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© 2008 Chevron Corporation Financial Priorities & Financial Priorities & Performance Performance Steve Crowe Steve Crowe Vice President and Vice President and Chief Financial Officer Chief Financial Officer

Chevron Finance

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Page 1: Chevron  Finance

© 2008 Chevron Corporation

Financial Priorities & Financial Priorities & PerformancePerformance

Steve CroweSteve CroweVice President and Vice President and Chief Financial OfficerChief Financial Officer

Page 2: Chevron  Finance

2© 2008 Chevron Corporation

Key Financial Priorities

Fund capital programFund capital program

Maintain AA credit ratingMaintain AA credit rating

Increase dividends annuallyIncrease dividends annually

Repurchase sharesRepurchase shares

Page 3: Chevron  Finance

3© 2008 Chevron Corporation

Record Earnings Again

0.00.0(0.5)(0.5)OtherOther

0.40.40.50.5ChemicalChemical

17.117.1

4.04.0

13.113.1

20062006

18.718.7Net IncomeNet Income

3.53.5DownstreamDownstream

14.814.8UpstreamUpstream

20072007

$ Billions$ Billions

13.314.1

17.1 18.7

0

5

10

15

20

2004 2005 2006 2007

$ Billions$ Billions

Page 4: Chevron  Finance

4© 2008 Chevron Corporation

A Diversified PortfolioStrong Returns Across the Segments

n/an/a55OtherOther

17%17%22ChemicalChemical

$84$84

2424

5353

23%23%

16%16%DownstreamDownstream

30%30%Upstream Upstream 11

1 Upstream includes Goodwill of $5 Billion2 Peer group includes: BP, COP, RDS, and XOM3 Updated March 26th, 2008

$23

$6$15

$20$4 $11

Capital Capital EmployedEmployed ROCEROCE

Capital EmployedCapital Employed

$ Billions 2007$ Billions 2007

Ranked #2 in peer group Ranked #2 in peer group 22

33

Page 5: Chevron  Finance

5© 2008 Chevron Corporation

2004–2007 Uses of Cash FromOperations and Divestments

55%

4%9%

15%

17%

Capital Capital SpendingSpending

DividendsDividends

Debt ReductionDebt Reduction

BuybacksBuybacks

Cash & OtherCash & Other

$97 Billion$97 Billion

Page 6: Chevron  Finance

6© 2008 Chevron Corporation

Capital Spending Reflects Our Growth Opportunities

* Capital expenditures/net cash provided by operating activities per statement of cash flows

PercentReinvestment Ratios *

0

10

20

30

40

50

60

70

80

90

20042004 20052005 20062006 20072007

CVXCVX XOMXOM BPBP COPCOP RDSRDS

Page 7: Chevron  Finance

7© 2008 Chevron Corporation

Investing for the Future2008 Capital & Exploratory Expenditures

CashCashCAPEXCAPEX

2.62.6

20.020.0

InterestInterestCapitalizationCapitalization

Affiliate Affiliate SpendingSpending

TotalTotalC&EC&E

22.922.9

$ Billions$ Billions

0.30.3 Chemical Chemical & Other& Other

DownstreamDownstream

UpstreamUpstream

1.31.3

17.517.5

4.14.1

Page 8: Chevron  Finance

8© 2008 Chevron Corporation

Agbami

Angola LNG

Athabasca Expansion

Blind Faith

Perdido Development

Frade

Pascagoula CCR

South Korea Yield Project

Tombua Landana

Tahiti

Piceance

-1

4

9

14

19

24

Discipline in Selecting and Executing Value-Creating Projects

* Includes Chevron’s share of affiliates' expenditures, which does not require cash outlay by Chevron

$ Billion $ Billion

2008 Total Capital & Exploratory Expenditures: $22.9 Billion*2008 Total Capital & Exploratory Expenditures: $22.9 Billion*

North America

Africa

Asia-Pacific

Rest of World 15%

20%

24%

41%

Page 9: Chevron  Finance

9© 2008 Chevron Corporation

9.8

12.911.3

7.2

2004 2005 2006 2007

Exceptionally Strong Balance Sheet

Debt Debt RatioRatio 20%20% 17%17% 13%13%

Net Net DebtDebt 0.50.5 1.71.7 (0.9)(0.9)

8.6%8.6%

(1.6)(1.6)

Debt Debt $ Billions$ Billions

Page 10: Chevron  Finance

10© 2008 Chevron Corporation

Consistent Dividend Growth

20 consecutive 20 consecutive annual increasesannual increases

Growth rateGrowth rate

6.9% since 19876.9% since 1987

10.1% since 200210.1% since 2002

Current yield ~3%Current yield ~3%

0%

50%

100%

150%

200%

250%

300%

1987 1991 1995 1999 2003 2007

Page 11: Chevron  Finance

11© 2008 Chevron Corporation

Delivering Shareholder ValueCash Returned to Shareholders

2004 2004 –– 20072007

BuybacksBuybacks

$17.1 Billion$17.1 Billion

$66.07/Share$66.07/Share

259 Million Shares259 Million Shares

DividendsDividends

$16.2 Billion$16.2 Billion

$ Billions $ Billions

3.2 3.8 4.4

2.13.0

5.0

4.8

7.0

5.3

6.8

9.4

11.8

0

2

4

6

8

10

12

2004 2005 2006 2007

Buybacks

Dividends

Page 12: Chevron  Finance

12© 2008 Chevron Corporation

Disciplined Cost Management

Safe and Reliable Safe and Reliable OperationsOperations

Energy EfficiencyEnergy Efficiency

Rig StrategyRig Strategy

Application of Application of TechnologyTechnology

Page 13: Chevron  Finance

13© 2008 Chevron Corporation

Balancing Earnings Growth WithCurrent Profitability

Disciplined project Disciplined project selectionselection

WorldWorld--class project class project executionexecution

Exploration successExploration success

Excellent project queueExcellent project queue

Technical/financial Technical/financial resourcesresources

Earnings GrowthEarnings Growth

Reliable and safe Reliable and safe operationsoperations

Attentive to cost Attentive to cost structurestructure

Base business Base business capabilitycapability

Earnings/returns Earnings/returns mindsetmindset

Current ProfitabilityCurrent Profitability