10-KPeriod: FY2007

CHEVRON CORP Annual Report, Year Ended Dec 31, 2007

Filed February 28, 2008For Securities:CVX

Summary

Chevron Corporation's 2007 annual report highlights a year of robust performance, driven by strong upstream earnings, which significantly benefited from higher crude oil and natural gas prices. The company's strategic focus on profitable growth in core areas, alongside investments in new legacy positions and a global gas business, is evident in its operational developments across various regions. Downstream operations also showed resilience, despite some refinery downtime, with international segments contributing positively, bolstered by asset sales. The company continued its commitment to returning value to shareholders through increased dividends and a significant share repurchase program, demonstrating financial strength and confidence in its future prospects.

Financial Highlights

22 data points
Beta

Revenue

$220.90B

Net Income

$18.69B

8.5% Net Margin

EPS (Diluted)

$8.77

Cash & Equivalents

$7.36B

Free Cash Flow

$24.98B

Financial Statements
Beta
Revenue$220.90B
SG&A Expenses$5.93B
Operating Expenses$188.63B
Interest Expense$166.00M
Net Income$18.69B
EPS (Basic)$8.83
EPS (Diluted)$8.77

Key Highlights

  • 1Chevron reported strong upstream earnings, largely attributed to favorable crude oil and natural gas prices throughout 2007.
  • 2The company's capital and exploratory expenditures totaled $20 billion, with 78% allocated to upstream activities, emphasizing its commitment to exploration and production growth, particularly internationally.
  • 3Worldwide oil-equivalent production averaged 2.62 million barrels per day, with key developments including progress on major deepwater projects in the Gulf of Mexico and significant LNG project milestones in Angola and Australia.
  • 4Downstream operations saw increased income, especially in international segments, partly due to asset sales and improved refining margins.
  • 5The company increased its quarterly common stock dividend by 11.5% and approved a $15 billion stock repurchase program, underscoring a strong return of capital to shareholders.
  • 6Chevron continued to invest in emerging energy technologies and renewable energy, indicating a forward-looking strategy beyond traditional fossil fuels.

Frequently Asked Questions

Chevron's primary revenue drivers in 2007 were its upstream (exploration and production) operations, significantly boosted by higher global prices for crude oil and natural gas. Downstream operations, particularly refining and marketing, also contributed substantially to revenue, with international segments showing strong performance.

Chevron invested $20 billion in capital and exploratory expenditures in 2007, with a strong emphasis on upstream activities (78% of total). This allocation reflects its strategy to grow profitably in core areas, build new legacy positions, and commercialize its natural gas resources globally, including significant investments in major development projects worldwide.

Chevron demonstrated a strong commitment to shareholder returns in 2007 by increasing its quarterly common stock dividend by 11.5% and initiating a substantial $15 billion stock repurchase program. This reflects the company's financial strength and confidence in its ability to generate consistent cash flow.

Key upstream achievements included progress on major deepwater projects like Tahiti and Blind Faith in the Gulf of Mexico, the final investment decision for the Angola LNG project, and environmental approvals for the Gorgon LNG project in Australia. The company also saw production start-ups in Bangladesh and continued development activities across its global portfolio.