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CVX · Chevron

31 filings

10-K

CVX 10-K Annual Reports

Chevron - 31 annual reports

Filing record · 2016–202610-K1110-Q338-K143

2025
Chevron Annual Report, Year Ended Dec 31, 2025
Chevron Corporation (CVX) reported its 2025 annual results, showing a decline in net income attributable to Chevron Corporation to $12.3 billion from $17.7 billion in 2024. This decrease was largely driven by lower liquids realizations and higher depreciation, depletion, and amortization expenses in the upstream segment, partly offset by increased sales volumes and higher natural gas realizations. The company's strategy remains focused on safely delivering lower carbon energy, aiming for higher returns and superior shareholder value by growing its oil and gas business, reducing operational carbon intensity, and expanding new energy ventures. The acquisition of Hess Corporation in July 2025 significantly impacted the company's financials, contributing to a rise in total debt to $40.8 billion from $24.5 billion. Capital expenditures increased to $17.3 billion, with significant investments in U.S. shale, global offshore developments, and new energy initiatives. Despite the lower net income, Chevron continued to return capital to shareholders, repurchasing $12.1 billion of its common stock in 2025 and increasing its quarterly dividend. The company's proved reserves saw an increase of 8% year-over-year, reaching 10.6 billion barrels of oil-equivalent.
Feb 24, 2026
2024
Chevron Annual Report, Year Ended Dec 31, 2024
Chevron Corporation's 2024 Form 10-K details a strong operational performance, with worldwide oil-equivalent production up 7% driven by legacy PDC Energy production and Permian Basin growth. While net income saw a decrease compared to 2023, primarily due to lower commodity prices and downstream margins, the company demonstrated resilience. Chevron continued its commitment to shareholder returns, repurchasing $15.2 billion of its common stock and increasing its quarterly dividend for the 37th consecutive year. The company is strategically advancing its lower-carbon energy ambitions, with significant planned capital investments in renewable fuels, hydrogen, and carbon capture. The company is actively managing its portfolio, evidenced by the recent sale of Canadian assets for $6.5 billion. Looking ahead, Chevron anticipates a 6-8% increase in oil-equivalent production for 2025, contingent on a $70 Brent crude oil price assumption. The pending acquisition of Hess Corporation remains a key strategic initiative, subject to regulatory and arbitration outcomes, which could significantly expand Chevron's footprint, particularly in Guyana. Despite global economic uncertainties and geopolitical risks, Chevron's diversified operations and prudent financial management position it to navigate the evolving energy landscape.
Feb 21, 2025
2023
Chevron Annual Report, Year Ended Dec 31, 2023
Chevron Corporation's (CVX) 2023 10-K filing reveals a solid financial performance, although net income decreased compared to the record year of 2022, primarily due to lower commodity prices across its Upstream segment. The company demonstrated resilience with strong cash flow from operations, supporting significant capital expenditures, dividends, and share repurchases. The acquisition of PDC Energy significantly boosted production, particularly in the Permian Basin and DJ Basin, aligning with Chevron's strategy to grow its oil and gas business while also investing in lower-carbon solutions. Investors should note Chevron's continued commitment to returning capital to shareholders, evidenced by an increase in dividends for the 36th consecutive year and substantial share repurchases. The company's strategic focus remains on delivering higher returns, lower carbon intensity, and superior shareholder value, with ongoing efforts to optimize its portfolio, manage costs, and navigate the evolving energy landscape. The pending acquisition of Hess Corporation, if completed, is expected to further strengthen Chevron's long-term performance, particularly in the attractive Guyana offshore basin.
Feb 26, 2024
2022
Chevron Annual Report, Year Ended Dec 31, 2022
Chevron Corporation's 2022 10-K filing reveals a strong financial performance, driven by significantly higher commodity prices compared to the previous year. The company reported substantial increases in sales and operating revenues, reflecting improved upstream realizations and downstream margins. Chevron's strategic focus on delivering higher returns, lower carbon energy, and superior shareholder value is evident in its operations. The company continues to invest in its traditional oil and gas business while also advancing lower carbon initiatives in renewable fuels, hydrogen, and carbon capture. Significant capital expenditures were allocated to upstream development, particularly in the Permian Basin, and downstream enhancements. The company also highlighted its commitment to shareholder returns through substantial stock repurchases and an increasing quarterly dividend, marking its 35th consecutive year of dividend increases.
Feb 23, 2023
2021
Chevron Annual Report, Year Ended Dec 31, 2021
Chevron Corporation's 2021 10-K filing indicates a significant turnaround from a net loss in 2020 to a substantial net income of $15.6 billion in 2021. This recovery was primarily driven by a sharp increase in crude oil and natural gas prices, which significantly boosted earnings in the Upstream segment, particularly in the U.S. The Downstream segment also showed improved performance, benefiting from higher refined product margins and the performance of its chemical joint ventures. The company demonstrated a strong commitment to shareholder returns, increasing its annual dividend for the 34th consecutive year and continuing its share repurchase program. Chevron is also strategically investing in lower-carbon businesses, allocating approximately $8 billion through 2028 for initiatives in renewable fuels, hydrogen, and carbon capture, while also planning to spend $2 billion to reduce the carbon intensity of its traditional operations. Despite the strong financial rebound, the report highlights ongoing risks, including commodity price volatility, the impact of evolving climate change regulations, and operational risks. The company is navigating these challenges by focusing on efficiency, leveraging its integrated business model, and advancing its lower-carbon strategy.
Feb 24, 2022
2020
Chevron Annual Report, Year Ended Dec 31, 2020
Chevron Corporation's (CVX) 2020 10-K filing reveals a challenging year marked by the significant impact of the COVID-19 pandemic on global energy demand and commodity prices. This resulted in a net loss attributable to Chevron of $5.54 billion for the year, a stark contrast to the profits reported in the preceding two years. The company's upstream segment experienced lower crude oil and natural gas realizations, while the downstream segment faced reduced margins and sales volumes due to decreased demand for refined products, particularly jet fuel. Despite the downturn, Chevron demonstrated resilience by taking swift actions to control costs, including reducing capital expenditures by 35% and operating expenses by $1.4 billion. The company also maintained its commitment to shareholder returns by continuing to pay its dividend, marking its 33rd consecutive year of increasing it. The acquisition of Noble Energy in October 2020 was a significant strategic move, intended to strengthen Chevron's portfolio with low-cost reserves and attractive undeveloped resources, positioning it for future recovery and growth.
Feb 25, 2021
2019
Chevron Annual Report, Year Ended Dec 31, 2019
Chevron Corporation's 2019 Form 10-K details a challenging year marked by lower commodity prices and significant impairment charges, particularly in the U.S. Upstream segment, which reported a substantial loss. Despite these headwinds, the company maintained a strong operational focus, with worldwide oil-equivalent production increasing slightly due to growth in shale and tight properties, notably in the Permian Basin. The Downstream segment demonstrated resilience, though margins were lower compared to the previous year. Chevron continued to invest heavily in capital expenditures, with a significant portion directed towards upstream activities, including major projects in Kazakhstan and the Permian Basin. The company also highlighted its commitment to shareholder returns through consistent dividend increases and ongoing share repurchases, supported by a solid balance sheet and strong credit ratings.
Feb 21, 2020
2018
Chevron Annual Report, Year Ended Dec 31, 2018
Chevron Corporation's 2018 10-K filing reveals a strong financial performance, driven by higher crude oil and natural gas prices which significantly boosted upstream earnings. Total revenues increased substantially, reflecting improved commodity pricing and increased production volumes. The company managed its operations effectively across its global portfolio, demonstrating resilience in a volatile energy market. Key strategic initiatives continue to focus on capital discipline and shareholder returns, including dividends and share repurchases. The company is well-positioned with a robust reserve base and ongoing development projects, aiming to deliver superior shareholder value while navigating the evolving energy landscape.
Feb 22, 2019
2017
Chevron Annual Report, Year Ended Dec 31, 2017
Chevron Corporation's 2017 10-K report details a year of significant recovery and strategic repositioning, driven by higher commodity prices and improved operational efficiency. The company returned to profitability after a challenging 2016, with net income attributable to Chevron Corporation reaching $9.2 billion, a substantial turnaround from a net loss of $0.5 billion in the prior year. This recovery was bolstered by increased upstream earnings, significantly influenced by higher crude oil and natural gas realizations, and a strong performance in the downstream segment, aided by favorable refining margins and the benefits of U.S. tax reform. Operationally, Chevron focused on optimizing its asset portfolio, with upstream production increasing and major projects like Gorgon and Wheatstone LNG in Australia achieving significant milestones with the start-up of new trains. The company also maintained its commitment to shareholder returns, increasing its annual dividend for the 30th consecutive year. Looking ahead, Chevron signaled continued disciplined capital investment, with a planned expenditure of $18.3 billion for 2018, emphasizing growth in advantaged assets like the Permian Basin.
Feb 22, 2018
2016
Chevron Annual Report, Year Ended Dec 31, 2016
Chevron's 2016 10-K shows a severe downturn year: the company posted a net loss attributable to Chevron of $497 million (EPS of -$0.27), versus earnings of $4.59 billion in 2015 and $19.24 billion in 2014. Sales and other operating revenues fell to $110.2 billion from $129.9 billion, and the loss was driven by upstream, where U.S. upstream lost $2.05 billion and international upstream lost $483 million, reflecting Brent averaging $44/bbl in 2016 versus $52 in 2015. Downstream earnings declined to $3.4 billion from $7.6 billion, while the company's all-other segment charged $1.4 billion. Management responded with capital spending cuts of 39% to $18.1 billion, operating and administrative cost reductions of $2.5 billion, and $2.8 billion in net asset sale proceeds, while the dividend was raised by one cent to $4.29 per share for the 29th consecutive annual increase. The balance sheet absorbed the shortfall through borrowing. Total debt and capital lease obligations rose to $46.1 billion from $38.5 billion, the current ratio dropped to 0.9, the debt ratio rose to 24.1% from 20.2%, and the interest coverage ratio turned negative at -2.6x. Management stated that the company retains high-quality credit ratings (AA-/Aa2) and substantial borrowing capacity, and it plans 2017 capital and exploratory spending of $19.8 billion, with upstream production expected to grow 4 to 9 percent at a $50 Brent assumption. For investors, the key issues are the sensitivity of earnings to crude prices, the ability to sustain the dividend while free cash flow is negative after capex, the pace of major project start-ups (Gorgon, Wheatstone, Tengiz FGP/WPMP, Big Foot, Stampede), and litigation exposure tied to the Ecuador/Lago Agrio judgment, for which management does not estimate a reasonably possible loss.
Feb 23, 2017
2015
Chevron Annual Report, Year Ended Dec 31, 2015
Chevron's 2015 10-K shows a sharp earnings collapse driven by the oil price downturn. Net income attributable to Chevron fell to $4.59 billion ($2.45 diluted EPS) from $19.24 billion ($10.14) in 2014, and return on capital employed dropped to 2.5% from 10.9%. Brent averaged $52/bbl in 2015 versus $99 in 2014, and upstream swung to a $1.96 billion loss, with a $4.06 billion loss in the U.S. The effective tax rate fell to 3% from 38%, and roughly $3.5 billion of impairments hit oil and gas properties, largely in Brazil and the U.S. Downstream earnings nearly doubled to $7.6 billion, helped by a $1.6 billion gain on the Caltex Australia sale and stronger refined product margins. Balance sheet leverage rose meaningfully. Total debt and capital lease obligations increased to $38.6 billion from $27.8 billion, and the debt ratio climbed to 20.2% from 15.2%. Cash and marketable securities fell to $11.3 billion, and operating cash flow declined to $19.5 billion from $31.5 billion. Dividends paid were $8.0 billion, which exceeded operating cash flow in the year. Management responded by cutting the 2016 capital and exploratory budget to $26.6 billion from $34.0 billion, suspending share repurchases (none in 2015), and pursuing asset sales. The company still raised its dividend for the 28th consecutive year, to $4.28 per share. Operationally, worldwide oil-equivalent production rose 2% to 2.622 million barrels per day, and proved reserves were essentially flat at 11.2 billion barrels of oil equivalent (a 107% reserve replacement ratio). Guidance for 2016 is flat to 4% production growth. Key risks include continued low crude prices, the Ecuador litigation (a judgment of roughly $9.5 billion that Chevron disputes), the Partitioned Zone shut-in, and the credit rating downgrade by S&P to AA- in February 2016.
Feb 25, 2016
2014
Chevron Annual Report, Year Ended Dec 31, 2014
Chevron's FY2014 10-K shows a year of earnings decline driven by a sharp fall in crude prices in the second half of 2014. Net income attributable to Chevron fell to $19.2 billion ($10.14 diluted EPS) from $21.4 billion ($11.09) in 2013, and sales and other operating revenues dropped to $200.5 billion from $220.2 billion. Upstream earnings fell 19% to $16.9 billion, with international upstream down $3.2 billion to $13.6 billion, while downstream rose to $4.3 billion, helped by $1.6 billion of gains on asset sales and higher refining margins in the U.S. Management states that Brent averaged $99/bbl in 2014 versus $109 in 2013 but had fallen to $60 by mid-February 2015, and warns that a prolonged low-price environment could lead to further spending cuts, asset sales and reduced production. The company responded defensively. Capital and exploratory spending for 2014 was $40.3 billion, and the 2015 budget was cut to $35.0 billion. Management suspended its share repurchase program for 2015 after buying $5.0 billion of stock in 2014, and it raised the quarterly dividend 7% to $1.07 per share, marking the 27th consecutive annual increase. Total debt rose to $27.8 billion from $20.4 billion, which pushed the debt ratio to 15.2% from 12.1% and reduced the interest coverage ratio to 87.2x from 126.2x. Cash and equivalents fell to $13.2 billion. Operating cash flow of $31.5 billion still covered the $7.9 billion dividend, and the company reports that its credit ratings remain AA (S&P) and Aa1 (Moody's). Longer-term, Chevron's pipeline of major projects is central to its growth outlook. Gorgon LNG (88% complete, first train expected Q3 2015), Wheatstone LNG, Big Foot, Jack/St. Malo, Chirag, and Angola's Mafumeira Sul are all scheduled to start up in 2015–2017, and management guides 2015 oil-equivalent production to flat to 3% growth versus 2014's 2.571 million barrels per day. Proved reserves fell 1% to 11.1 billion barrels of oil equivalent, with a reserve replacement ratio of 89%. Ongoing risks include the Ecuador Lago Agrio litigation, where a judgment of about $9.5 billion remains under appeal and enforcement actions are pending in several countries, along with environmental matters at the Richmond refinery and in Pennsylvania.
Feb 20, 2015
2013
Chevron Annual Report, Year Ended Dec 31, 2013
Chevron's 2013 Form 10-K shows a company whose earnings fell while its investment program grew sharply. Net income attributable to Chevron was $21.4 billion in 2013, down 18% from $26.2 billion in 2012 and $26.9 billion in 2011. Diluted EPS was $11.09, versus $13.32 in 2012. The decline was driven by lower U.S. downstream margins, the absence of 2012 asset-sale gains (about $4.2 billion pre-tax in 2012 versus $710 million in 2013), and higher operating and exploration expenses. Revenue fell to $220.2 billion from $230.6 billion, mainly on lower refined product prices and lower crude volumes. Brent averaged $109 per barrel in 2013, down from $112 in 2012, and the U.S. Henry Hub gas price rose to $3.70 per MCF from $2.71. Capital spending rose to $41.9 billion in 2013 from $34.2 billion in 2012, with 90% directed to upstream. Management guides 2014 capital and exploratory spending to $39.8 billion, about 78% of the upstream portion outside the U.S., and expects 2014 production of about 2.61 million barrels of oil equivalent per day, roughly flat with 2013. Much of the spending is on long-cycle LNG and deepwater projects, including Gorgon and Wheatstone in Australia and Angola LNG. Free cash flow was constrained: operating cash flow of $35.0 billion did not cover capex plus dividends and buybacks. To fund the gap, total debt rose to $20.4 billion from $12.2 billion, after a $6 billion bond issuance in June 2013. The debt ratio rose to 12.1% from 8.2%. Dividends were raised 11.1% to $1.00 per quarter, and $5.0 billion of stock was repurchased in 2013. The filing also flags several risks for investors. Ecuador litigation (a $9.5 billion judgment against Chevron, under appeal, with related enforcement actions in several countries) remains unresolved. Brazil's Frade Field spill and the Richmond refinery fire have produced ongoing regulatory exposure, and the company describes its own insurance coverage as limited. Commodity price volatility, particularly crude oil, remains the largest single driver of results.
Feb 21, 2014
2012
Chevron Annual Report, Year Ended Dec 31, 2012
Chevron's 2012 Form 10-K shows a company that remained highly profitable but saw net income slip modestly. Net income attributable to Chevron was $26.2 billion in 2012, down from $26.9 billion in 2011 and up from $19.0 billion in 2010. Diluted EPS was $13.32, versus $13.44 in 2011. Operating revenues fell to $230.6 billion from $244.4 billion, reflecting the 2011 sale of U.K./Irish downstream assets and lower crude volumes. Upstream earnings were $23.8 billion, with international operations contributing $18.5 billion. Downstream earnings rose to $4.3 billion, helped by stronger refined product margins and CPChem results. Returns on capital employed were 18.7%, down from 21.6% in 2011. Production was the main operational watch item. Worldwide oil-equivalent output averaged 2.610 million barrels per day, down about 2% year over year, due to normal field declines, the shut-in of the Frade Field in Brazil, and a Tengizchevroil turnaround. Management guides 2013 output to approximately 2.650 million barrels per day, and new projects such as Usan, Agbami 2 and Perdido are expected to offset declines. Total 2012 capital and exploratory spending was $34.2 billion, with $36.7 billion budgeted for 2013, about 90% of it for exploration and production and roughly 70% outside the U.S. Proved reserves rose to 11.3 billion barrels of oil-equivalent, and the company's large LNG and development pipeline (Gorgon, Wheatstone, Big Foot, Jack/St. Malo, Hebron) underpins medium-term growth. Balance sheet strength and shareholder returns remained solid. Operating cash flow was $38.8 billion, and total debt rose to $12.2 billion, with a debt ratio of 8.2%. The company repurchased $5.0 billion of stock in 2012 under an ongoing program and raised its quarterly dividend 11.1% to $0.90. Key risks disclosed include the Ecuador Lago Agrio judgment (about $19.1 billion, which Chevron contests), a suspended Brazilian production license following the Frade seeps, and exposure to commodity prices and OPEC-related supply factors.
Feb 22, 2013
2011
Chevron Annual Report, Year Ended Dec 31, 2011
Chevron's 2011 Form 10-K shows a year of strong financial results driven by higher commodity prices. Net income attributable to Chevron rose to $26.9 billion in 2011, up from $19.0 billion in 2010 and $10.5 billion in 2009, with diluted EPS of $13.44 versus $9.48 a year earlier. Sales and other operating revenues reached $244.4 billion, and Brent crude averaged $111 per barrel in 2011 versus $80 in 2010. Upstream earnings were $24.8 billion, accounting for the large majority of segment earnings, while downstream earnings more than doubled to $3.6 billion, helped by refining margins and asset sales such as the Pembroke Refinery. Production was broadly flat-to-down: worldwide net oil-equivalent output averaged 2.673 million barrels per day, about 3% below 2010, reflecting normal field declines and entitlement effects, partly offset by new projects such as Perdido, Platong II, Frade and the Marcellus acquisitions. Management guides 2012 production to roughly 2.68 million barrels per day. Total 2011 capital and exploratory spending was $29.1 billion, and 2012 is budgeted at $32.7 billion, with about 78% of the upstream budget directed outside the United States. Proved reserves rose to 8.5 billion barrels of oil equivalent on a consolidated basis, supported by Wheatstone and other discoveries. Investors should weigh several risks disclosed in the filing. The Ecuador Lago Agrio litigation carries a February 2011 judgment of roughly $8.6 billion plus punitive amounts that Chevron is contesting, and management says it cannot estimate a reasonably possible loss. Commodity price volatility, OPEC quotas, project execution risk on large LNG and deepwater developments, and an effective tax rate that rose to 43.3% are further considerations. The company's balance sheet remains strong, with total debt of $10.2 billion, a debt ratio of 7.7%, AA/Aa1 credit ratings, and $41.1 billion of operating cash flow that covered $27.4 billion of cash capital spending and $6.1 billion of dividends.
Feb 23, 2012
2010
Chevron Annual Report, Year Ended Dec 31, 2010
Chevron's FY2010 10-K (filed February 24, 2011) reports a strong recovery year: net income attributable to Chevron of $19.0 billion ($9.48 diluted EPS), up from $10.5 billion in 2009 and roughly 20% below 2008's record $23.9 billion. Sales and other operating revenues rose to $198.2 billion from $167.4 billion, driven mainly by higher crude oil, natural gas and refined product prices (WTI averaged $79/bbl versus $62 in 2009). Upstream earnings were $17.7 billion, with international upstream contributing $13.6 billion, while downstream earnings recovered to $2.5 billion, aided by better refining margins and a $400 million gain on the Colonial Pipeline sale. Return on capital employed was 17.4% and return on stockholders' equity 19.3%. Capital discipline and shareholder returns remained central. Total 2010 capital and exploratory spending was $21.8 billion (87% upstream), and 2011 is budgeted at $26.0 billion, with about 85% for exploration and production. Operating cash flow of $31.4 billion covered that program, $5.7 billion of dividends and $750 million of buybacks. The quarterly dividend rose 5.9% to $0.72, and the company replaced its $15 billion repurchase program with an open-ended program targeting $500 million to $1 billion per quarter. Total debt was $11.5 billion, the debt ratio fell to 9.8%, and the company remains rated AA/Aa1. Production averaged 2.763 million barrels of oil equivalent per day in 2010 and is guided to about 2.790 million in 2011. The company also agreed to acquire Atlas Energy for $4.47 billion, adding Marcellus and Utica shale acreage. The principal investor risk flagged in the filing is the Lago Agrio litigation in Ecuador. On February 14, 2011, a provincial court entered a judgment of roughly $8.6 billion in damages, about $0.9 billion for plaintiffs' representatives, and a further $8.6 billion in punitive damages unless Chevron issues a public apology. Chevron calls the judgment illegitimate and unenforceable, is appealing, and has obtained interim arbitration measures against Ecuador. Management says it cannot estimate a reasonably possible loss. Other risks include commodity price volatility, the Gulf of Mexico drilling moratorium's effect on output, and greenhouse gas regulation.
Feb 24, 2011
2009
Chevron Annual Report, Year Ended Dec 31, 2009
Chevron's FY2009 Form 10-K (filed February 25, 2010) shows a sharp earnings decline from the 2008 peak, driven by lower commodity prices, while the company maintained its financial strength and continued to invest heavily in upstream growth. Net income attributable to Chevron fell to $10.5 billion in 2009 from $23.9 billion in 2008, and diluted EPS dropped to $5.24 from $11.67. Sales and other operating revenues declined to $167.4 billion from $265.0 billion. Upstream earnings fell to $10.4 billion (U.S. $2.2 billion, international $8.2 billion), while downstream earnings collapsed, with U.S. downstream posting a $273 million loss. Operating cash flow was $19.4 billion versus $29.6 billion in 2008, and the company still covered its capital program and dividends, which were raised 4.6% to $0.68 per quarter. Management is positioning for growth. Total 2009 capital and exploratory expenditures were $22.2 billion, about three-quarters of which went to upstream, and the 2010 budget is $21.6 billion, with roughly 80% for exploration and production. Average worldwide oil-equivalent production rose about 7% to 2.7 million barrels per day, and management guides to about 2.73 million barrels per day in 2010. Key project starts include Tahiti, Agbami, Gorgon (LNG, final investment decision taken in 2009), Frade, and Usan, along with the Perdido host facility expected in 2010. Management also announced a downstream restructuring, including exits from some markets such as the mid-Atlantic and eastern U.S. branded fuel sales by mid-2010, which may produce future gains or losses. Key risks include commodity price volatility, exposure to OPEC production quotas and political instability (26% of net proved reserves are in Kazakhstan, and 22% are in OPEC countries), climate-related regulation, and a large uncertain legal exposure in Ecuador, where the plaintiffs' engineer recommended damages of $18.9 billion plus $8.4 billion for unjust enrichment. Chevron states it believes the lawsuit lacks merit and that no reasonably possible loss estimate can be made. Balance sheet metrics remain strong, with a current ratio of 1.4, total debt of $10.5 billion, and an AA/Aa1 credit rating, although debt rose by $1.6 billion after a $5 billion bond issuance in 2009.
Feb 25, 2010
2008
Chevron Annual Report, Year Ended Dec 31, 2008
Chevron's 2008 Form 10-K (filed February 26, 2009) reports a year of record-level earnings driven by the commodity price cycle. Net income rose 28% to $23.9 billion (diluted EPS $11.67, up from $8.77), on operating revenues of $265.0 billion (up 24%). Upstream income reached $21.7 billion, up roughly 47%, with international upstream contributing $14.6 billion. Average WTI crude started 2008 at $96, peaked at $147 in early July, and closed the year near $45, averaging $100 for the full year versus $72 in 2007. Downstream income was steady at $3.4 billion, while chemicals fell sharply to $182 million from $396 million, and 'All Other' posted a $1.4 billion net charge. The report also flags a deteriorating outlook. Worldwide oil-equivalent production declined about 3% to 2.53 million barrels per day, mainly due to Gulf of Mexico hurricane damage and higher prices reducing volumes under production-sharing and variable-royalty contracts. Management projects 2009 production of about 2.63 million barrels per day, subject to OPEC quotas that cut output by 4.2 million barrels per day effective January 2009. Capital and exploratory spending for 2009 is budgeted at $22.8 billion, flat with 2008, with about three-fourths directed to upstream. Proved reserves stood at 7.9 billion barrels of oil-equivalent for consolidated companies, with another 3.3 billion barrels held by affiliates, and the company repurchased $8.0 billion of stock in 2008 under a $15 billion program. The key investor risks are the sensitivity of earnings to commodity prices, a large unresolved Ecuador environmental lawsuit in which a court-appointed engineer's revised report sought $18.9 billion in damages plus $8.4 billion in unjust enrichment, and substantial pension and retiree obligations. The company's balance sheet remained strong, with debt rising to $8.9 billion (debt ratio 9.3%) and interest coverage of 166.9x. Cash from operations was $29.6 billion, enough to cover capital spending, $5.2 billion in dividends, and buybacks, though buybacks were suspended in early 2009.
Feb 26, 2009
2007-A
Chevron Annual Report (Amendment), Year Ended Dec 31, 2007
Chevron's 2007 Form 10-K (filed March 27, 2008) shows a company at a high point of earnings and cash generation. Net income rose to $18.7 billion in 2007, up about 9% from $17.1 billion in 2006, and diluted EPS was $8.77 versus $7.80. Sales and other operating revenues reached $214.1 billion, and net cash from operations was $25.0 billion. Upstream (exploration and production) drove the results, contributing $14.8 billion of segment income, with international upstream at $10.3 billion. Downstream earnings fell sharply to $3.5 billion from $4.0 billion, largely because of weaker U.S. refining margins caused by planned and unplanned refinery downtime, including fire damage at the Richmond and Pascagoula refineries. Those pressures were partly offset by roughly $1 billion of asset-sale gains in the Benelux region and a $680 million gain on the sale of the Dynegy stake. The company is investing heavily for growth. Total 2007 capital and exploratory expenditures were $20.0 billion, 78% of it upstream, and 2008 spending is budgeted at $22.9 billion, 15% higher. Major projects include the Tahiti and Blind Faith deepwater Gulf of Mexico fields, the Angola LNG plant, the Gorgon LNG project in Australia, Tengizchevroil's expansion in Kazakhstan, and the Piceance tight-gas development. Production was roughly flat, with 2007 oil-equivalent output of 2.59 million barrels per day including affiliates, and 2008 is guided to about 2.65 million. Proved reserves declined to 7.9 billion barrels of consolidated oil-equivalent reserves from 8.6 billion, partly because of higher year-end prices affecting production-sharing and variable-royalty contracts. Capital returns and balance sheet strength stand out. Chevron paid $4.8 billion in dividends, raised the quarterly dividend 11.5% to $0.58, and bought back $7.0 billion of stock, with a new $15 billion repurchase authorization over up to three years. Total debt fell to $7.2 billion from $9.8 billion, and the debt-to-capital ratio dropped to 8.6% from 12.5%. Key risks include crude price volatility, exposure to OPEC-member countries (28% of net proved reserves), concentration in Kazakhstan (26% of proved reserves), rising greenhouse-gas regulation, and an unresolved MTBE litigation exposure that could be material to net income in any single period.
Mar 27, 2008
2007
Chevron Annual Report, Year Ended Dec 31, 2007
Chevron's 2007 Form 10-K (filed February 28, 2008) reports a year of record-level earnings driven by high commodity prices. Net income rose 9% to $18.7 billion (diluted EPS $8.77, up from $7.80), on sales and other operating revenues of $214.1 billion. Upstream was the engine, with segment income of $14.8 billion (up 13%), and international upstream contributed $10.3 billion. Downstream earnings fell sharply to $3.5 billion from $4.0 billion, as U.S. downstream income dropped to $966 million from $1.9 billion due to weaker refined-product margins and planned and unplanned refinery downtime. 2007 results also included roughly $2 billion of gains on asset sales, including the $680 million Dynegy stake sale and about $1.1 billion from downstream divestitures in the Benelux countries. The company's capital program is growing. Total 2007 capital and exploratory spending was $20.0 billion, 78% of it upstream. Management guides 2008 spending up 15% to $22.9 billion, with about $17.5 billion for exploration and production, and projects 2008 oil-equivalent production of about 2.65 million barrels per day, versus 2.62 million in 2007. Shareholder returns were also significant: dividends rose 11.5% to $0.58 per quarter, dividends paid totaled about $4.8 billion, and a new $15 billion buyback program was authorized in September 2007, of which $2.1 billion had been used by year-end. Balance sheet strength improved, with total debt down to $7.2 billion from $9.8 billion and a debt-to-capital ratio of 8.6%, compared with 12.5% a year earlier. Key risks include exposure to crude-oil prices (WTI averaged about $72 per barrel in 2007 and was near $93 in mid-February 2008), geopolitical and fiscal-term risk (26% of proved reserves in Kazakhstan, 28% in OPEC countries), Venezuela's conversion of Orinoco projects to PDVSA-controlled structures, and the pending MTBE litigation. Proved reserves at year-end 2007 were 7.9 billion oil-equivalent barrels consolidated, plus 2.9 billion barrels for affiliates.
Feb 28, 2008
2006
Chevron Annual Report, Year Ended Dec 31, 2006
Chevron Corporation's 2006 Form 10-K highlights a strong financial performance driven by high crude oil prices and successful upstream operations, significantly boosted by the acquisition of Unocal in late 2005. The company demonstrated robust earnings and significant capital expenditure, with a substantial portion directed towards exploration and production activities, particularly in international upstream segments. Key operational highlights include increased oil-equivalent production, ongoing development of major deepwater projects in the Gulf of Mexico and significant projects in Angola and Australia. The downstream segment also showed improved performance, benefiting from higher refining margins and operational efficiencies. Chevron continued to invest in renewable energy technologies and technological advancements to enhance performance. Risks remain, including the volatility of commodity prices, geopolitical instability in operating regions, and potential regulatory changes regarding greenhouse gas emissions. However, the company's diversified operations, strong balance sheet, and strategic investments position it to navigate these challenges and continue creating shareholder value.
Feb 28, 2007
2005
Chevron Annual Report, Year Ended Dec 31, 2005
Chevron's 2005 10-K (filed March 1, 2006) reports a record year shaped by the August 2005 acquisition of Unocal, which added roughly 1.5 billion barrels of net oil-equivalent proved reserves and was valued at $17.3 billion. Net income rose to $14.1 billion in 2005 from $13.3 billion in 2004, while sales and other operating revenues climbed about 28% to $193.6 billion. Upstream (exploration and production) earned $11.7 billion, up from $9.5 billion, and international upstream was the main driver. Downstream earnings fell to $2.8 billion from $3.3 billion as hurricane-related downtime and higher costs offset stronger refining margins. Management guides to significantly higher investment and production in 2006. Capital and exploratory spending is projected to rise 33% to $14.8 billion, with about $11.3 billion directed to exploration and production, and oil-equivalent production is expected to reach 2.7 to 2.8 million barrels per day, up from about 2.5 million in 2005. Growth drivers include Unocal properties, new project start-ups, and major developments such as Tahiti, Blind Faith, Agbami, TCO's expansion, and Gorgon LNG. Hurricanes Katrina and Rita reduced Gulf of Mexico output, and management expects Gulf production of about 200,000 barrels per day in 2006 versus roughly 300,000 before the storms. Balance sheet and shareholder returns remained strong. Total debt rose to $12.9 billion, the debt-to-capital ratio fell to 17.0% from 19.9%, and stockholders' equity reached $62.7 billion. Dividends rose 12.5% to $0.45 per quarter, and the company repurchased about $3 billion of stock in 2005, with a new authorization of up to $5 billion over three years. Key risks flagged include commodity price volatility, hurricane and political disruption, OPEC quotas, and environmental liabilities, including about $1.3 billion of environmental reserves and ongoing MTBE litigation.
Mar 1, 2006
2004
Chevron Annual Report, Year Ended Dec 31, 2004
ChevronTexaco's 2004 Form 10-K shows a record earnings year driven by high commodity prices and large asset-sale gains. Net income rose to $13.3 billion ($6.28 diluted EPS) from $7.2 billion in 2003, on sales and other operating revenues of $150.9 billion. Upstream (exploration and production) earned $9.5 billion, and downstream (refining, marketing and transportation) earned $3.3 billion, its best result in recent years. Results also include $1.2 billion of net special gains, mainly from the sale of more than 300 North American producing properties for about $2.5 billion, so underlying earnings growth was smaller than the headline figure suggests. The balance sheet strengthened considerably. Cash and marketable securities reached $10.7 billion, total debt fell to $11.3 billion, and the debt-to-capital ratio dropped to 19.9% from 25.8%. The company paid $3.2 billion in dividends, repurchased $2.1 billion of stock under a $5 billion three-year program, and raised its quarterly dividend 10% to $0.40 per share after a two-for-one split in September 2004. The main risks are commodity-price exposure, a steady production decline (worldwide oil-equivalent output fell about 5% in 2004 and is expected to fall again in 2005, partly from Hurricane Ivan), and concentrated geopolitical exposure, with about 27% of proved reserves in Kazakhstan. Management guides to 2005 capital and exploratory spending of about $10 billion, 20% higher than 2004, with the Tengizchevroil expansion and deepwater projects as key growth drivers.
Mar 3, 2005
2003
Chevron Annual Report, Year Ended Dec 31, 2003
ChevronTexaco's 2003 Form 10-K shows a sharp earnings recovery: net income rose to $7.23 billion ($6.96 diluted per share) from $1.13 billion in 2002, driven mainly by higher crude oil and natural gas prices (WTI averaged about $31, Henry Hub gas above $5/mcf) and a rebound in downstream refining margins. Operating revenues reached $120 billion. Results were helped by a $365 million gain on the exchange of Dynegy preferred stock, while 2002 was depressed by $2.3 billion of Dynegy-related write-downs. Excluding special items, the upstream segment carried earnings, with U.S. and international E&P segment income of $2.8 billion and $3.4 billion respectively. Balance sheet and cash flow strengthened meaningfully. Operating cash flow rose 24% to $12.3 billion, total debt fell by $3.7 billion to $12.6 billion, and the debt-to-capitalization ratio dropped to about 26% from 34%. Equity grew to $36.3 billion. Capital and exploratory spending was $7.4 billion including affiliates, down from $9.3 billion, and management guided to $8.5 billion for 2004, with about 75% directed to exploration and production. The company's underlying concerns remain production and portfolio issues. Worldwide oil-equivalent output fell about 4% in 2003, with U.S. output down 7% due to mature field declines and storm damage, and management expects further U.S. declines in 2004. Management is pursuing a significant asset disposition program (about $1.1 billion of assets held for sale, mainly U.S. non-core properties), a global restructuring of the downstream business, and a potentially material MTBE and Unocal patent litigation exposure. Reserve replacement was 108% of production, the 11th consecutive year above 100%.
Mar 9, 2004
2002
Chevron Annual Report, Year Ended Dec 31, 2002
ChevronTexaco's 2002 10-K shows a sharp earnings decline driven by a large non-cash write-down tied to its Dynegy investment. Net income fell to $1.132 billion ($1.07 per diluted share) from $3.288 billion in 2001 and $7.727 billion in 2000, and return on average stockholders' equity dropped to 3.5%. Special items totaled a $3.334 billion after-tax charge, of which $2.306 billion related to Dynegy (a $1.626 billion write-down of its common and preferred stock plus $680 million of its share of Dynegy's own special items). Excluding special items, the business remained profitable, but upstream results were pressured by lower U.S. natural gas realizations (about $2.89 per Mcf versus $4.38 in 2001) and a 3% decline in worldwide oil-equivalent production. Downstream earnings collapsed to a loss in the U.S. segment, with management stating it does not expect a rebound to 2001 or 2000 levels in 2003. Balance sheet and cash flow remained solid. Operating cash flow was $9.9 billion, cash and marketable securities totaled $3.8 billion, total debt and capital lease obligations declined to $16.3 billion, and the debt-to-capital ratio was 34%. Credit ratings were AA (S&P) and Aa2 (Moody's). The company's 2003 capital and exploratory budget is $8.5 billion, about 8% below 2002, with roughly 75% allocated to exploration and production and most of that outside the U.S. Management is also reviewing its asset portfolio and may pursue dispositions, and it is rebuilding a U.S. natural gas marketing function after Dynegy exited gas trading. The company's Dynegy preferred stock ($1.5 billion face, carried at $300 million) is not expected to be redeemed in full when due, and Dynegy's re-audit could trigger further restatements or write-downs. Key 2003 watch items include the outcome of the Dynegy recapitalization, the Unocal patent litigation affecting gasoline sales, the Venezuela general strike impact on production, and growth projects such as Tengiz (expected to lift capacity to 430,000 to 500,000 barrels per day by mid-2006) and the Athabasca oil sands. Production in 2003 is expected to be slightly above 2002 levels in capacity terms, but actual output remains uncertain due to OPEC quotas and geopolitical risk.
Mar 17, 2003
2000
Chevron Annual Report, Year Ended Dec 31, 2000
Chevron Corporation's 2000 Form 10-K reports record net income of $5.185 billion, up from $2.070 billion in 1999 and $1.339 billion in 1998. Results were driven mainly by sharply higher crude oil and natural gas prices, with the average U.S. crude oil realization rising 69 percent to $27.20 per barrel. Exploration and production operational earnings more than doubled to $4.5 billion, while U.S. refining, marketing and transportation earnings excluding special items doubled to $778 million. Sales and other operating revenues were $50.592 billion, and cash provided by operating activities was $8.662 billion. The company reduced total debt and capital lease obligations by 30 percent to $6.232 billion and repurchased $1.4 billion of its common shares before suspending the program upon the Texaco merger announcement. The filing is dominated by the pending combination with Texaco, announced in October 2000, under which Chevron will issue 0.77 of its common shares for each Texaco share to form ChevronTexaco Corporation. The companies expect at least $1.2 billion in annual synergistic savings within six to nine months of the merger, and merger-related fees and expenses are estimated at $125 million. The European Union approved the merger on March 1, 2001, while approvals from the U.S. Federal Trade Commission and other agencies were still pending. The FTC was expected to require divestitures of certain U.S. refining, marketing and transportation businesses, and the merger agreement provides for termination fees of up to $1 billion. For 2001, the company projects capital and exploratory expenditures of $6.0 billion on a stand-alone basis, 16 percent above 2000 levels, with $3.7 billion planned for exploration and production. Key growth projects include the Tengizchevroil field in Kazakhstan, where Chevron's interest rose to 50 percent in January 2001, and the Caspian Pipeline Consortium, scheduled for mid-2001 start-up. The filing also notes ongoing legal and environmental matters, including the Unocal gasoline patent dispute, for which the Supreme Court denied review in February 2001, and a $62 million after-tax charge recorded in 2000 related to that ruling.
Mar 28, 2001
1999
Chevron Annual Report, Year Ended Dec 31, 1999
Chevron's 1999 results showed a sharp recovery from the 1998 downturn. Net income rose 55 percent to $2.070 billion ($3.14 diluted EPS), up from $1.339 billion in 1998, though still 36 percent below the record $3.256 billion earned in 1997. Sales and other operating revenues climbed to $35.4 billion from $29.9 billion, driven by higher crude oil and refined product prices. Upstream results drove the improvement: exploration and production earnings rose 80 percent to $1.619 billion, while refining, marketing and transportation earnings fell 44 percent to $431 million on compressed margins. Average U.S. crude realizations rose 41 percent to $16.11 per barrel. Worldwide oil-equivalent reserve additions exceeded production for the seventh straight year, with a 108 percent replacement rate including acquisitions. The company's balance sheet and cash flow were stretched by 1999 acquisitions (Rutherford-Moran in Thailand and Petrolera Argentina San Jorge in Argentina), a $775 million Cities Service litigation settlement, and continued dividend payments of $2.48 per share. Operating cash flow of $4.48 billion did not fully cover capital spending and dividends, so total debt rose 18 percent to $8.9 billion and the debt-to-capital ratio increased to 33.4 percent. Management guided 2000 capital and exploratory spending down about 15 percent to $5.2 billion, targeted 15 percent annual EPS growth for 2000-2002, and announced a planned 50-50 chemicals joint venture with Phillips Petroleum. Cost-reduction and restructuring actions, including roughly 3,472 job eliminations, are expected to be completed by mid-2000. Key risks for investors include commodity price volatility, a pending Unocal gasoline patent ruling that could require royalties and a roughly $75 million after-tax charge, MTBE and royalty litigation, and political and operating risk in developing countries such as Angola, Kazakhstan and Nigeria.
Mar 30, 2000
1998
Chevron Annual Report, Year Ended Dec 31, 1998
Chevron's 1998 10-K shows a sharp earnings decline driven by the collapse in crude prices. Net income fell 59% to $1.339 billion from a record $3.256 billion in 1997, and sales and other operating revenues dropped 26% to $29.9 billion. Excluding special items, earnings were $1.945 billion, down 39%. The results were weighed down by a $637 million litigation reserve tied to the Cities Service lawsuit, which the Oklahoma Supreme Court affirmed in March 1999. Average U.S. crude realizations fell to $11.42 per barrel, the lowest in 20 years, and the company said it did not expect significant price improvement near term. Management is responding with a further $500 million cost reduction target for 1999 and a 1999 capital and exploratory budget of $5.1 billion, about 4% below 1998. The balance sheet and cash flow picture weakened. Operating cash flow fell to $3.73 billion from $4.88 billion, which was not enough to cover investing needs and dividends of $2.44 per share. Total debt rose 25% to $7.56 billion, and the debt-to-capital ratio climbed to 30.7% from 25.8%. The interest coverage ratio dropped to 5.1 from 14.3. Chevron still carries AA/Aa2 senior debt ratings and has $4.05 billion in committed credit facilities, and it says its dividend has been paid for 87 consecutive years. Strategically, Chevron is concentrating capital on international upstream growth, including Kazakhstan's Tengiz field, West Africa, Hibernia offshore Canada, and the deepwater Gulf of Mexico. It is curtailing chemicals and downstream spending. Other items to note are the March 1999 explosion at the Richmond, California refinery, the planned Permian Basin combination with ARCO's unit, and the pending Caltex IRS excise tax claim, which Chevron and Texaco have guaranteed through a $2.52 billion letter of credit.
Mar 31, 1999
1995
Chevron Annual Report, Year Ended Dec 31, 1995
Chevron Corporation's 1995 Form 10-K shows a company whose earnings were sharply reduced by one-time charges even as its underlying operations improved. Reported net income fell to $930 million ($1.43 per share) from $1.693 billion in 1994, driven by $1.032 billion of after-tax special items, most notably a $659 million non-cash charge from adopting SFAS 121 on long-lived asset impairment. Excluding special items, operating earnings rose 17% to $1.962 billion from $1.671 billion (the report's own figure, which excludes the SFAS 121 effect and special items). Sales and other operating revenues rose 3% to $36.3 billion, and the dividend was raised to $1.925 per share from $1.85. The operating picture was mixed by segment. Chemicals reported record operational earnings of $524 million, and international upstream posted record earnings, with international oil and gas production up about 4% and the company replacing roughly 138% of worldwide production through reserve additions. U.S. downstream was the weak spot: U.S. refining and marketing earnings excluding special items fell 77% on heavy refinery turnaround downtime, weak margins, and the Richmond, California, upgrade. U.S. natural gas prices fell to $1.51 per MCF, which weighed on U.S. upstream results. Management expects improved U.S. refining results in 1996, expects chemicals to be weaker in 1996, and plans to merge certain U.S. natural gas and NGL operations with NGC Corporation for a roughly 28% stake in the combined company. Balance sheet and cash flow were stable. Cash from operations was $4.1 billion, the company's debt-to-capital ratio was 36.7%, and its senior debt was rated AA by S&P and Aa2 by Moody's. Capital and exploratory spending was $4.8 billion in 1995, with about $5.3 billion planned for 1996, including $3.0 billion for exploration and production, roughly 65% of it international. Key risks disclosed include the Cities Service litigation, the EPA penalty matters, Superfund exposure, and political uncertainty in Nigeria, Angola, and Zaire.
Mar 27, 1996
1994
Chevron Annual Report, Year Ended Dec 31, 1994
Chevron's 1994 results reflected a weak commodity price environment offset by strong chemicals earnings and a one-time tax benefit. Net income rose 34% to $1.693 billion ($2.60 per share) from $1.265 billion in 1993, but this was flattered by $344 million of prior-year tax adjustments, including a $301 million reversal of tax reserves from an IRS global settlement, and a $319 million reversal of accrued interest reserves. Excluding special items, 1994 earnings of $1.671 billion actually declined 22% from 1993 operating earnings of $2.148 billion. Sales fell to $35.1 billion from $36.2 billion as crude oil, natural gas and refined product prices declined, while U.S. crude realizations dropped to $13.86 per barrel and Henry Hub gas averaged $1.86 per MCF. Management's strategy centers on shifting capital toward international upstream growth, which now accounts for about 71% of E&P spending, and on exiting non-core businesses. Chevron sold its Philadelphia refinery in 1994 and Port Arthur refinery in February 1995, lowered its U.S. upstream cash generation target from $1 billion to $800 million annually, and plans roughly $5.1 billion of capital and exploratory spending in 1995, including affiliates. Major growth projects include Hibernia, Tengizchevroil in Kazakhstan, the North West Shelf in Australia, Britannia in the North Sea and expanded Caltex refining in Asia. Chemicals earnings rebounded sharply to $206 million from $143 million. Balance sheet metrics remain solid: total debt to total capital was 35.8%, senior debt is rated AA by S&P, and the company held $4.4 billion of committed credit facilities. Risks include the Cities Service lawsuit (seeking not less than $2.7 billion in original damages), environmental remediation reserves of $1.219 billion, a Superfund exposure across 238 sites, and political instability in Nigeria, Angola and Zaire. Investors should weigh the one-time tax and interest reserve reversals when judging underlying earnings power.
Mar 30, 1995
1993
Chevron Annual Report, Year Ended Dec 31, 1993
Chevron Corporation's 1993 Form 10-K, filed March 30, 1994, describes a year of weak oil prices, a large restructuring, and a continued pivot toward international upstream growth. Net income fell 19% to $1.265 billion ($3.89 per share) from $1.569 billion in 1992, but the headline figure is distorted by special items. Special items reduced 1993 earnings by $883 million after tax, driven largely by a $543 million charge to restructure U.S. refining and marketing (the sale of the Philadelphia and Port Arthur refineries). Excluding special items and the 1992 accounting-change charge, earnings were $2.148 billion, up 38% from 1992. Crude prices fell to five-year lows by year-end, with WTI posted at $13.25, and the company's realization from U.S. crude fell to $14.58 per barrel. Sales and other operating revenues declined to $36.2 billion from $38.2 billion. Management is pursuing a strategy of shifting capital to international exploration and production (68% of E&P spending in 1993, expected to reach 75% in 1994), growing the Caltex affiliate in Asia Pacific, reducing refining capacity by about 25%, and cutting costs. Operating and administrative costs fell to $6.51 per barrel from $7.45 in 1991, and the company set a further target of a $0.25 per barrel reduction by the end of 1994. Balance-sheet metrics are solid: the debt-to-capital ratio improved to 35.0%, senior debt is rated AA/Aa2, and the company plans a two-for-one stock split and a 5-cent quarterly dividend increase to $0.925 per share. Key risks include continued low crude and product prices, dependence on the Tengizchevroil (Kazakhstan) pipeline to unlock production growth, Point Arguello production disruption after tankering was suspended, and substantial environmental compliance spending (about $1.1 billion in refining capital over five years). Pending legal matters, including the Cities Service and Gulf Pension litigation, were not expected to be material.
Mar 30, 1994