillion BTUs)
CVX ranking relative to competitors,
1 being the lowest rate
Competitors: BP, RDS, TOT, XOM
3© 2018 Chevron Corporation
Macro landscape – growing demand
The world needs more energy
to enable economic development
Demand for our products
is growing and will continue to do so
Oil markets face a longer,
flatter supply curve
Source: IEA, World Energy Outlook 2017
See Appendix: slide notes for definitions, source information, calculations, and other.
Global energy demandMillion barrels of oil equivalent per day
Global crude oil supply & demandMillion barrels per day
100
200
300
400
2016 2040IEA New Policies Scenario
25
50
75
100
2020 2030 2040
Supply
gap of
42 MMBD
Capital assisted decline of existing production
Crude oil and
petroleum productsNatural gas
Other: nuclear, hydro,
biomass, and renewablesCoal
IEA New Policies Scenario demand
Supply
4© 2018 Chevron Corporation
Winning in any environment
Advantaged
portfolio
Sustainable
at lower prices
Strong
balance sheet
Superior total
shareholder return
Free cash flow
growth
#1 priority:
maintain and
grow dividend
What we have What we will do What investors get
Lower our cost structure
Grow
production
and cash
margins
Be
returns-driven
in capital
allocation
High-grade
portfolio
Get more
out of assets
5© 2018 Chevron Corporation
Profitable downstream & chemicals portfolio
TCO
Fuels value chains Petrochemicals Additives
Focused
portfolio
Premium base oil
Advantaged
feed, scale and
technology
Complex
refineries with
scale
Integrated
value chains
Strong brands
and leading
market positions
Technology
enabled
formulations
6© 2018 Chevron Corporation
Advantaged upstream portfolio
Opportunities
to high-grade
Lower risk
High margin /
oil-linked
Production operations
Permian
TCO
Gorgon
Wheatstone
San Joaquin Valley
Deepwater
Gulf of
Mexico
Nigeria
Diverse
Sustainable
and long-lived
Low cost
Key assets
High margin /
oil-linked
7© 2018 Chevron Corporation
Resource to production ratioYears
Reserves to production ratioYears
10
20
30
40
Sustainable portfolio
Prudent and stable
reserves to production
Long-lived
resource base
7
Competitors: BP, RDS, TOT, XOM
9
12
15
18
2012 2013 2014 2015 2016 2017
Competitors: BP, RDS, TOT, XOM
See Appendix: slide notes for definitions, source information, calculations, and other. Source: Wood Mackenzie; public information and Chevron estimates
8© 2018 Chevron Corporation
Strong balance sheet
Debt ratioPercent
See Appendix: slide notes for definitions, source information, calculations, and other.
Other companies included: APC, COP, DVN, EOG, ENI, HES, MRO, OXY, STO, SU
Credit rating
BP
RDS
TOT
BBB A AA
XOM
15
20
25
30
35
40
45
50
55
60
9© 2018 Chevron Corporation
Disciplined C&E program
FGP / WPMP
Base
MCPs under
construction
Downstream
Exploration /
other
2018 capital & exploratory budget$ billions
~75% of spend
delivers cash
flow within
2 years
$18.3
Shale & tight
5
10
15
20
25
30
35
40
45
2014 2015 2016 2017 2018budget
2019−2020guidance
$18.3$18–20
Cash
C&E
$12.8
$18.8
Total capital & exploratory$ billions
See Appendix: slide notes for definitions, source information, calculations, and other.
10© 2018 Chevron Corporation
Production costs$/BOE
8
10
12
14
16
18
2014 2015 2016 2017 2020
Cost reductions continue
Corporate cost reduction
from 2014Percent
Cost reductions
continue
Technology enables
increased efficiencies
-24
-18
-12
Competitors: BP, RDS, TOT, XOM
See Appendix: slide notes for definitions, source information, calculations, and other.
11© 2018 Chevron Corporation
Liquid % of total productionPercent
Projected operating
cash margin$/BOE
Upstream cash margin grows
Increase high margin,
oil-linked volume
Divest lower margin
barrels
Improve cost structure$60/bbl
$60/bbl
$60/bbl
$70/bbl
16
20
24
28
2016 2017 2020
Source: Wood Mackenzie and CVX internal estimates
CVX Competitors:
BP, RDS, TOT, XOM
35
45
55
65
75
85
2016 2017 2018 2019 2020 2021 2022 2023
~75%CVX oil-linked production
See Appendix: slide notes for definitions, source information, calculations, and other.
12© 2018 Chevron Corporation
Production growth at low C&E
Projected net production at $60/bblMMBOED
Base plus
shale & tight
2–3% CAGR through 2022
with ~$9–10B capital spend/yr
2.592.73
2016 2017 2018 2020
4-7%growth
2019
5%growth
Uncertainties
• Price effects
• Status of PZ
• Ramp-up pace of MCPs
• Asset sales
See Appendix: slide notes for definitions, source information, calculations, and other.
13© 2018 Chevron Corporation
Upstream assets
Continuous portfolio reviewA
sset
Matu
rity
Australia
Deepwater
Gulf of
Mexico
Permian
Kazakhstan
CoreNon-core
Imm
atu
reM
atu
re
San Joaquin
Valley
InvestmentsHigh margin, high return
Scale, efficiency
DivestmentsNon-strategic fit
Can’t compete for capital
Receive good value
2018–2020
asset sale proceeds
target ~$5–10B
Source: Wood Mackenzie
See Appendix: slide notes for definitions, source information, calculations, and other.
Nigeria
14© 2018 Chevron Corporation
Free cash flow growthCAGR % 2017–2020
CFFO ROCE at $60/bbl2017–2020
Percent
0
10
20
30
40
Improving cash returns
Expanding cash margins
Lower cost structure
Portfolio optimization
See Appendix: slide notes for definitions, source information, calculations, and other.
Competitors: BP, RDS, TOT, XOMChevron
Source: Third-party analyst reports
10
12
14
16
2017CFFOROCE
2020CFFOROCE
Price
upside
Cost &
other
Margin &
volume
Portfolio
enhancement
2017 CFFO ROCE
2020 CFFO ROCE
$60/bbl
$60/bbl
15© 2018 Chevron Corporation
2018 cash generation
2018 cash flow$ billions
Cash generation
of ~$14B
2018 cash flow
breakeven @ $50/bbl
without asset sales
0
2
4
6
8
10
12
14
16
18
2017 CF after capex excl.
asset sales @ $54/bbl
2018 CF after capex and incl.
asset sales@ $60/bbl
CF sensitivity from
$54 to $60/bbl
2018 asset sales
Dividend
2018 operating activity
@ $60/bbl
Dividend
See Appendix: reconciliation of non-GAAP measures and slide notes for definitions,
source information, calculations, and other.
16© 2018 Chevron Corporation
Indexed dividend growthBasis 2007 = 100
Shareholder distributions
A leader in
dividend growth
~9% reduction in
shares outstanding
since 2007
50
100
150
200
2007 2017
Chevron S&P 500 Competitor average: BP, RDS, TOT, XOM
~7%
CVX compound annualgrowth rate
Percent change in shares outstanding2007–2017
-30
-20
-10
0
10
20
Competitors: BP, RDS excl. shares issued for the BG acquisition, TOT, XOMChevron
See Appendix: slide notes for definitions, source information, calculations, and other.
17© 2018 Chevron Corporation
Consistent financial priorities2018–2020 guidance
Maintain and grow dividend Competitive dividend growth
Fund capital program Annual C&E range $18–20B
Strong balance sheet Debt ratio ~20%
Return surplus cash Resume buy back
See Appendix: slide notes for definitions, source information, calculations, and other.