Corporate overview Mike Wirth Chairman and Chief Executive Officer
Operational excellence leadership Days away from work rate 0. 0.05 Loss of containment events Basis: 2014 = 0 0 80 60 40 20 1 1 1 2014 2015 2016 2017 CVX ranking relative to competitors, 1 being the lowest rate Competitors: BP, RDS, XOM 2014 2015 2016 2017 Tier 1 Tier 2 Industry leading safety and spill performance Reduced energy consumption while increasing production Oil spills to land or water Thousands of barrels 40 30 20 750 700 650 1 1 1 2014 2015 2016 2017 CVX ranking relative to competitors, 1 being the lowest rate Competitors: BP, RDS, TOT, XOM Total energy consumption Operated assets (trillion BTUs) 2014 2015 2016 2017 estimate 2
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 Global energy demand Million barrels of oil equivalent per day 400 300 200 0 Crude oil and petroleum products Global crude oil supply & demand Million barrels per day 0 75 50 25 2016 2040 IEA New Policies Scenario Natural gas Coal Capital assisted decline of existing production Other: nuclear, hydro, biomass, and renewables IEA New Policies Scenario demand Supply Supply gap of 42 MMBD 2020 2030 2040 Source: IEA, World Energy Outlook 2017 3
Winning in any environment What we have What we will do What investors get Advantaged portfolio Sustainable at lower prices Grow production and cash margins Be returns-driven in capital allocation Lower our cost structure Superior total shareholder return Free cash flow growth Strong balance sheet Get more out of assets High-grade portfolio #1 priority: maintain and grow dividend 4
Profitable downstream & chemicals portfolio Focused portfolio Technology enabled formulations TCO Integrated value chains Advantaged feed, scale and technology Strong brands and leading market positions Complex refineries with scale Fuels value chains Petrochemicals Premium base oil Additives 5
Advantaged upstream portfolio Diverse Opportunities to high-grade TCO Sustainable and long-lived San Joaquin Valley Permian Deepwater Gulf of Mexico Lower risk Nigeria Gorgon Wheatstone Low cost Production operations Key assets High margin / oil-linked 6
Sustainable portfolio Reserves to production ratio Years 18 Resource to production ratio Years 15 Prudent and stable reserves to production 40 30 12 Long-lived resource base 20 9 2012 2013 2014 2015 2016 2017 Competitors: BP, RDS, TOT, XOM Competitors: BP, RDS, TOT, XOM Source: Wood Mackenzie; public information and Chevron estimates 7
Strong balance sheet Debt ratio Percent 60 55 50 45 40 35 30 25 BP TOT RDS 20 15 Other companies included: APC, COP, DVN, EOG, ENI, HES, MRO, OXY, STO, SU BBB A AA Credit rating XOM 8
Disciplined C&E program Total capital & exploratory $ billions 45 40 2018 capital & exploratory budget $ billions $18.3 35 30 25 20 15 5 $18.8 $18.3 Cash C&E $12.8 $18 20 ~75% of spend delivers cash flow within 2 years 2014 2015 2016 2017 2018 budget 2019 2020 guidance Downstream MCPs under construction Base FGP / WPMP Shale & tight Exploration / other 9
Cost reductions continue Production costs $/BOE 18 Corporate cost reduction from 2014 Percent -12 16 14 Cost reductions continue 12 Technology enables increased efficiencies -18 8 2014 2015 2016 2017 2020-24 Competitors: BP, RDS, TOT, XOM
Upstream cash margin grows Projected operating cash margin $/BOE Liquid % of total production Percent 28 $70/bbl Increase high margin, oil-linked volume 85 75 ~75% CVX oil-linked production 24 20 $60/bbl $60/bbl $60/bbl Divest lower margin barrels Improve cost structure 65 55 45 16 2016 2017 2020 35 2016 2017 2018 2019 2020 2021 2022 2023 CVX Source: Wood Mackenzie and CVX internal estimates Competitors: BP, RDS, TOT, XOM 11
Production growth at low C&E Projected net production at $60/bbl MMBOED Base plus shale & tight 5% growth 4-7% growth 2 3% CAGR through 2022 with ~$9 B capital spend/yr 2.73 2.59 2016 2017 2018 2019 2020 Uncertainties Price effects Status of PZ Ramp-up pace of MCPs Asset sales 12
Asset Maturity Continuous portfolio review Upstream assets San Joaquin Valley Investments High margin, high return Scale, efficiency Nigeria Kazakhstan Divestments Non-strategic fit Can t compete for capital Receive good value Permian Immature Mature Deepwater Gulf of Mexico Non-core Core Australia 2018 2020 asset sale proceeds target ~$5 B Source: Wood Mackenzie 13
Improving cash returns CFFO ROCE at $60/bbl 2017 2020 Free cash flow growth CAGR % 2017 2020 Percent 16 14 Margin & volume Cost & other Portfolio enhancement Price upside Expanding cash margins Lower cost structure 40 30 20 12 $60/bbl $60/bbl Portfolio optimization 2017 2017 CFFO CFFO ROCE ROCE 2020 2020 CFFO CFFO ROCE ROCE 0 Chevron Competitors: BP, RDS, TOT, XOM Source: Third-party analyst reports 14
2018 cash generation 2018 cash flow $ billions 18 16 14 12 Cash generation of ~$14B 8 6 4 Dividend Dividend 2018 cash flow breakeven @ $50/bbl without asset sales 2 0 2017 CF after capex excl. asset sales @ $54/bbl CF sensitivity from $54 to $60/bbl 2018 operating activity @ $60/bbl 2018 asset sales 2018 CF after capex and incl. asset sales @ $60/bbl See Appendix: reconciliation of non-gaap measures and slide notes for definitions, source information, calculations, and other. 15
Shareholder distributions Indexed dividend growth Basis 2007 = 0 200 150 0 50 ~7 % CVX compound annual growth rate 2007 2017 Chevron S&P 500 Competitor average: BP, RDS, TOT, XOM Percent change in shares outstanding 2007 2017 20 0 - -20-30 Chevron Competitors: BP, RDS excl. shares issued for the BG acquisition, TOT, XOM A leader in dividend growth ~9% reduction in shares outstanding since 2007 16
Consistent financial priorities 2018 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 17