Chevron (CVX) 27 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Jake Spiering	executive
Michael Wirth	executive
Pierre Breber	executive
Roger Read	analyst
Joshua Silverstein	analyst
Neil Mehta	analyst
Devin McDermott	analyst
Biraj Borkhataria	analyst
Sam Margolin	analyst
Paul Cheng	analyst
John Royall	analyst
Douglas Leggate	analyst
Irene Himona	analyst
Jason Gabelman	analyst
Ryan Todd	analyst
Bob Brackett	analyst
Neal Dingmann	analyst
Alastair Syme	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the conference call over to General Manager of Investor Relations of Chevron Corporation, Mr. Spiering. Jake ahead. go Please

Jake Spiering

Welcome Webcast. Third Manager I'm Relations. Katie. Conference of XXXX Call and Jake to you, Quarter Chevron's Earnings Investor Thank Spiering, General

Chairman Pierre and call Our me Mike on with are the CFO, today. CEO, and Breber, Wirth;

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

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

turn it over to will Mike. I Now

Michael Wirth

the acknowledging Jake. our We're Middle want those in start war. tragic Thanks, loss hearts and the to East. by saddened life, the the I out by affected deeply by events to of go

continue We safe the the delivery of well-being of natural our and employees to gas. their and prioritize and families safety

definitive acquire Earlier Corporation. agreement to this announced into week, we Hess that Chevron a entered

first transaction XXXX, in the this to of look to the in close providing half forward expect future. updates we and We

Now turning to the third quarter.

safely storage a traditional carbon hydrogen billion We objective ROCE our consecutive energies acquiring continue returns in acquisition to and quarter XX% for than greater in and $X majority investing and higher make closing more delivering in than hub lower progress by by for to the to stake PDC sixth ninth consecutive returning deliver and the shareholders on in the and quarter new production Utah. energy a Energy green by

growing details And chevron.com. read earlier and this carbon encourage actions lower approach, our which progress report Change released and reducing the our Report, month, on everyone intensity new we businesses. Resilience available in carbon Climate to I

remains schedule. well, The ahead to base turnaround business results. The and full. was is of continues TCO, reservoir At performing planned the plant good completed deliver

in quarter. dividend fourth We expect a higher the

mechanical Project. achieved Future Growth has completion the TCO at

up cost begin the of conducted conversion now from to cost pressure expected in commissioning an to the the review. turnarounds. to X X% is within project Pressure to X%. Wellhead high XXXX first startup between and and and slower-than-expected ramp increase FGP XXXX production We Following first low field Management Project, major full is in which through is half of to we schedule progress, train Total to the half start expected pressure, and continue months. X forecast independent

in TCO is FGP of barrels per XXXX XXXX a greater equivalent expected heavier due reach XX,XXX fully forecasted XXX% be about in basis million lower to oil per a production ramps equivalent is to oil WPMP turnaround for planned barrels of XXXX and than TCO conversions. on day when than X to downtime day up. schedule

is down $X XXXX to at billion. billion Free $XX than prior from estimate. share cash in from be more flow Chevron's expected Brent, TCO about $X our

Our and reliable on start-up. and safe focus commissioning remains

over financials. it Pierre to turn to now discuss I'll the

Pierre Breber

earnings, Mike. We delivered flow and ROCE. with cash another Thanks, quarter strong

and $XX million Nigeria This of quarter's onetime special pension tax benefit million. items: results $XXX a settlement in costs of X included

Foreign currency million. $XXX measures. of presentation The reconciliation benefits non-GAAP this were appendix of contains a

quarter this operations CapEx for included in about PDC Organic $XXX after legacy August. closing million

the ending Our the digits. with remains net single in strong, debt ratio balance sheet a quarter

during restrictions enabled cash our $X Despite able repurchase over Another we to us quarter Chevron well all to in on financial PDC the solid of flow deliver priorities. shares. transaction, of were billion

above reduce cost ended $X higher to related our balances PDC's the Cash used what's Cash a quarter was to debt borrowing. billion, to near run little primarily businesses. needed

downstream favorable were items. cash recoveries offset primarily lower Adjusted and a by in swing upstream charges DD&A, effects realizations other exploration expenses lower billion tax discrete earnings effects. Higher and due and negative earnings the due last third timing margins. were decreased versus same Adjusted negative down quarter to earnings lower to Venezuela timing partly $X.X were Adjusted marketing quarter mainly and year. unfavorable

discrete prices and tax quarter, million. the charges upstream flat and by for unfavorable of Adjusted $XX the last earnings quarter. prices. were to in timing due as were X addition assets over were in DD&A both just roughly higher negative adjusted the legacy OpEx earnings part in months with and to effects higher due Compared offset were rise down volumes PDC

Adjusted lower down increased offset due effects. and timing refining downstream in by higher balances. line interest tax margins, partially unfavorable All other on to unfavorable income decreased primarily earnings items was cash with

Gorgon. Third turnaround quarter of production. a due was last at up stop quarter X production TCO by oil was primarily equivalent and months offset planned to This PDC over partly pit X% legacy at

excluding Permian, the due flat lower was production. with to legacy operated The X% production nonoperated quarter. Company down PDC, second was

oil Tamar. downtime of fourth Now looking largely includes anticipate ahead, to equivalent for our quarter dividends fourth for XX,XXX day affiliate be the and from approximately We turnarounds barrels per TCO. estimate quarter in

on we As withholding tax reminder, TCO recorded a XX% dividends. a

proxy to plus or minus Due XX% in share share fourth pursuant statement regulations. Hess, will to expects restricted timing the Hess with billion, be repurchases the be Chevron the mailing. to pending the SEC transaction primarily around definitive quarter repurchases $X of on depending

keeps in and Chevron strong strategy our well that that consistent, environment. clear value deliver any delivering a our actions summary, to With show shareholders In to remains performance we're and results. positioned

I'll Jake. it turn to that, back With

Jake Spiering

That concludes our prepared remarks.

take Katie, please We open lines. questions. are [Operator now the Instructions] ready your to

Operator

We'll Instructions] take Read [Operator with first Fargo. our Wells Roger from question

Roger Read

Yes. I upstream. we into could the was hoping dig international

of tax we and other in what the out, the quarter, Just were the a benefit this little called factors Nigeria. expecting than some short the were ones issue FX on what

Michael Wirth

a Pierre -- cover Yes, and and our of to lower and inventory model. costs, pretty rising tax there's lag Look, things some there's the recognize primarily pricing. LNG or your this Timing for some see reserves abandonment mix material we noncash effect with some was significant quarter let prices And I with in I'll effects a realizations little more in tough but and one charges then charges. this Roger. detail, legal other

a same if particular, and year timing it the prior to on the, current first really strengthening dynamics. comparisons significant On had last prices down the way period, cost think, last you period-to-period inventory significantly, whether coming prices then or and where you in the was were costs we quarter see inventory. quarter the where back in get on quarter had of deltas we similar some go pretty I 'XX, we period, And we

of So about anyway, and you upstream more upstream the a high particular. that's talk can international maybe on level Pierre, it. in little kind bit

Pierre Breber

Yes, it's Mike, Roger. what to, talked of you subset a

largest timing timing quarter effects effects, this So on the were the cargoes on water.

international So downstream. you'll in see that primarily upstream, the international

are effects in Timing X buckets.

You and mark-to-market, inventory. inventory have have on-land paper on-the-water you you then have

that in most it's on and are the really effect, that periods. cargoes cargoes water So drive over transit cross quarterly the of

talked what that's indicated Mike abandonment estimate. so is that. what as trajectory the And drives prices, Mike about of really

the and up So those depreciation, that in will upstream. show in we saw international

some pricing. see you LNG, in lag then And

mix saw saw cargoes liquid spot contract some and on cargoes And on also between effects. some the We mix LNG. side, we

in it's liftings how terms tax So types a of relative products, to discounts of are the trade of production jurisdictions, the Brent. in terms they bit where to of

items you with were could Roger, follow in any a and of international up, there number upstream. more cover Jake details. And So

Operator

We'll question... take our next

Michael Wirth

every Quarter ahead, now and again go -- Katie.

Operator

take next with our I Josh from apologize. UBS. Silverstein question We'll

Joshua Silverstein

Or TCO, that, that there project something that cash else $X higher there billion in you expect cost now that? flow Is the in versus so to mentioned delays? $X billion due had On XXXX, lower, previously. there? Or the is to $X that's billion just is you distributions the from around estimates driving lower be about

Michael Wirth

Yes.

said to So X% X%. Josh, there's going capital, more to we be some

and 'XX. more to severance think billion around share 'XX, than 'XX 'XX about probably a little weighted over So $X

Cash about X in flow at will total the billion the from $X.X $XX over be next operations due really the project. lower to by the Brent in years delay

in net XX,XXX to a equivalent about production in it's barrels each day So those years. of

$X.X So across of billion from in expect about the 'XX dividends share by 'XX and total, we be lower prior guidance. our to

so a it's of And things. those combination

X more coming from from And of guided ops production so we above CapEx. opposed X. and little a and to cash that had now as seeing to previously We're above flow

Pierre Breber

And incremental there WPMP any have the no delay in impact was really because doesn't production.

the about talking start-up was in incremental production the Mike which in FGP, delay from that effects the production. adds are the obviously of really So

Operator

We'll Mehta Sachs. Neil Goldman go next to with

Neil Mehta

on I question. the to stay just TCO want

and think you'll biggest about, the the factors is walk watching service. you gating from watching us completion to that to landscape milestones conviction key coming around into the should FGP, be be we us that to Mike, through just give getting and As the project here

Michael Wirth

Yes.

Neil, into some technical with both mechanical begun and and message we've get but WPMP completion our FGP we with commissioned then and we the the as we is completed And commissioning, deep we've, to we did independent here, an review annually, worked we off that as mentioned we So utility schedule these issues I of to of normally main previously systems. want wait. didn't these saw do impacts, and cycle. We cost some think,

a of sent are distill as And eyes we guidance that us that and commissioning more going I were evidence in independent discovery the team give kind to from this the thing so saw things more some slower, on and think down some assessment were is would there to a we that of our that progress. today embedded recommendations an of conservative reflect forecast in schedule. updated work, And main cost cold I that

like plan. assuming complex come this. And longer assuming things we're to than so to projects that discovery we're have in will take up We're prior the going items tend

in Future we've other significant fully is which completed resources is over the and contract And Growth some moved portion which onto we're of of from changes work. Project, response, this. over the terms We've implemented a how XGI, commissioning in now approaching commissioned

in to we've brought turnaround and unplanned And of us in then So people of in we've the technical the operations there. address with discovery that and contract any would now We items are restart up. operations skilled experienced resources work, very through managing to come added help resources added that this. also discovery facilities

We've continue So about that a we're talk approach here quarter. we've now, this. conservative change issuing our every and in a got we'll guidance significant more this had to to

the compressor boost, These is will high-pressure pressure a we've for this I at to conversion. look driver low-pressure which got very things large main to start machines. big here trains of are are up key guess that

key pressure. are that milestones. And converted got are low we've or pressure After high so those metering from that, stations

the so metering got I've few big turnarounds out these I think, there's, that the as X quarters, field. and And about. We've next stations go talked you XX-some-odd over through entire

All be forward. are very we of closely, tracking those update those we'll as milestones go that key really we'll you on and

Operator

go McDermott Morgan Stanley. next to with Devin We'll

Devin McDermott

just to upstream stick but ask wanted I Venezuela. about with actually

been since given some You've announced sanction had and obviously additional last relief there's relief, just initial some the quarterly in year-over-year, production call. increase sanction the

you been might think morning. on have this an interview I

that made and in increase a sequential year-end. now production you You between see some comments could

just this volumes flow? step are was impactful I invest for you remind could on and to willingness has how your Venezuela us can in profile through also if And what cash impact that corporate you region. back, wondering talk relief your production sanction

Michael Wirth

Sure.

at modified some have now was seen There's year, previously operating from the license. an U.S. of define can licenses been with the we this had beginning general specific license, which we yes, that terms OFAC some We that the So action operate. a go government. that, under under which

kind it the opens license circumstances our room more already it in doesn't by here. action so of issued new recent The OFAC change for does general up others for We us. really than materially operating --

think And impact the on it is what people operations our so the really lifting particularly flow bring crude you'll don't more to crude, is I -- some not the you'll U.S. to I see significant. see more think

think so We around barrels XXX,XXX day We barrels earlier or XX,XXX to still a can from to are get year-end. we this up a something maybe XXX,XXX year. by day

we can see the balance there's we that expect improvements and seeing the some of So through more year. are

pay cash the past what legitimate recover really to aren't from we cash straightforward that. driving And of going that within call And operating are production field and we're to -- long from owed. expenses, things that staying royalties, some in the I tax that that's on particularly working restore or those to maintenance fund would that's dues and and sales kind capital-intensive being cycle order is generated pretty

mentioned. posture that's we'll the political of how make on in here while a to past situation with that I and and dues recovery would we remain environment like out, until the plays the in see longer-term sanctions country the I progress continue the elections for expect the

guess, not want comment you maybe of so production. point I Pierre, change, say, would view. of lot a the cash from And I our and on to

Pierre Breber

in which when means earnings Yes. with accounting, cash. what not that's not affiliate are record reflected Mike only said, our and Consistent we're record numbers, -- we right? receive to So we don't just continuing or we we reserves, production do cost

back actually to yet. not made and we down time, we not And decision of elections we're on said, go potential proportionate could recording receive earnings what to So point we'll that triggers share road, look equity And some equity we such, have that a continue at. only as that's in cash. in Mike accounting all the but something but those depending at

X% terms flow. cash of flow, our In it's cash of about

course, of it's than it was So more modest, but before. it's

operations and And so getting a here. goes said, it continuing Mike we'll bit we're from are see as just well. little And there where of cash,

Operator

go Borkhataria with We'll next Biraj RBC. to

Biraj Borkhataria

first want year. sure quarter, well side you in incremental the for Mexico for I a had of know a any I just was I'm about small data driven the very you of points gave to get if some Last you New on ask productivity because this [indiscernible]. it year. half POPs the third the comments quarter few on sample Permian. helpful was particularly wells in the I wondering, pretty more size

helpful. So any would there comments be

Michael Wirth

X% had of also factors. highway operators takeaway production about some was constraints downtime. on in by to nonoperated primarily and of online quarter. capacity that some wells give in just might on you Permian joint a That driven well. was little entirely ventures. delays I was kind the a the in There performance frac broader some commentary bit, due putting couple And unplanned hits down Overall, that resulted the Permian some Yes. other And as --

had to was So having back flat is some despite wells which the due the choked constraints. we from quarter, were that's that surface prior essentially third co-op to. production quarter some And what in guided

others the development as seeing area, one are COX In the gas we're content area higher-than-expected in and well. in

and constrained third-party the can't facilities So handling by process COX. got that we've all handle and that are

we're choking back. wells So

that regulation the meter how co-mingling. into prevents federal and we but get a details, won't it new affects I it There's production,

so got place. some in can get we we've choked And wells until back new meters

some And water in then we've areas. that limits got some come effect produced have into

co-op that working number not that other of are impacting way a bit. little but production that we're things are through our a there's well surface So indicative of performance realities

Mexico. in second Mexico, planned year. in of you're wells right. popped half New more POPs In We the We've New about the the of got XX%

in the So balance, come almost on fourth quarter. the half

generally strong. performance POP has been

overall those curve of but the constraints hit aligned about, Some well that wells are performance facility type our is by expectations. I've talked with

enough the some performance. when enough evidence think last kind quarter that fourth We'll the have come some to call, we we back start I online. can get have show of type that detail curves. to months we'll more on Biraj, did of quarter to of them give with you we same We'll the you

Operator

Research. We'll go next to Sam Margolin with Wolfe

Sam Margolin

we'll the upstream and Maybe in CapEx about U.S. U.S. ask number. stick just of a the lot here. There's with parts moving

You've got incorporation of PDC.

play, alluded You have you kind and of [indiscernible] projects that and Ballymore effects then coming inflation to. into timing

influenced time? I guess think say be this overall? over any just these you like Would U.S. quarter's on overly that sort would plan about upstream factors of of not or capital, how may mitigated it when it's by may one or characterize you you

Michael Wirth

Yes. U.S., end Sam, going think you're the year. as mean, we we right. to seeing end pressure we're probably I are up than in our budget and higher the I

pretty as factory into integrated we much being the is PDC expected.

because a wasn't of plan, not driver in our an And increment this. but it's so original really it's it

is more than planned. more we drilled thing big and had completion feet seeing actually feet rig The per we're

But so to And has of we had productivity tubulars, than on more means anticipated. the activity the sand, continued that money development primary on water spend on improve. we

of brings with but So costs. it's it a it kind good news, some

orders lead seeing long place where we're that we some lead say need earlier. got long to We've supply chain items realities

ordering So and year ordered this some things actually next initial we into otherwise year. that would we've have on moved payments

there's So dynamics lead going long some on.

I the that way seismicity. and water the becoming of doing incidences an of in a produced mentioned And that then reinjection issue, minimizes is earlier, that induced

some water spend. got we've more infrastructure produced handling So

little be those primary pushing that's kind pretty the say is Mexico are and to drivers, on Gulf of a of right Permian well I So plan. hot. the would

costs seeing is you're added that's then into what we really program PDC, so increment in of is And a there anticipated additional really the we and that year. function which hadn't went Permian been an as the just some

Pierre Breber

I'll just add.

year-to-date, in $XXX about the $XXX we're million ACES which inorganic, -- quarter PDC we $XXX is and third through ratable quarter quarter in take the that third you third had $XXX budget. for million above the year-to-date, primarily out if million So for million the for

higher. Of course, quarter be tends fourth to

So the budget. above a as likely year little we'll end Mike says, bit

Operator

We'll go next to Paul Cheng Scotiabank. with

Paul Cheng

back to little we problem have and everything. learned there? cost I not increase TCO? that the go project what for the mean, and better your future become facing question a the bit the and late It's I of I Can is process stage will from this guess ensure to that, entire execution

the last slip a very a is also increase. and at been all that reasons. it the the mean, different to has project cost disappointing quite along, I the But number for stage this I bit challenging bit schedule a of that frankly, in think, of

Michael Wirth

thank Yes, you. sentiment. And look, the Paul, I share

understand the coming Big I So whole been for along from. projects, you're where ride. complex you've

there early on, were we some confronted know addressed. that and you engineering So issues

In difficult. the remobilizing, the medical our cost building and middle folks clearly of and great whole facilities bunch And and our to and complex manage pandemic it, through way that was we it was a the a did had stuff schedule. big impacted but of thing and job, demobilizing,

a the power thing space. days. entire this here, an field, have Paul, is we're big for lot remember, to is the you it kind gotten it's is enormous Soviet And is infrastructure, to speaking, -- geographically as And which frankly, we've of the this and infrastructure -- redoing it goes into back of

distribution the injection building WPMP and gas system. production there's entire large taking to entire power then pressure sour production and So high-pressure incremental process lower taking in from and the field an We're new facilities. it really the

became incredibly And production. schedule the And cost it's this lot we into this commissioning went I increment we what field-wide it of in is of seeing, in of almost fully based on schedule. early And schedule. that process as we And think so what a the a refurbishment and in of for reflected is early that the account in don't it's -- it that complexity was were need complex. review to evident in commissioning big our then -- and relatively

this, found some ripples in project challenges find big, it the And that And we in things. and a through. -- system. you complex us early on, it time, like utility And cost

is are to for giving assumes would because the things the of need it's I the say we're why that's really now set more And are is in to dealing And it so conservative you encountered project. it's be kinds that to be those guidance commissioning. going the going what schedule, and of we expectations that so with, those that we're balance all realities the

plan It's construction I the is is final do that. bulk not given gave reality really -- If experience equipment well, those windows and All end commissioning for up on things. these because is that we completed. we've got but we could we to end there, you those says of for our of front process. the you, the We plan the this should

resources be and these the And question be to areas as in prepared anticipate -- of to response kinds now multiple mentioned we've Neil, ought earlier by for challenges. I in to added incremental

like this lesson completely projects I that on of on which the the so commissioning think a future, one. plans this, reflect plans is more did will than And in the the there few, commissioning our are complexity

Pierre Breber

on comments just And dividends. some I'll add affiliate

us from had It's lower LNG petchem quarter of short from come TCO. Angola has LNG margins. guide the on So start Angola as we short capital. is return also the Chevron lower assumed. affiliate That's dividends, falls which back at haul of also the TTF We've year. of Phillips had the full That on than from cash Chemical to did year fourth CPChem, we to some not guide given we've prices that Company a on

in second on but ahead million quarter of TCO, terms the or we had can't Board guide XX% $XXX TCO. fourth TCO the share a quarter. of is quarter, the fourth of dividend We the Chevron get In so related

the these year that tax. $X.X are billion, was Chevron you share. remind last withholding before I'll TCO dividend numbers All

pretty total we'll the in increase significant see a dividend. year So TCO

you some Now time construction, the seeing about. so we dividend were that sheet similar year's to balance -- the But to go start of into if period. period we're back to the XXXX, some the -- now the cash will of like this getting saw that be prior excess the from of dividends what talking off or was period we this

X the free having of inflection flow. negative years not happening cash or, putting in after So dividends either cash essentially receiving fact, is out,

be So production to is next that. We going year. we know showed down

reflect So you'd dividends bit. a to that expect little

this We have more then is in a billion bit $X we'll at of that all -- to of in CapEx. increase that XX. And 'XX, is and guidance little be heading than

we're disappointing end deliver news of news cash terms to but the work coming going some the the positive flow the seeing to on in range. front So hard out. revised in it schedule, Clearly we're of

Operator

with We'll go Royall next to John JPMorgan.

John Royall

PDC. Permian the So a I have ex follow-up on

a piece You were there XQ, jump calculate I XX%, color on Biraj's it in the in -- But does guidance to right. down X% big from XQ just question. it around really Mike pretty including if and helpful leave non-op hit

there So And in not, a about think to production XQ are the is you way legacy if that general? for sticking good with guide XXX piece?

Michael Wirth

we're production not overall John, Full X on Permian around you excluding so year fourth to we production the end the or to include guidance. XX, is of if expected X up quarter. guidance. PDC, be in changing ramp expected Yes, XX expect PDC. production lower the Overall

still And is Pierre. guidance Go so for ahead, Permian. intact the yes, the

Pierre Breber

about X% Yes. He the averages shortfall of some Mike constraints. about talked on about X.X%. non-op, also talked surface which these

in worked third quarter in op overcome that. the deliver saw have we So to shortfall we to

laid the earlier So line the the no year. more do out But expect quarter work to fourth have POPs and this production in to guidance. more in in quarter plan that it. change fourth achieve a we little with we clearly, more do We

Operator

next Doug go Leggate Bank America. of with to We'll

Douglas Leggate

I taken other at Tengiz, happy try remaining value you bit here you about challenges. been a of the announcing this of life I look this imagine half because if about morning. little can't series stock want of and has defend to morning of out you're that your

and philosophical what you issues a characterize management You've things market execute through level, queue of XXXX. going be how avoid have comfortable forward? doing a Why are these of team At kind would lot that your portfolio? can you this. timeline organization the that on you in and projects is the with you to major what your question my So got on should the in

Michael Wirth

Well, Doug, right. you're

has in reaction this this. Jay apparently spending calls, We've morning a not back of what to time to we're on I'll there the a only think on traveling but market talking these spent time doing around lot Johnson -- about been I in go capital project execution.

unique the This effort had won't inland earlier and project, challenges waterway had I this with around the went the pandemic. we've but is And large, a our it. a I Paul, from system the repeat with supply things in through through world that the coming that Russian through is all multiyear way chains

one. record not I the are developments they're our to that projects that are across deepwater that those basins, remotely talking projects shale things in The different. kinds multiple think we're are this quite factory track There on queue of similar about now is development

world, way ones on we the have think these employing complex do. the capital I despite that that of in challenging. about And firms really they the so complex partners best part engineering very And and are construction mitigate in lessons be capability, we is the that projects the we'd strong bringing really selective and are

a execution that take this environment in Kitimat despite ultimately to we're the of not from LNG an we to kind concerns we -- on about because of better, project efforts like make in a walked that said going lot point time. project We had that, at particularly and project away

into of but of some ago do. will project, apply is many similar And of way so which go TCO of of it that Part learn implemented complexity. it you integrated a those into have learnings, project projects is which choose and and from what you continuing other TCO implemented part decade the the forward been the from to be

So we project line a got And full close commissioning applied we do. lessons clean we're reliable, finish make start-up. on have sure will the be to it and safe that and is every we've a the in to look, the court from on other press that And thing. that this

Pierre Breber

And It's the impact restate -- $X.X about. billion restate I'll just at Doug. yes, I'll impact that's than that share. $X.XX Mike the Mike just less XX, talked that's a thanks, that

were they that. a lot clearly, than more down So

know that earnings talked nonrecurring. we We about time, noncash same reverse that in at also are that effects the and the weighs discrete items, is on shares, timing items

So is good the the reliably, underlying be safely about these but in one quarters of as we we noisy. company's them, of we quarter earlier, strong can We terms how the Mike be it and captured how messy, have in performance feel said can and we margin. very where It's operated know, company healthy.

Operator

We'll to go next Societe Irene Himona Generale. with

Irene Himona

You're your the from referring and PDC upstream. DD&A impacted having comments higher OpEx to QX to assets legacy

And how synergy it would you the you PDC and fully estimates to and OpEx long can that look original Now sort are those start in you expect you the that CapEx? own of business your to under takes bonnet, accruing how you for on about results? thinking

Michael Wirth

the to Yes, versus -- are -- additive simply that the so think these reference I Irene, was periods. prior

and want what wouldn't the because were than anybody DD&A different to we not OpEx And somehow expected we so what than the different interpret are they expected. I that

synergies. track that good. We're have transactions. change time over all Synergy right capture guidance. No is on there's of We're other we to we'll to the on capture confident realize upside, the as and that

didn't that initial and we operational has into the our We build think synergies well. CapEx there's procurement captured as synergy and additional been midstream target,

a has -- we maybe closed months view So reaction thing this where here guidance. ahead I the the quarter that of a been Doug's appreciate in about X the little transaction nice

that We with that. debt. high-cost pick up paid additional go cash production We've already for a bigger and part the of along the earnings off some flow year,

into that is going everything a integrating to And we I and that we're so it's very some. now, that sound our expected business deliver, transaction then think, and

Operator

next Gabelman go with Cowen. We'll Jason TD to

Jason Gabelman

Hello?

Michael Wirth

we're Yes, here.

Jason Gabelman

Sorry.

-- ask yes, to you wanted can I me? that. about Sorry hear

Michael Wirth

I can.

Jason Gabelman

about to on what's I East footprint. going ask Good. in Middle wanted your Okay.

had I believe to obviously receiving. You've take Tamar fixed that asset offline. price you're that's a

gas cash cash ability profile what losses? thinking else events somewhere reroute us of and you're the So is a those the light Eastern how could overall, if probably over any that impact Mediterranean in but impact, if how there's the about you think to recent it remind not then the growth And offset you about change large or there. maybe

Michael Wirth

I'll It take production on development opportunities address ask Jason. part and that the our the change the really at second view all, to doesn't then Pierre cash impact. and of

a projects resource. Cyprus and play. We're very, It's opportunities a some offshore is on gas ideas like sanctioned further Samara-Leviathan that the the expansion to on in have both been field follow-on Leviathan. in long-term large This the develop. working of Aphrodite the waters on expansion exploration very working region. We're We

we've long-term those opportunities. But risks our keep and measured a the long-term have term is the be safe integrity years let attractiveness the the to in prepared in create doesn't operations. got we view so and question. when we the on right our things short to you I'll people now, to the and asset of decades. And see view, development to that of and circumstances And which address have maintain mitigate take it that the change cash Pierre

Pierre Breber

but regional to international Yes. right. and sort effect, in some And of them. We a below and there's are ceiling. inflation. of talk it's There's don't oil contracts are about escalators numbers you're tied that floor specific think, price There's sensitivity, these some our a But well prices. within prices I

the of dollars So we very calculation. gave cash the guide We the of tens flow modest. millions production It's terms the on in doing know is of impact long. on and how don't

in we'll in quarter where end it long for. we up how the and see just And is shut so

Operator

We'll with Ryan next go Piper Sandler. to Todd

Ryan Todd

Hess of coming Can update little you basin anticipate on any the switch in assets any have Maybe a overall the in the to approach do an your addition to bit to Gulf you the Gulf on the Mexico. basis, gears of provide impact maybe years? the

then in separate hitting scheduled or expect progress update have we the whether come us And at to year? half the the and timing and you're X second the those those projects during of Could you onstream Anchor, maybe maybe on the XXXX. [indiscernible] projects should Whale half of first

Michael Wirth

Sure.

couple a we operate. out I of lease we'll to there. they as integrate back projects We So transaction combination Hess, partners those. We're we think on with in the that come positions the close and both have you

exploration across and but I would talk combined to as more we go position high-grade lease that you about us we expect we'll the think you program larger look a as forward. to --

first Mad We've X Mad you're we of actually expect peak -- year, terms specific projects, saw next year this on oil yes, and In Dog X. right. Dog

You the to more can refer on operator for that.

and next in be is in Anchor in The fabricated. X -- the then X year. manifold FPU in preventer. in pump in subsea and safely are are 'XX, right now. XX,XXX there moored for landed oil 'XX all field both manifolds total, Anchor and [indiscernible] psi out online and X will Whale 'XX, tested The 'XX wells X first that We've X in systems expected 'XX. is the and X

moving project is nicely. along that So

got because wells there's you've is initially. of And similar online. it on 'XX a latter couple over online kind to Whale smaller online. then additional probably come only you're to the of a of see of a in wells where project, couple Shell modest of number Production of terms I'd profile the part refer going a years, midyear wells subsequent in first general XXXX Think and the of timing. oil

And in and impact up 'XX of 'XX does than show in XXXX. production starts it so a in that to way greater the

XXXX, simpler And X in XXXX, then that blind in development of first is be actually would online wells, faith, to tiebacks oil Ballymore which XXXX. XXXX, online X will in not but come

online third in The one come would XXXX.

you'll on again, little more see a then the of in bit so and 'XX And production 'XX. it that 'XX, in and

Pierre Breber

more Hess. just on Ryan, broadly

our Investor gave will planning a in big is closed Gulf transaction be We the not This in portfolio but timing. review sales usual our transforms are overall. Mexico have potential either of antitrust just the at Day impacts We on some We'll or likely to process. also. hold asset guidance

So for combined really you should several Day we months close do together us plan investors. a Investor an after have time put and we when our expect to to business

Operator

Brackett Research. Bernstein We'll go next to with Bob

Bob Brackett

perhaps shareholder of you? your case and the base Can You've the the anything talk conversations, those acquisition engaging of tone but the making you for Hess. spent obviously, of part to with not enthusiasm, that details, week the surprised

Michael Wirth

I in larger a I'd out. the course, sometimes Chevron than with met was with Hess, say But John of meetings I out sometimes Pierre number Hess was -- separate was. some shareholders. overall, I meetings and of in with shareholders, we was larger

value long here. consistent, people future. very durable set company really very think one that proposition shareholders clearly is to stronger combined I fashion stronger predictable cash the general, the as that see in long-term and see for to distributions And in ability into say, they a would and it be a sustain I to is up with longer the

that doubt And that. so there's -- is about no

tension during the did other On the you in honest, was questions has much, one high was, So the be on right? did enough we the It negotiation. side, the too of get mentioned, that, there side, pay a as you Some price? -- to going good John it's of that easy way been and I that on asset, for value. great time. have do and both some market not to sets is one looking shareholders a for that's recognizes for been a a deal because and And the in actually

who nuances to I the so and exactly one I value creation. can reasons, they But long-term resource people wasn't think transparency speaking, certain this stocks other held expected. to see the the or maybe would They of you see say, what people for broadly depth production either find growth. And the from

that their which The a forward to with now fact years shareholders have several brings still distributions got that you cash of been the portfolio, meaningfully future. assets more of it set you've one into their have And assets. to those any much -- attached would Hess, diversified derisks

got of plenty say, wondering years rather range in we've what next to were we're it confidence what the of of next and over for and who that opportunities than working pointing us investment to I of gives the and after shareholders future. a on, do portfolio, organic certainty Chevron comes we'll our think what several some currently the best these, potential the underpins they that For can answers see

discussions are And of the so had. broadly those speaking, that kinds we've

Operator

to Truist with next Securities. Neal Dingmann go We'll

Neal Dingmann

shareholder on is My Mike, more return. your question,

return, ahead a as buyback XXX% financials out side I'm paying shareholder great and the cash just to your you have wondering, bit of continues and do, to see or return, buyback you the share have particularly you on in to continue growth to kind now? free continue that quite buyback any flow. do be You over both you to continue programs balance shareholder the have on try the change opportunities growth of high the you dividend and the

Michael Wirth

set priorities Yes. many a financial We've had consistent for of years. many, very

which I has last CAGR CAGR. payouts been year, The the years Board XX a X% been is last dividend and early share XX grow. to first approval. the have X% per announcement Actually, an X now of for years think years and X% next to consecutive of sustain a of subject

strong can a record there's expect continue. think you I there to track

flows. business is be reinvestment disciplined cash organic grow to Second to the into in those

continue can we You value. to returns in that reinvestment will drive confident disciplined that be be and to

Pierre ratio have Number three net than mentioned is single-digit over a debt strong balance we're That's today. sheet. we guided to time. lower

time, over can XX% through sheet the the towards we're as where so XX% back balance And to you gearing comfortable the we've that expect move identified to range cycle.

for range Hess billion X% range the close got Today, X% each repurchases, year. every share XX high billion annually. we've now then and fourth XX.X and the to we billion. of a with We're And when float our that's of transaction that the at to of are the end XX

end And we're high that And go we range that a that find price is higher details, in indicated end would we and at I of we've won't certainly environment, -- the sustain a where where through today, apply. but can ourselves range. price lower in that's which environment, we've of the the lower

would we here. consistent predictable being so durable consistent, to to sustain expect mean, and and be that. words the key And I

you've us framework remain what I unchanged. with So our the to consistent be broad from come will is historically. And I think very think likely behavior to see

Operator

from Syme our Citi. with question Alastair final take We'll

Alastair Syme

has Hess? terms further different back several even course, the downstream you're to I of the oil now For upstream. And bit companies a can years, exposure. low Chevron looked integrated Mike, to to other in the of reweighting go

an So about is? do Or does at you integrated all? balance company maybe think what how volume oil that

Michael Wirth

last not -- been into the depreciation. years. me. Alastair, company be short under but we've have Yes, been And bother below upstream doesn't people, We becoming obvious it actually is more our that most to a CapEx answer several has no, the our the may been downstream-weighted

So our been business of has employed. a as upstream percentage declining capital

big those In made expansion downstream, facilities. in the renewable We new projects got acquired some a X investments. petrochemical acquired now. of invested We've in company. refinery We petrochemical energy underway a We Texas. we've right more

is downstream upstream I'm this close -- XX-XX we'll historically the When weighting is from been. which we to XX-XX, years. chemicals few which And at so we XX-XX where to had gone and XX-XX or weighting XX-XX or over we've back be sorry, last transaction,

of growing And the out to of which in full structurally are that governments to cycle likely they got put transportation cycle, of just those, base, a are in demand. and when reflects intervene off returns a be got primarily the you've resource economics, in of the upstream, pure fundamental that than other downstream over declining high, view in peaks and clip built They fuels kind because prices to that are tend higher And markets, believe economics. upstream we you takes kind -- get hard whereas to particular, you the in for close. the than reasons refineries tend

more quickly. fundamentals And rebalance so the

you decline continue remove and see of see You to bit investment, and demand a grow. you little takeover

And so have and to we markets imbalanced, rebalance more get quickly.

some generation in We are for liquids our reflects view substitute in also alternatives that And than gas, for of peers. have are that a particularly there more fundamentally, been more transportation. oil-weighted there to than power

to economic We through capabilities, there are And business to We to be so those drivers the of is. to bear integration, why the build want has way integrated company. kind those an been by are think technology, run different opportunities skills high-level capabilities portfolio segments. entire constructed value capture real across it that our our bringing of to

are little And to weighted a up long that portfolio peers a views the and bit held we've more ratios our constructed different. all the downstream. are them. But reflects The than those

Pierre Breber

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

Operator

Third Quarter Call. Thank XXXX you. Conference Earnings This concludes Chevron's

disconnect. You may now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.