Chevron 2008 3Q Earnings Conference Call Presentation (color)

Third Quarter 2008
Earnings Conference Call
and Webcast

October 31, 2008

George Kirkland
Executive Vice President, Global Upstream & Gas
Steve Crowe
Vice President and Chief Financial Officer
Jim Aleveras
General Manager, Investor Relations

© 2008 Chevron Corporation. All Rights Reserved.

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

This presentation of Chevron Corporation 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,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets”
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, some of which are beyond our 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
presentation. 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 crude-
oil and natural-gas prices; refining, marketing and chemicals margins; actions of competitors; timing of exploration expenses; 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 net 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 OPEC (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 under existing or future environmental statutes, regulations and litigation; the
potential liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; 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 32 and 33 of the company’s 2007 Annual Report on Form 10-K/A. In addition, such
statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors
not discussed in this report could also have material adverse effects on forward-looking statements.
U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with
the SEC. Certain terms, such as “resources,” “undeveloped gas resources,” “oil in place,” “recoverable reserves,” and “recoverable
resources,” among others, may be used in this presentation to describe certain oil and gas properties that are not permitted to be used
in filings with the SEC. In addition, SEC regulations define oil-sands reserves as mining-related and not a part of conventional oil and
gas reserves.

2

Financial Highlights 3Q08

Earnings $7.9 Billion

Earnings per Diluted Share $3.85

ROCE 27.4%
(trailing 12 months)

Capital & Exploratory $5.5 Billion

3Q08 Share Repurchases $2.0 Billion

Debt Ratio 7.4%

Net Cash $4.0 Billion
(Cash less Debt)

3

Chevron Net Income
3Q08 vs. 2Q08
$ Millions

Other
Downstream

419
Upstream

2,565
-1,066
7,893
5,975

2Q08 Net 3Q08 Net
Income Income
4

U.S. Upstream Income
3Q08 vs. 2Q08
$ Millions

Realizations Other
Volumes
September Asset
Hurricanes Sales
-130
-195 371

-400 350
2,191 2,187

2Q08 3Q08
Income Income
5

International Upstream Income
3Q08 vs. 2Q08
$ Millions
Realizations
Volumes
DD&A
-260 & Opex
Other
-635
-220 53

5,057
3,995

2Q08 3Q08
Income Income
6

(1)
Worldwide Oil & Gas Production
3Q08 vs. 2Q08
MBOED

U.S.
Kazakhstan
Nigeria
Other
-55
-7
23
-55

2,537
2,443

2Q08 3Q08
Includes volumes produced from oil sands in Canada.
(1)

7

U.S. Downstream Income
3Q08 vs. 2Q08
$ Millions

Timing
Other
Effects
96

1,014

Shutdown
Impact
-682
Realized
Industry
1,300
Margins /
Margins
Volumes
2Q08 3Q08
380
100
-180
Income Income
8

International Downstream Income
3Q08 vs. 2Q08
$ Millions
Timing
Effects Other

-51

817

Volumes
Margins
-52
15 860
45
2Q08 3Q08
Income Income
9

Chemicals Income
3Q08 vs. 2Q08
$ Millions

Olefins Aromatics

Other

-20
-6

70
55

41

3Q08
2Q08
Income
Income
10

(1)
All Other Net Charges
3Q08 vs. 2Q08
$ Millions

-190
Other

Tax
-580
90
Environmental

110

190
2Q08 Net 3Q08 Net
Charges Charges
Includes mining operations of coal and other minerals, and power generation
(1)

11

Upstream
Update

12

First 3 Quarters Net BOE Production
2007 vs. 2008
MBOED

Price
Major Base
Effects
Capital Business
Projects Decline

Hurricane
Disruptions

-55
-80 57
2,621 -17

2,526

9 Months 9 Months
2007 2008
13

2008 Net BOE Production Outlook
MBOED
4th Qtr Outlook driven by
2,700

▲ Major Capital Projects

▲ Lower Prices

▼ Base Business declines

▼ Hurricanes
2,600

2,650
2,620
2008 Outlook @ $100/bbl
vs. Guidance
2,500
▼ Price
2,550
2,526
▼ Hurricanes

2,400
1st 3 Qtrs 4th Qtr 2008 2008 Outlook 2008 Guidance
2008 Outlook @ $100/bbl @ $70/bbl

14

Chevron 2008 Hurricane Damage

Pascagoula

New Orleans
Houston

(5)
2

2
(6) 3
(2)
2
3

3
3

3

15

Hurricane Restoration Efforts

% Pre-Gustav Pre-storm net OEG
Production Restored
production
100% ~190 MBOED

Permanent hurricane
losses
75%
6 – 10 MBOED

~50% of pre-storm
50% production restored to
date

Forecast dependent on
25%
third party pipeline
Actual
repairs
Forecast
Ike
0%
Sep Oct Nov Dec Jan Feb Mar Apr May

Date

16

2008 Project Status

Nigeria – First production from Agbami (July)
Currently ramping-up, at 110 MBOED

Expected to reach full capacity (250 MBOED) by the end of 2009

Kazakhstan – SGP full capacity start-up (Sep)
TCO operating at 540 MBOED

Australia – First gas from NWS Train 5 (Sep)
Increases export capacity by 4 MMTPA

Republic of the Congo – First production from Moho-Bilondo (April)

17

2008 Project Status (continued)

Azerbaijan – First production from ACG Phase III (April)

United Kingdom – First production from Brodgar-Callanish
(June/July)

Gulf of Mexico – Blind Faith commissioning disrupted by
hurricanes
On track for start-up during 4Q

Indonesia – North Duri Area 12 start-up expected during 4Q

18

2009 Project Status

Gulf of Mexico – Tahiti topside modules successfully installed
First production during 3Q 2009

Brazil – Frade start-up expected during 2Q 2009
FPSO is 85% complete

Angola – Tombua Landana remains on schedule
Tower base sail-away occurred during October

PNZ – Large Scale Steamflood Pilot on schedule
To assess the viability of full-field thermal recovery at Wafra

19

Other Upstream Highlights
PNZ – Successful contract extension signed during 3Q

Canada – Agreement reached with provincial government to
develop Hebron

Australia – Significant progress of Gorgon to FID

Australia – Significant progress of Wheatstone to FEED

China – Anticipate Chuandongbei FID during 4Q

20

Questions and Answers

21

Chevron 2008 3Q Earnings Conference Call Presentation (color)

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