Summary
Chevron Corporation's 2016 Form 10-K, filed in February 2017, provides a comprehensive overview of its integrated energy and chemicals operations. The report highlights the company's strategic focus on delivering industry-leading results and superior shareholder value, with distinct strategies for both upstream (exploration, development, and production of oil and gas) and downstream (refining, marketing, and chemicals) segments. In 2016, Chevron navigated a challenging commodity price environment, as discussed in the risk factors, but continued to invest in significant long-term projects across its global portfolio. The company's upstream operations are geographically diverse, with substantial reserves located in Kazakhstan, Australia, and the United States. Production levels in 2016 saw a slight decrease compared to 2015, influenced by factors like asset sales and field declines, though growth was projected for 2017. Downstream operations maintained strong capacity utilization, with ongoing modernization efforts at U.S. refineries and strategic investments in international joint ventures. The company also emphasized its commitment to safety, environmental protection, and risk management throughout its extensive operations.
Financial Highlights
49 data points| Revenue | $110.22B |
| Cost of Revenue | $59.32B |
| Gross Profit | $50.89B |
| R&D Expenses | $476.00M |
| SG&A Expenses | $4.30B |
| Operating Expenses | $116.63B |
| Interest Expense | $201.00M |
| Net Income | -$497.00M |
| EPS (Basic) | $-0.27 |
| EPS (Diluted) | $-0.27 |
| Shares Outstanding (Basic) | 1.87B |
| Shares Outstanding (Diluted) | 1.87B |
Key Highlights
- 1Chevron's upstream strategy aims for industry-leading returns, focusing on high-value resource opportunities. Downstream strategy targets earnings growth and targeted investments.
- 2In 2016, net oil-equivalent production was 2.594 million barrels per day, a 1% decrease from 2015, impacted by field declines and asset sales, but a 4-9% growth was projected for 2017.
- 3The company's proved reserves at the end of 2016 were 11,122 million barrels of oil equivalent, with 23% in Kazakhstan, 20% in Australia, and 18% in the United States.
- 4Chevron's refining network processed nearly 1.8 million barrels of crude oil per day in 2016 with an average capacity utilization of 92%.
- 5The company is actively managing risks, including commodity price volatility, operational disruptions, cybersecurity threats, and regulatory changes related to environmental protection and greenhouse gas emissions.
- 6Significant development projects are underway globally, including the Jack/St. Malo, Tahiti, Gorgon, and Wheatstone projects, aimed at future production growth.
- 7Chevron is divesting select assets in 2017, including properties in the U.S. midcontinent and shale assets in Michigan, while also pursuing divestment of additional properties and shelf assets.