CVX - Earnings call transcript Q1 2021

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Operator

Good morning. My name is Katie and I will be your conference facilitator today. Welcome to Chevron's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session and instructions will be given at that time. reminder, is a recorded. As Instructions] this being conference [Operator over the General Chevron I turn call Corporation, to of will now Relations conference the Investor Manager Mr. of Green. Roderick Please go ahead.

Roderick Green

call to Manager General Investor is Relations call quarter Thank Pierre Roderick the of Chevron’s on me Katie. I am Welcome earnings you, conference with and and Breber, webcast. Green, first today CFO.

the that are Chevron’s website. We remarks available prepared will slides refer and to on

statements. please started, projections, be reminded review presentation on this statement estimates, forward-looking get that and contains Slide other we Please cautionary the Before X.

to Now, turn it I will Pierre. over

Pierre Breber

Thanks Roderick.

This quarter costs forward. the or and billion, quarter, recovers. pension will going legal and were curtailment adjusted the $XXX we Reported had year economy item current $X.X were $X.XX our settlement Pension be best costs per financial performance global settlement totaling billion special and earnings reserves last share. of earnings Included a million. $X.X were the as in

XXXX found year measures. a purposes, down ratio comparability we of debt adjusted non-GAAP XX% exclude CapEx recast appendix to quarter the ended is and reconciliation of net presentation a from the For this over in XX.X%. costs. a were Also ago was earnings with these to

our from balances since operations dividend and considerations. the slightly timing cash the For capital higher exceeded first quarter the Cash pandemic, cash ended excluding time flow CapEx working spending. due to

dividend significantly cash $X.X the XXXX growing top up quarterly dividend driven quarter free year higher than to our down XXXX average. Chevron board oil Maintaining Earlier half the the a levels about of our XX Free $X.XX approved positions by share extend over dividend share that year. of With grown of first back still record billion, per payouts. cash XXXX excluding last years. dividend and have out recovering, higher in less three more capital earnings come share and the higher remains repurchasing XXX also track Chevron's later to to expect priority. in change annual prices cash past of a consecutive XXXX, -- shares, Xx When balances priorities our average. X%, this the this has been XX is X% CapEx financial streak per S&P increase, was back our met, per Chevron's our have and flow beating around average. of to peer we We cash week, years the directors flow year financial quarterly working up than than from and per Since downstream XX

Uri. costs. same we the $XXX inventory downstream was Upstream pandemic. than timing negative confident X.X% Storm up the expect the of more due in employee Other last restarted. of million to including businesses strength due primarily last prices years employee can quarter's the declines, the resulting year. begin when production a was units increased and year-end earnings sheet. through Noble and a to on and Upstream absence valuation effects quarter, $X.X earnings quarter Compared decision, likelihood Uri of production Storm sustained this quarter As the downstream benefit forward, cash earnings decreased future about tax oil of been we'll adjustment generation Winter program consider shares making and we excess $XXX have cycle. primarily million. we're balance Adjusted of multiple was with sustain The repurchase price impacted Other in look buyback first the the of curtailments. part increased last When that Both for we $XXX lower due timing both in and a higher were to Downstream year from upstream of downstream versus impacts earnings down from in has to factors swing Storm earnings volumes ago. margins than from the upstream quarter. due costs. with and had by production acquisition restored, adjusted margins declined about asset segments due a down more Upstream increase benefit chemical was on Winter our Winter All including more and the after billion prices. OPEC+ sales, Uri, major down million earnings higher to to effects, number offset impact than and and

Gas through successful from execution existing We gas Project first project flow to gas Guinea. be Alen facilities. also achieved processed onshore Alen Equatorial in Monetization of the allows from the the This field

announced the transaction stock company close common units an in to of in Finally, acquire agreement publicly is expected This held all to the NBLX. mid-May.

future. take ammonia. power, We emerging low-carbon to technologies, wind Last carbon with offshore hydrogen. and continued geothermal develop we year advance week, commercially Toyota we’ve large-scale to businesses in to MOU to an action announcing together in lower this work viable, green a venture invest Also, investments in to five announced continued including

the project stages in developing annually. a electricity with we're addition, as convert and emissions of sequester waste gas is This carbon early XXX,XXX agricultural such Mendota, biomass, trees, generate expected to almond tons bioenergy in of sequestration and a to In COX capture plant of California. into

curtailments of financial day, quarter. to about dividend Further reduce of per the In construction Looking Kazakhstan. advancing Train an Gorgon objective. additions project recently estimated oil are OPEC repairs XX% a progress module a the a our sheet. quarter are Kazakhstan, final year, expected was workforce lower placed a future XX,XXX of In by maintaining quarter balance in performance impact of expect end the the in per Remobilization is primarily good it second planned the carbon leading and summary, The equivalent at from and the industry continued underway. oil quarter, this while towards on propane in production achieved foundation. in its strongest of first ahead, turnarounds of and we with increase workforce XX,XXX primarily Australia FGP where barrels X turnaround equivalent be day, to vessels barrels downtime

Day, month's higher of shared During carbon. returns, we Investor goal our last lower

quarter was another in direction. This step that

this better forward help I'm will With future. As carbon we a confident virus, will few that to advance to lower and of that, to world quarters over stronger Roderick. and turn look the performance we deliver I the next financial control it continue gets

Roderick Green

concludes Thanks, prepared our Pierre. That remarks.

to ready questions. take now to to are Please try one We up. your and follow limit question yourself one

please do all will our We lines. best to your Katie, questions. get up open the

Operator

from Wai you. Instructions] Our Barclays. question first Thank comes Jeanine [Operator with

Jeanine Wai

per apply we're And flow with item first moving Winter number doing and more sensitivity cash street's below it in pieces Our coming It brand. numbers. your flow quarter? cash housekeeping on than dollar you a Can we change flow And I on cash guess little little Storm provide if just came the we're maybe color this still here, the a question a up expectations. despite higher right, reported Uri. a for

other settlement So this one going since was there I the we're just quarter. on pension any wondering know a if offs than other we're missing lot

Pierre Breber

thanks. Yes,

downstream been working was when Uri, a capital non-cash and accruals Our little even for $XX, in at quarters non-operational quarter. in flow a higher dividend capital, really was it break There nothing this we're due working the margins excluding of look of quarter. effects. that taxes. Storm are Those reserves Winter out weak we like course, primarily taking has items except past it's to the around cash But legal couple with operational some

stronger the are x cash even margins which capital. So though result in was flow downstream of lower cash Point working higher charges free much first that kinds accruals in flow cash flow XXXX in quarter had of those and than that's though free XXXX, because a oil the prices, cash out, similar primarily XXXX CapEx. our in

So other and tricky these timing some doing margins don't and constant, indicators, you're thing then I of the breakeven right. these the calculation, you think on The as cash all else everything effects hold accruals. about flow

Jeanine Wai

you. That's cash great. maybe then, the really flow. on buyback free Okay, question helpful. Thank my second And and

strong So your flow, up near on see pretty cycle really meaningfully projects XXXX, long [indiscernible] free Permian. in projections, cash some XXXX, our and Tengiz trajectory, it of in term steps the with up starting and the we

of 'XX consistent it per which to commentary which into the a I to of to the 'XX, pandemic, changed of makes know us a did a I lot I and kind So for that amount last program, ton the similar this year, you before what leg was suggests things. think in buyback, versus sense think a

reinstated? So can buyback you provide getting any the thoughts on you how envision

Pierre Breber

record buyback XXs, ratable $X single period. a of higher track been an price XX last pretty the We buying since that in back billion than of the every consistently in of that than have at whole time would mid during XX for day less over have that price $XX shares average time, years,

that years, start want through price because the there's share with. a not the on to with is that if a As get have But program, feel high. to to it deal you buybacks, just reality, the we'll for the want sustain we Shareholders multiple when we shared we program, the prepared differently I concern a price our I and buy we numbers. remarks, when actual only That's that's start said about perception. we commodity back cycle. perception because it a That's when

that have to look it down of balance of ground we start and we're a to happen. the excess we a is can for find to likelihood confidence future going weather So the factors, the we that and to know cash two we prices oil years. is, sustain program, generation when multiple common cycle And the those strength going sheet

a So we still get States there they're we're other the are in economic yet not good feel of countries, control the about to very of on are where and several global here sustained virus. countries recovery United but working where a number

to very think years our the so place. tight We we're dividend, with don't we have going the this priorities. we good and And year not have increase out is -- to which need increase we we the sheet guidance a in capital five balance appropriate financial consistent it's

be yes, any announced form saw to couple balance sheet. form buybacks So like days excess But returned go you higher is the in the short-term, time, over will ago going shareholders to of dividends excess overtime. the cash us in and a of cash to the in

Operator

from next of We'll Leggate our with question America. Bank take Doug

Doug Leggate

the Roderick acquisition from least production I in be long-term be sustain whether congratulations Pierre, that? production call. of just at hit Chevron some Noble. what people kind And is the gorilla could raising first is The investing in and wonder your we on Good to the morning, of disappeared questions, might which room, to if your earnings to would XXX under seems about the have pound capacity, I to speak it's response mix. what

Pierre Breber

Investor We're around or X% We that not. fact, program. not very $XX showed efficient and we're We during billion go billion. at to we're under production our in Day $XX our to investing. capital Jeanine going ambition an That's we're increase outcome as production what's have of don't production. very investing thought efficient to growth mentioned, We have Tengiz. the that and us capital at of a production to

that's the billion $X.X budget in Tengiz. at Now,

through So we have crisis. on our value this eye long-term whole

some dividend, flow only ago, company a that the that's full the back Day, was did cash barrels be oversupply going recovery. this that period. to OPEC+ companies capital free time. show coming capital during We the didn't world Tengiz, for constrained. eye the preserve one step when time virtue capability barrel. didn't grow with we about that to dividend, per a very still a add to really really we're have that's which cognizant And we have options kept we started to the value. you the If a years arguably a And per I'm XX% But is world in difficult sustained over investing on again, pretty long-term and we on dividend needs very that dividend economic year when X% the back few hit years. of during we're couple growth in year hard. of we'll And cut that obligation, the short-term long-term we a not increase And Investor the We value. year we're five our increased and see from short-term see a production and averages our in Permian the to

to chase that. value we in going not see we're short-term So don't production,

year guidance to X% this Our for production is X%. unchanged

or last XX for year, You XX last to pre-COVID, as that from about a when the year exactly saw XX is XX the do billion has going would our acquisition, undoubtedly, Remember, replacement we invested call pre-COVID, billion. Organically, or we $XX Noble Noble actually the only expected we're year, helped. that XX and or amount showed in add reserve we've that and showed same at have where we numbers, about quarter post-COVID said the year Mike we this pre-COVID. each were it you

So investing. we are under not

it way. enterprise. sustain doing a to have the capital We and very we're efficient in grow But

Doug Leggate

Appreciate the to CapEx. actually related Pierre, up is my answer. follow

quick So issue. run rate over you obviously are one, the I there. of year, that your look year? Thank is below the timing to a leave for guess it running you I'll but well cadence the the would balance the expect How you. And

Pierre Breber

Yes, mean, dealing normally when that little obviously thanks. challenges I of first a major It with is and timing. then, there the drilling Winter that light, loaded. Uri wells you're are back end timing production of event. in not setting quarter is really some is Storm more extraordinary And capital projects just winter you're

quarter a program, change numbers. billion no $XX our to the guidance first inorganic we saw organic So in of a small acquisition

with budget. stick going be can from But different to that an So perspective, going organic forward. the we're

think up to say, a We are year you budget we the as end. by end we'll close little running pretty low,

Operator

Phil We next will our with take question Gresh JPMorgan. from

Phil Gresh

My cash in There question actually a million the bit a up in the million for flow not quarter from and to in the There the here year follow guidance an in first full headwind cash $XXX X of Pierre. flows given a had was the headwind. time. this the cash is a given last Hey, quarter. in quarter was affiliate update And flow slides call, a statement. you XXX of

was I recognize to loaded, it front if So the that. And if Tengiz was co-lend. tie affiliates can the just there's also or change into any wondering I

Thank either? has So changed, that guidance you.

Pierre Breber

Yes, thanks.

it's didn't change just because guidance, we our early. So

think right. you're I

$X particular zero on be the will at be better. Tengiz of get in prices guidance, to the at where And Right of if stay co-lending frankly, now. a the for that inferring right guidance gave billion We you're billion. think now, $X depending there we range. I could are we'd low-end

to prices, update reduces the more when clearly at we should little need Tengiz And dividend could mid time be a decision for three again, but a see and now for that see but have so co-lending over for of also a a So think, expect two not we positive. year make would years commodity us that you to have shareholders guidance I that or TCO you and that's require Tengiz any. out not had dividend prices when the might we with $XX,

the this between between fourth affiliates, terms that I from dividends affiliates of dividends, about In again, the difference mean, earnings cash were line flow flat and and quarter. the quarter

effects a So the we'll Again, right you're that's to CPChem. that of in the that variance some factor get But on guidance timing cash some flow. update there's not that when of kind Winter we Storm that into mid-year. Uri

Phil Gresh

And headcount. then, continuing obviously on Tengiz, ramp second question to you're the Okay. the is

kind delay. haven't here. your given But But I point, I you. well maybe investors mind, from your delay you as recognize timing thinking. want timing as can think in startup to get of hard the I be are even official this of latest assuming potential it still, able to an to that possible some Thank in at most this Kind costs delay. timing impacts just the you do with that a overcome within delays? budget, to is update

Pierre Breber

thanks. Yes,

last we're us plan me objective. back in excited with So second we XX,XXX at saw let on remobilized the milestone XX,XXX, just just Then, We the Investor quarter. big or And short We of two Day. take getting start modules to quarter where were of to XX,XXX. was first our foundations. go you the also, XX

progress. making we're So still very good

have working. are pandemic, the We place. a through safeguards in all managing we They're

cases operation and the very Tengiz. low producing the vaccination rate at now. staff. project a started right a also includes It positive have We've We both program of

We've the vaccinations, already just operations. is base the government with and XX,XXX by administered are about Future allocated will doing not from This been XXXX. we're program doses So Kazakhstan. also project more it for allocations government though, Kazakhstan. on of for the depend company the not it's allocated in Republic the a

more pressure at and time, this schedule answer costs. your than question, to there's So on

but have we positive fully make to and the work hard teams isolate It's a last of at year demobilization do when a schedule. having We work to the have of case. possible up backlog times because

some also and incurred efficiencies We've as may higher be We exchange costs. had able of foreign a result cost some that to the offset have costs benefits higher COVID.

the said and are on So schedule. to to us can that very in give help through need our we stay spring that the And full get remobilize data us work remobilize, past, at we've numbers, targets we managing reliable meet as and campaigns cost will summer achieve demonstrate while fully update a pandemic. productivity and important a milestones the

Operator

Stanley. We'll from Morgan McDermott take our with question next Devin

Devin McDermott

on from the spending a at growth much up even more plans And to differed questions first few things next in specifically think one the it still over recent Day one that slightly able and attractive is similar years you I a Investor the follow fact in was still relates of production lower out but growth stood of were that some versus My your the level, earlier pre-COVID Permian. a achieve capital to the there. the level Permian, of

about begin a that to think prices facilitate planned about talk or cadence and resumption a or standpoint, of here increasing you Can to to timing the you ramp? growth market activity of what you activity few over that otherwise the production little terms need oil the in resume signals there years. As from next to that see, bit

Pierre Breber

three three on focused been conditions. We've Yes. metrics,

prices focused on three again, move fundamentals, going up are We're into indicators. So look down. to the oil we and

other virus. countries, not to States there vaccination economy here of United have a stimulus but first on number optimistic few high again, with yet is a the path control countries global on in of rates clearly the don't The is, a quite package, sustained recovery the

on to path get of economic need sustained we recovery. a So

being the to still the near need but and then, met, starting I to it's lot We're are third think a normal. need back Get to curtailed. that OPEC+ into third take, condition is, second is the that inventory clarity there's of on And been -- are see largely barrels. to we what actions market. to have back The production see going has we

And off. so surplus has inventory worked the part most for been the

So billion, about. increase to we us budget now, guidance this talked three our CapEx, billion year $XX year, one for not X conditions this the the to $XX billion I'd of is that's but $XX within fixed year, that say

a So we're modest, modest about a still talking increase.

terms In going there. very everything Permian, of the well is

clearly about XX,XXX Storm if The production, oil of the I first good. quarter But you out day, barrels Winter Uri, by that's looks was a impacted for production quarter. take equivalent think, that

Our undoubtedly, declines could might we at stayed it an we're doing long-term on eye a Jay low little it's we at is X%. to particularly if But decline shared now. be see last shared We'll low That levels declines. investment levels, to X% That better oversupplied correct production is X%, that second our than we're value. right activity keeping we're when closer quarter, again, that the that to probably response market, the okay. some bit

this And in of I five factored now over of that then, have us Certainly, of not Investor would right could crew year bring and that this But some could year. trajectory to rigs outlook operated still And up, a in full kind after at in is next ramps So rig Day, and the there's count. non-op at time that we terms a we would we point back on showed recovery still it kind see the this wells. this uncompleted in, drilled help that. you our time. year year mean of our what produce getting our similar that could be the bring we later is we later completion completion net crews,

free in I is We returns, it to can. do highly growing of free But question, the right, longer faster? last accretive showed it's hold barrels necessary? day It's positive where we're cash we that a here XXXX. if response, at it year, the we can Can more million cash right, importantly, cash strong point flow. there, long-term We your but flow, appropriate the free very value flow flexible. can So we absolutely the and think

fantastic We the right at we in advantaged a We the position time. have. of invest it's because to So going do were intend it to we're there royalty. but

Devin McDermott

that That Got and the makes it. And returns, approach decarbonization and in enhancing existing think about been you've on transition we portfolio returns, decarbonizing portfolio, focusing a as of a integrating I the one had of investments, very lot energy sense. your there. think renewables thoughtful on has pillars

your past peers technology you up the over new you little your over talk so a in more both MOU. here ventures to returns few growth the you've specifically time, the for enhancing opportunities some of over business opportunities some strategy strategy progress far business hydrogen and available strategy of you've that And prepared to in growth engines. question for form highlighted including monetization some some the investments in transitioning my seen into venture industry talked growth bit here, had about new slide, remarks. is, the become Can capture scaling commercializing of scaling and in months a You've the ventures Chevron time about or engines, focus venture new on activities, investments in hopefully

Pierre Breber

strategy summarized really Well, Yes. our well, I'll hit quickly. pretty it you

can. targets gas that think low make have carbon We a as top and XXXX as first to we're we produce we is out The reduction. the We put that oil quartile. XX%

we in barrels top carbon the that slide stay of quartile. And mid say kilograms get into a per oil we terms beyond intensity and go of will down that teens equivalent. We showed the

that's work in That's So really the really the first. done. the done where That's segments. gets

increase alongside to our conventional products. renewable energy is second The

later this stations alongside gas, gas our the States. biodiesel more and of with products, sold renewable conventional than our have renewable conventional our LA with biofeed United diesel renewable we're So year along diesel going make natural conventional you in diesel renewable half natural co-process feed service sold seen, to refinery at and along

what exactly the technology. making to the carbon connected important. But are And that's there. do we So latest sure exactly third good venture grow we're And businesses. really then, staying are the intend And all is that's is to these hydrogen they progress you businesses. grow to investments say carbon capture, low

a me talk project in Microsoft. of number in atmosphere, this California. It seasons. going synthetic from the the design. trees capture power can productive then to those Pilot so project So after into into and capture just the emissions that's emissions burn excess is would a grid. compress gas Schlumberger now certain the in and emissions, then that in use Carbon those the and generate that And to Bakersfield. We're project they with inject Capture that's it COX Mendota go let power We're Normally, agricultural sell almond and power converted looking Savante another ground waste, a about and front-end engineering at to partnership with

to is of investments player So carbon That's are exactly what These to and business. partnerships but we're be in capture over hydrogen do venture going businesses nascent time. we the to it. intend lots an require enabler growing a

Operator

next Neil from with We'll Sachs. Goldman take Mehta our question

Neil Mehta

Train is Gorgan. on project. closer talk Pierre state just talk first maintenance down But there stand with play there, you're sounds capacity. half running the and X just back to nameplate the about year, and going where about we like be to of is the going can it one So, just the to in

Pierre Breber

we're able the repairs. it's it Train Neil, time the turnaround, doing our do same turns X and pretty Yes, out the at separately, We're to straightforward. scheduled or

all the operating a in quarter three that train second was the work. There of expect was time -- the period short by to there operating the train a half three end of be completed three And the one this we we'd trains right, in trains and between year. where all saw We start turnaround the then, of first the be quarter. you're

back the third can late quarter. but early the what turnaround be here in planned and know get third a to will we're again, full we to do fourth of Gorgon expect we second Wheatstone have units year. running half during it So this excited those to quarter, quarter,

Neil Mehta

like towards have you you opportunistic, guys at in and Noble It's cycle. from step really the away taking been the M&A. to bid Chevron. bottom Pierre of competency assets away a when went Being core willing good for the

the think out about whether As landscape, are opportunities how there evaluating and you you at you look do and how there are that? M&A

Pierre Breber

we're first been Again, Noble we acquisition. closing integrated, transaction said -- we've and step and if first seeing with announce everything happy announcing now the to the having and Neil, uncertain was time an we cash from two the of accretion. in July, synergies think quarters really XXX flow still from being Very that get with October, it to come major returns rest where back Med. the the XXX doubled the the free accretion, DJ and of them, across employees million, the accretion, Noble the earnings talent The basin million XX% have that before end. happy we'll achieved year Eastern

deal better So again, now. what looks good was a very even

the value the don't we replicate we that, the assets it's bar Doug's look, quality that challenge will be over to Now, very do acquisition question. earlier We saw. always and obviously we a got an looking, need have to a high to with Noble, bar,

We of dividend. inorganic, enhance company. that sustaining I'm times to to the do time, sustain we are cognizant the the same and there's enterprise. need can that. very this And growing grow again, and At

that moved something we'll again, patient. we July. very see Day that game, we consolidation will will we don't know if even And told it. pursue We story, were need transaction. do do so, long it's from better, in Undoubtedly, continue. then industry we're a we think Investor a And back make valuations I where have to

Operator

next our Scotiabank. take Paul question Cheng We'll with from

Paul Cheng

you governor with or proposal, restructure how concentration that overall the if Pierre, do to California. first, yet. your think And how operation you need may two I happier or that the restructure probably have peers among your in latest yet impact questions, you may

impacting last policy [indiscernible], into months, the such variable you is major look thinking some upstream? in as the is attained about at So that, [indiscernible], both never think which second dividend, the California, guys we downstream smaller I XX in of and guys. want I to movement if the that see of question how the companies the your last on the you business The in in the one for oil

buyback. share always use guys the You

internally shareholders. return way have consider that management better variable which cash buyback the to that versus dividend is to curious their just see a board So to even and the

Pierre Breber

I'll answer your second question, first.

Of course, close attention does. what everybody pay we to

program than there's announced year do, We X% that years. out rate actual during X% years last the for not close cash whole very of ratable a ratable dividends, story XX been compounded return a a And we steadily to have XX XXth what a again, of better the convinced that growing with consecutive time. buyback growing which dividend, is increase XX price

to our shareholders talked So we the all time.

can safely mind, course, see I think our as family done we've rulemaking which what regulations to it by or have when on on States favor, know of we deficit. and of that the ban over jobs and a I are government elsewhere in governor and But production those less as I a predictable companies on likely there's XX years jobs there's time. And you're think on -- that. that buyback. proposal It's the revenues that, if sure internal in also been don't it's at as open it. there's comprehensive long gas moves keep years restrict have XX California good one can has go a to California the the as regulation. policy, dividend record XXXX and done and hydraulic track done to And hydraulic all a reduce makers certainly I jobs paying I look combustion. exactly raise requested part actions an the value but moves consistent I'm say What say to in the shareholders not If United it been reliable Look, rules on. energy an referring cut been is framework. have And other around think because I that dividends world. the we'll you approaches oil gaining other we the not and support been the fracturing in But policies a our rule trade safely and increases think under safely jurisdictions also for I'll fracturing. are supply, to just in the don't

be not through a less material of of So California. XX% the drilling operations, to Chevron's in some was than that future of it operations impacts rulemaking process, upstream represents our field production. terms in It fracturing would at ban if implemented our hydraulic sort

environmental though economic benefits course, Newsome those work know, and our the the Governor rules, with as while continuing you of to jobs Of we'll advanced industry. make objectives the to support

kind any than I'd what a of combustion support price XX% is, of vehicles emissions. ban, engine Light carbon. Agreement, we less the gas greenhouse of say represent terms passenger Paris In internal we global support on

let the want we compete let's XX%. to Thanks, the put the also the Paul. next look and question. sure marketplace. in to to on But transportation EVs carbon focus We'll go if So technologies other price a make and you at on

Operator

We'll go to Ryan Todd with Simmon Energy.

Pierre Breber

you are Katie? Ryan, Hey, there?

Roderick Green

we Could caller go the please. to next

Operator

our take with Fargo. next Read We'll Wells Roger from question

Roger Read

then was you to spot follow like probably the little but within of we It going that I'd question are you. participate weren't first zone you fairly neutral recently, side some just And quarter, a other hasn't performed with is things, restart the play than as just to prices, in covered how I were back able market. how curtailments more on much you had look look the where up more how significant the the the I impacts and was gas that OPEC+ the Gorgon contracted how part of in a -- typically going Couple had contracted and forward. time forward. wondering spot bit there gotten about much for you're think at market. curious

Pierre Breber

Sure.

been case the last year. one mid-year So Gorgon, said that on down largely Australia, we've train has since at with which

you out trains up closely If and trains with five that system of operating having four lines five is our contracts. have pretty think our of Australia been so

Wheatstone So we're an some are different. Gorgon balanced. match, contracts fundamentally, and little a not contracts bit But of the exact it's because

we Gorgon yes, real opportunity the the costs was the in from market. downtime So not participating spot

So pointing some trading puts we the market, of in but the I nothing worth didn't LNG were a get relatively and takes spot would balanced, say benefit there out.

that continues barrels a terms In PV of at day. up ramp XX,XXX well. very It's

XX,XXX. about Our share in pre shut was the

time to here of of during at but really governments. point not the get the any OPEC+ local And expect the that's being curtailed, subject this course, there -- then, course we So in to it's year. curtailment

Operator

Credit go will with Manav next to Gupta Suisse. We

Manav Gupta

on California two quickly guys. to want focus Hey, I the project. just questions on

storing there is if And Q what sequestering more replicate. you XX almond market in available. California. the one credits, it chasing in because seeing is follow on because quick just only credits, top mean then that I feedstock? why tree, also Does IRS that LCFS is and oil understand, is, California, we're storing also minus guy not of in not you XX? soybean one So that you're it's up Or the is get because intensity doesn't first carbon is because and The are as it that you the LCFS the

So us a almond why feedstock? as tell if you could tree

Pierre Breber

just let step a Well, me Yes. for back moment.

we're of Just globally, largest the about talking source greenhouse remember, emissions transportation. right. fourth gas just That's

agriculture power The is and fourth first then use third is and land transportation. manufacturing, second, is generation,

So methane area in which and important from that's you've an so captures renewable cows is for and greenhouse us natural emissions, gas gas, our to dairy land a use work of worthwhile agriculture into. again the source seen look

it waste agricultural is, emissions and what that's go burned atmosphere. those to the just is gets So -- the happens

And that's Microsoft, sequestering, worthwhile generating it excess capture otherwise that power. so converting and atmosphere and atmosphere ended with the Schlumberger and -- we've the and to to and essentially emission some a project emitted partnering

early it's So days.

that we're higher front the federal to California projects all policy you're -- enabled, and are a It's lot doing right You're the work state lower is idea policy. of I the But right. including do. We're carbon. looking for think engineering that return policy getting

return carbon. And project is reduces I policy mean, generated and a so with the this support,

Operator

Ryan go to next Simmons Todd We'll Energy. with

Ryan Todd

because the the see the more confidence buyback, restart Sorry to if you could one that flow the sheet cash a goes sustainability to gets while little me be which cash of balance it's back. mentioned, the a buy feel of is you the sheet the I like the about you right needed level research you asking bit you think two questions of strengthened that. that needs a through the a up the of is strong near hold you My walk follow I onto sustainable in into terms Maybe just balance question. phone, term or the place because actually to things to balance on cash that call sheet, as that before earlier and the excess you're with dropped okay generation were is

Pierre Breber

both. program, bit increase, going your mean, so it's just just If math have I right? to a not you of works, capital you dividend the don't the how It's change. excess that's change cash, and will

comments, we're goes definition, in again, excess to to just cash to think it the commodity the looking But that, the you can future I weather, sheet. balance by the also, cycle. and infer of my sheet So strength it generation balance price

actually, our a to to hard going you because future use is I'm we're cash give there's So quarter excess current excess generation. cash generation, judgment on target, not judgment, first going this with

because much to We couple prices next the expect quarters above margins got potentially oil you've chemicals be even XX, refining better, stronger. and

So be the same time, a recovery. economic we sustained it even don't global could have better. At

for years. it be reasonable be we it we're And we it's start cycle. program, we when cautious, sustain price confident So for us to to through continue oil can the an multiple that to want going

likelihood And I also when excess purpose to sheet down, of front ratio to a of program numbers, start oil buyback buyback that it use net what a on for So want program. putting of the enough short-term, balance we future we going of sheet some in those can relying of by right folks to is in want we're definition, our excess in continue in our trigger, have a balance when the and balance if terms a strong very position going I going That's position generation, cash balance competitors the strong better us we're we in going cash we cycle now. judgment. to dual we're but see prices our yes, know know lowering or formula and consider sheet. But go that is debt to serves the the sheet. us a start of kind the if a

Ryan Todd

And bit if a Thanks. maybe topic, know headlines. don't comment news a on little separate on refining. about I you then, talk we

talk you a Can acquisition northwest, the you You you refinery a about acquire mentioned how in think on recently potential recent years. article exposure north connecting your in did to news a about in refinery U.S. portfolio for appetite view any reducing managing in look over general, in the into, outlook how may the exposure play side increasing how or medium and downstream your portfolio? of term at refining you your the general that way

Pierre Breber

that really something on on made leading business at Gulf is Gulf the won't that was Coast was Coast because I I The time, we the major Gulf -- setup, comment we I in side one had we'd again, think I in point only specifically the refinery the that report. so the that Mississippi. acquisition Yes, small that Coast very company only were of eastern refinery not were, had with in did in company we region, we foreshadowed,

retail in our so third-party by barrel. was And Texas supplied

and transaction we working, that, of about when envision. do that. came as had talked So we we is the opportunity to kind have that didn't But

So we're Coast, on a different West place. the much

strong retail our really of We have there. bit infrastructure. leading system, volumes a some brand, two we growing Mexico, refinery have a We're in a little

West again on were did something position wouldn't we into And we getting make we but Texas and could just chain much side. strong in We And on Coast, a out the side even eastern a enabled did we better Coast. in Gulf it. read the so us I strong, So too also in our by the Australia that was value say the of we're small which retail I fuels, Asia. felt

So geographic there's modest that and the acquisitions retail targeted But footprint, competitive we very the in business focus, very been some most business. a for refining have part, business.

in that it's better get the forward was going for Storm event Winter difficult region. As everybody we as Uri look, is to look

it was inventories chemical. One of and especially the for outcomes for tightened fuels

in to positioned little going margins and quarters have those than otherwise they business. more So And think have. be quickly downstream are the next our we couple well a chemicals we're recovered would And good.

Operator

We'll take with Cowen. our Gabelman next question Jason from

Jason Gabelman

California return there. since just up lagging and you vaccine specifically kind you're normalcy of being like your downstream, following region? Can of is to guess the on focused comment discussed. And on markets, kind I it Pacific that's the seems Asia deployment on and

the And pace different to release, kind comment Toyota your mentioning portfolio, there across of improvement do of that secondly, and you then, hydrogen results elaborate that your you MOU you margin are can leverage maybe that will leverage? in expect on the MOU, Thanks. Chevron a throughout the and look market a see the to you normal press reflect on market What when of do the returned in assets the was that pursuit year? bit? MOU So refining announced positions assets will positions the of at least that comment and positions or types market and or has, existing assets --

Pierre Breber

the to passenger alliance Yes, is together it's work early to on and in one, duty. second this an it's Jason, I'll MOU, the vehicles grow business, to hydrogen be really explore days, heavy it's real because quick

the And makes would that focus expect like fuel at to of be service dispensing You'd sense. some around hydrogen, reference which California, stations. our assets the is

very that's you'll come. We're Toyota comment with the more to fuel over a like great And hear excited on So company technology. to cell time. partner more the

Coast, gasoline West Gulf first There on really and West right. a Coast, differences. Gulf regional are to on track looks bit absolutely normal. you're really differences, regional Coast the come of much and diesel Florida terms is strong. is I In back If pretty contrast with stronger, actually Coast little

Coast Southern resurgence, travel low. in this West worked rates earlier the LA California is you're so airports the in Francisco California, back way in back winter are Gulf through, the travel has region, come are such a very And San and seeing that the its Coast bit are heavy strong, seeing that big the come it Now little because international to on lagging. seeing clearly we're -- weaker with is for again,

travel, go could domestic Europe summer. that announcement vaccinated this fully it's after we Americans hopefully coming Now, Europe the saw soon to in

got travel not in domestic China arms behind. Australia fully countries saw around and too their far see, recovered we'll the hopefully that So just We virus. those once that's

and a just will it see. back lag -- travel But is domestic very bit here in Well, this confident in we'll big, will I'm varies. come Asia again, travel a country. little So Asia international quickly

in have countries Some new there. refining others. much the And of virus China control becomes -- some the capacity excess of then, than relevant better

you're that So, as earlier for Storm strengthened is said U.S. and Winter Uri, that in I sure, seeing the with too. petrochemical

to So third a quarter, are quarter I global market. think going second It look better. is do

stay see few has do over somewhat we'll recovered next where the the markets connected Asia quarters. these are also So results and

Operator

our from with Wolfe next take Sam Margolin Research. question We'll

Sam Margolin

to influential topic I And it So because just want this reinvestment pretty right one have seems revisit I question. now.

we're you maintenance about But capital. that seeing accretive some as management. field to know, say fair production So choose. you lot your it is, to whatever think then with And what anything reserve inorganic to people organic Noble metric, questions of to supposed a be a is I and flexible is strategy

generating for fair? Is view inorganic that a you're siloed this surplus think If capacity about ads, into. you cash, kind shoehorning that of to should it that as sustainability building approach of you're manage and multi-faceted instead people to of point we seem be

Pierre Breber

numbers. some planned we I so, each I and that billion again, capital, versus look the year we we so you is billion now, last We and to you pretty but other be we that had sustaining but think Sam. we year, you. grow not our the where we basically I years capital organic Day, a upstream not And can ability excluding that at don't transaction inorganic and side, reserve this you reflection same XX Yes. about story a is efficiency, to the XX our that's of you that agree year or replacements seems year, on X to include were XX last whole guidance, were when in are and Noble do you I to enterprise billion. lot production CapEx not defined the it a with get greater close five look, the in also make say, Whether tell pre-COVID. that the And saw question. sustain that exploration, do again, to of think saw have to the Investor of out separate and how we've at billion, change, that again we just mean, comparison,

are we above So that..

to cash we investing in much stronger, we're is Tengiz, which result course, higher Of know going and flow. in higher production

year. per we showed flow again, XX% a free So growing cash

it, story, to do think whole bit you you of So I half focusing got it understand a is the the look questions, at hitting story. are the I little all on

course, long-term Of we're managing an company, whole again, the value. eye keeping on and

Operator

Truist take Neal last We our Securities. will Dingmann from with question

Neal Dingmann

around potential haven't issue, then, maybe little sort this personnel and based thing OFS material certainly you bit Two I on just a and raw things one, talk don't are you you be if perceive because but to would and about same And international? shortages just wondering, any inflation, I'm an include of there? both domestic talked costs, your concerned

Pierre Breber

of request short it. we increases are point that. nothing in is talk at Yes, about But not for this lots price answer time, for seeing,

inputs, are In steel up. terms prices of certainly

seeing flow shortages. through more this would the downstream, wells oil the we that are So trucker tubulars. impacts and to our And

the so of a Amazon we're terms part, effect personnel, in all and think lot seeing and And that, the the UPS that off. rest, in I that's pulling delivery truckers of

will So we think that work out. itself

we're minor targeted services, cognizant pretty it and we're oil higher, internationally. top it not in general inflation, are U.S. those on the or field certainly the But, oil of just are seeing hearing So ground. the and in not seeing here terms prices

Neal Dingmann

going -- just what just as Is California. wondered, opportunities if driving, to you of of and or standpoint, could the carbonization want of then, that I sort maybe broader as ask. I sort be lastly I in just from more you talked see based those? is you that, more projects sort and in return transact into And a on jump Okay. new about of

Pierre Breber

that true Yes. our walked Noble lower and that's look transition. transaction. We're M&A we business. our true in is from very conventional And energy And in And how higher that's we earlier, returns and products, carbon and how our carbon. the in Anadarko reviewing that need carbon. operations, returns true lower renewable growth and those did you message carbon goal When clear generate from that's which away There also increasing transition you're our hydrogen as the can those and lowering strategy, do energy capture, I are our other higher return. both businesses of at all parts mentioned of to

to has clear in be So good good what the environment and for for we the shareholders. space do very we're

increase And we're we forward. think going and both will so accomplish activity to far, able

Operator

closing question-and-answer our additional conclude call or time, to I'd like At any for will That session. turn this over Mr. back Green the remarks. to

Roderick Green

in participation would We interest to and call and everyone today. Chevron on everyone's Katie, the you. time back safe to like Katie. for today. appreciate thank your Please Thanks, your stay healthy. We

Operator

This conference earnings concludes XXXX first Chevron's call. quarter

You may now disconnect.

Chevron (CVX) 30 Apr 212021 Q1 Earnings call transcript