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Press release from Business Wire

Chevron Highlights 2012 Performance and Future Growth at Annual Meeting of Stockholders

Wednesday, May 29, 2013

Chevron Highlights 2012 Performance and Future Growth at Annual Meeting of Stockholders

15:07 EDT Wednesday, May 29, 2013

SAN RAMON, Calif. (Business Wire) -- Chevron Corporation (NYSE: CVX) today reported the company's 2012 operational and social performance and future growth plans at its 2013 Annual Meeting of Stockholders.

“Chevron's 2012 results demonstrate that we have the people, portfolio and financial strength to deliver superior stockholder value,” said John Watson, chairman of the board and CEO. “Our planned growth will increase our capacity to deliver affordable energy, a cornerstone of economic prosperity.”

Watson discussed Chevron's strong 2012 financial and operational performance, with earnings exceeding $26 billion and return on capital employed (ROCE) approaching 19 percent. In 2012, the company marked its 25th consecutive year of annual dividend payment increases, which included last year's annual dividend increase of 13.6 percent. Chevron announced another quarterly dividend increase of 11.1 percent in April 2013. Watson also said that for the fourth consecutive year, Chevron led its peers in five-year total stockholder return.

Watson reiterated Chevron's long-standing dedication to safe, reliable operations, noting that Chevron was an industry leader in safety in 2012. He also reinforced the company's commitment to learn from operational incidents and take definitive corrective actions. Watson also discussed the partnerships Chevron has formed to address health, education and economic development in the communities where the company operates. Over the past seven years, Chevron has invested more than $1 billion in projects essential to sustainable communities, and last year the company purchased $60 billion in goods and services around the globe, providing meaningful stimulus for local economies.

George Kirkland, Chevron vice chairman and executive vice president for Upstream and Gas, discussed Chevron's strong queue of projects to meet the world's future energy needs. Chevron plans to invest $36.7 billion in 2013, with 90 percent of that amount expected to fund upstream activities. The company has invested nearly $111 billion over the past five years to develop crude oil and natural gas resources around the world.

Kirkland noted that Chevron Upstream had industry-leading performance in both safety and financial performance in 2012. Earnings per barrel have averaged almost seven dollars per barrel higher than the average of the company's peer group over the past three years. Cash margins also have been the highest of its peers for three years and ROCE for the last two years. Chevron is on track to deliver on its commitment to produce 3.3 million barrels of oil-equivalent per day by 2017, more than 98 percent of which will come from fields that are online today or from projects under construction or in detailed design. Over the next five years, 50 projects with a Chevron investment of more than $250 million each are scheduled to start production, 16 of which have a net Chevron investment exceeding $1 billion. Construction on the Gorgon liquefied natural gas (LNG) project in Western Australia is over 60 percent complete, with startup expected in late 2014. Start up of the Wheatstone LNG project, also in Western Australia, is planned for 2016.

Kirkland also discussed Chevron's Downstream and Chemicals business, which performed very well in 2012, marked by an improvement in ROCE of more than 10 percentage points since 2009. Chevron Downstream and Chemicals growth projects focus on lubricants and chemicals, including the Pascagoula, Miss., base oil plant, which is scheduled to start up later this year and is expected to position Chevron as the world's largest manufacturer of premium base oil. Chevron Oronite's Singapore manufacturing plant, already the largest in the Asia-Pacific, is expanding further, with additional capacity scheduled to come online in phases in 2014 and 2016.

Stockholders voted on 13 items and supported the board's recommendation on each. As of May 29, 2013, the preliminary report of the Inspector of Election was as follows:

  • Item 1: An average of 97 percent of the votes cast were voted for each of the 11 nominees for election to the board of directors.
  • Item 2: Approximately 99 percent of the votes cast were voted to ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the company.
  • Item 3: Approximately 94 percent of the votes cast were voted to approve, on an advisory basis, the compensation for the company's named executive officers.
  • Item 4: Approximately 91 percent of the votes cast were voted to approve amendments to the company's Long-Term Incentive Plan.
  • Item 5: Approximately 69 percent of the votes cast were voted against the stockholder proposal regarding shale energy operations.
  • Item 6: Approximately 92 percent of the votes cast were voted against the stockholder proposal regarding offshore oil wells.
  • Item 7: Approximately 92 percent of the votes cast were voted against the stockholder proposal regarding climate risk.
  • Item 8: Approximately 75 percent of the votes cast were voted against the stockholder proposal regarding lobbying disclosure.
  • Item 9: Approximately 96 percent of the votes cast were voted against the stockholder proposal regarding the use of corporate funds for political purposes.
  • Item 10: Approximately 73 percent of the votes cast were voted against the stockholder proposal regarding cumulative voting.
  • Item 11: Approximately 67 percent of the votes cast were voted against the stockholder proposal regarding special meetings.
  • Item 12: Approximately 78 percent of the votes cast were voted against the stockholder proposal regarding an independent director with environmental expertise.
  • Item 13: Approximately 78 percent of the votes cast were voted against the stockholder proposal regarding country selection guidelines.

Final voting results will be reported on Form 8-K, which will be filed with the Securities and Exchange Commission and available at www.chevron.com. Specific information about the proposals before Chevron stockholders this year may be found in the Investor Relations section of the company's website under Stockholder Services – “Annual Meeting Materials.”

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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”, “on track” 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.

Chevron Corporation
Morgan Crinklaw, 925-790-6908

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