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Chevron Annual Report, Year Ended Dec 31, 2000

Filing Date
Filed March 28, 2001
Period End
December 31, 2000
Security
CVX
In the record · 2016–202610-K1110-Q338-K143

CVX filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Impairment8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 28, 2001. Cited figures are marked; the original filing is the authoritative source.

Chevron Corporation's 2000 Form 10-K reports record net income of $5.185 billiona, 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 $27.20b 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 billionc 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 billiond. 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.

02—Key points

Key Highlights

  1. Record 2000 net income of $5.185 billion, versus $2.070 billion in 1999 and $1.339 billion in 1998
  2. Sales and other operating revenues of $50.592 billion, up from $35.448 billion in 1999
  3. Average U.S. crude oil realization rose 69 percent to $27.20 per barrel; average U.S. natural gas realization rose 87 percent to $4.04 per thousand cubic feet
  4. Exploration and production operational earnings more than doubled to $4.5 billion
  5. Total debt and capital lease obligations fell 30 percent to $6.232 billion, and $1.4 billion of common shares were repurchased in 2000
  6. Pending merger with Texaco: 0.77 Chevron shares per Texaco share, with at least $1.2 billion in annual synergistic savings expected within six to nine months after closing
  7. 2001 capital and exploratory budget of $6.0 billion, 16 percent above 2000 spending, with $3.7 billion for exploration and production

03—Questions

Frequently Asked Questions

  1. How did Chevron's 2000 earnings compare with prior years?

    Net income was $5.185 billion in 2000, compared with $2.070 billion in 1999 and $1.339 billion in 1998. Diluted earnings per share were $7.97, versus $3.14 in 1999. Results included special charges of $252 million after tax in 2000.

  2. What is the terms of the proposed Texaco merger?

    Upon approval by regulators and stockholders of both companies, Chevron will issue 0.77 of its common shares for each share of Texaco common stock, forming ChevronTexaco Corporation. The EU approved the merger on March 1, 2001, while U.S. FTC and other approvals were pending. The companies expect at least $1.2 billion in annual synergistic savings within six to nine months, and merger-related fees are estimated at $125 million.

  3. What drove the 2000 results?

    The filing attributes record earnings mainly to substantially higher crude oil and natural gas prices. WTI averaged $30.34 per barrel, up nearly 60 percent from $19.30 in 1999, and Henry Hub natural gas averaged $4.23 per thousand cubic feet, up 86 percent. Refined product margins in U.S. operations also improved.

  4. How is Chevron's balance sheet and cash position?

    Cash provided by operating activities was $8.662 billion in 2000. The company cut total debt and capital lease obligations by $2.7 billion to $6.232 billion, and the total debt-to-capital ratio fell to 23.8 percent from 33.4 percent. Cash, cash equivalents and marketable securities totaled $2.6 billion at year-end, and the dividend was raised to $2.60 per share.

  5. What are the main risks and legal matters disclosed?

    The filing cites exposure to crude oil and natural gas prices, refining and marketing margins, and the Unocal patent dispute over reformulated gasoline, where the Supreme Court denied review in February 2001 and a $62 million after-tax charge was recorded. It also discloses MTBE-related lawsuits, whose costs are not currently determinable, and approximately $955 million of year-end environmental remediation reserves.

04—Continue

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