Chevron (CVX) 26 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Jake Spiering	executive
Michael Wirth	executive
Eimear Bonner	executive
Sam Margolin	analyst
Neil Mehta	analyst
Paul Cheng	analyst
Wei Jiang	analyst
Joshua Silverstein	analyst
Biraj Borkhataria	analyst
Nitin Kumar	analyst
Jason Gabelman	analyst
Bob Brackett	analyst
Roger Read	analyst
Francis Lloyd Byrne	analyst
Devin McDermott	analyst
Ryan Todd	analyst
John Royall	analyst
Alastair Syme	analyst
Neal Dingmann	analyst

Call transcript

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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 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the conference call over to the General Manager of Investor Relations of Chevron Corporation, Mr. Jake Spiering. ahead. go Please

Jake Spiering

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

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

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

statement that review please appendix Slide can estimates, be on in presentation the projections the of and we begin, this Reconciliation measures Before other this non-GAAP Please presentation. of cautery be reminded contains forward-looking statements. X. found

Now to I'll Mike. it turn over

Michael Wirth

Jake, for Thanks, operational joining today. Chevron cash capital and cost discipline return maintain strong deliver us to thank you, shareholders. consistently and everyone, continues performance, and to

with quarter $X earnings over adjusted First quarters billion X marked adjusted ROCE consecutive and above XX%.

returned the to also billion. in the $X over quarter, eighth quarter $X shareholders, we cash billion straight During

more and year substantial last Hess grow We certify we right Fund We lower-carbon arbitration. that investments not in XX% also and our businesses. Earlier technologies. decisions our The on grew venture Future hydrogen renewable announced this investment are announced and preemption production same from is we and third to this the the confident in to quarter with coming transaction intend apply advancing, affirmed fuels believe a second to focused will this than weeks. be final does with Energy the FTC merger request compliance month, in

the this with boost April held company companies This together. At expect and a Hess separator forward look provide generator this and a the and remainder we boost strategic start start-up gas conversions complete. as We be X are turbine planned energy and and online service full to to a a first the boost station vote deliver compressors meeting and keeping compressor in turnarounds. compressor pressure Tengiz metering TCO, creates third of up, the premier capabilities second the existing SGI through assets with with power expect year plants the inlet station the KTL achieved date first value, the of pressure to to Later superior proxy bringing low we shareholder quarter, planned we month of the had conversion in WPMP late combination pressure Metering for grid. to special pressure additional to around world-class in May. shareholder now

Costs progress continue on to FGP FGP unchanged expect operations additional to guidance with remain half first up for have XXXX. the to ready significant expected quarter. make major in and and We in of the equipment scheduled third start

financials. Eimear Now discuss the over to to

Eimear Bonner

an of by strong $X.XX Thanks, earnings marketing impacted Mike. expansion international or network. upstream $XXX Cash $X.X reported delivered We were earnings and of from operations billion per $X.X billion or quarter We Adjusted to for returns settlement the retail $X.XX another ARO cash share. payment per quarter share. million of was million flow earnings, and first the ROCE shareholders. approximate $XXX

share. were down all the last Organic lower single offsetting the were and lower Partly net billion of priorities items. Adjusted realizations. also equivalent quarter to downstream in new decreased the a due liftings. realization production largely earnings due affiliate than due growth. and All repurchases XX% commodity first of natural were of earnings growth to commercial Energy downstream dividends last the $X for payments and quarter, swing margins Permian mainly stand build highest earnings debt gas were Basin. lower billion. Adjusted associated Adjusted effects United tax by timing capital by an $X per upstream paper the favorable an to year. history. with liftings was in due tax and issuing offset in up lower to quarter. effects. Worldwide manage modestly. timing were Higher impacts. lower down with the Adjusted inclusive increase during We budget in more ships. first from working year, organic mainly the during employee to to oil working including and Permian $X.X versus down acquisition costs other unfavorable the Adjusted refining was share of timing Adjusted our and were X% was quarter the and billion in its DD&A Production [indiscernible] earnings the were lower XX% progress CapEx rising an due liquid higher historical with upstream last had financial were on trends. Chevron in delivered increase digits PDC consistent earnings over dividend higher LNG of acquisition aligned ratable while on environment. capital company's quarter States price earnings for PDC

second have ahead Looking we assets. to and the turnarounds Mexico at TCO of several quarter, planned Gulf

first quarter production half Permian, the trending [indiscernible]. strong we another and Following guidance, than be in to production our is better expect now previous

approximately after we increase our the published our Jake. to consolidated restricted We that call. Back regulations $XX.X remainder and million by resume guidance over are sensitivities quarterly new be will billion at to buybacks document website which annual $XXX to vote, of you, prior expect shareholder month to and posted the SEC with our repurchases rate. earnings updated to a We've Hess TCO's the year. Share the under intend through DD&A the

Jake Spiering

concludes remarks. our That prepared

are [Operator take open all to please ready line. the Katie, We questions. get Instructions] to will do our questions your your We answered. now of best

Operator

from first question Research. with comes Margolin [Operator Instructions] Our Wolfe Sam

Sam Margolin

some there's start going could specifically, detail. start-up, there. effects WPMP Tengiz we don't mind Maybe with movement you the of And because the into if

understands that what TCO any think produce up, at it or to there's this from run benefits market whether annualized stage, it's reliability of or very if nameplate rate CapEx just I maybe potential incremental But helpful. kind even would capacity. WMP means and it's TCO's rerates distribution distribution starting really an over that the that FGP for phase the be

Michael Wirth

project the ramifications comment that. of operational the bit a Yes. dimensions to of I'll Eimear then little and and Sam, financial let on this, me let talk

look, first and online we're begun that's really WPMP processing with the the pleased crude initial progress through and compressor conversion the with of pleased PBF been start-up plants that after making So we've the first metering milestone. been team well initial the station. It's They've this with is they've expectations. doing. We're proud of operation important done that our I'm and seeing aligned of work the safely. the an

we higher new and fact, and planned to the on production the metering in tie-ins normal underway. balance stations we've the of we've of quarter, station the got pressure. throughout operational wells an back new remind into confidence have production we've What gives compression we'll generators from got X would really conversion In quarter, turnarounds the a wells we to And conversion here does turbine thing first maintenance. this as We've that more service. the capacity, scope been some lot plant We by second some fact I you as between will is metering full year KTL being next Sam, KTL and complete is long very the in system, response we But strong all this with is is some distribution the that other this just of other now full new, keeping period got is the center, confidence more from SGI flowing against of set encouraged that metering be wells. deliverability feed gathering are because X of PBF seen off-line, a new now, the And now plants project the We're gas response bring happens that first time. We've have got for get periods upgraded of the system, that control utilities over it producing on us wells. year. What said, of. a in high lower SGI turnaround to big-frame in that it do a turnaround, degree I increases and those, power strong do. of We've station.

reliability of the everything the place. and modern networks equipment and all So is in as got of the improved control more we significantly infrastructure

this the reads past was to strongest So through of several. year second production strong higher year all degree the in performance. And of last reliability,

confidence of you us as process as we'll next start-up year what as half part the there. then say, into you which, quarter, online. gives incremental production FGP, of the we've third see deliver delivering it the when is So we first we'll equipment get some commissioning in high said And start come

I'll maybe that means schedule cost So that we'll the and each around. way details just reiterate about as on are unchanged. we talk And good continue milestones and quarter progress what you can financially. all guidance to provide progress proceed. Eimear,

Eimear Bonner

grow. With continue well, will next plants flow of couple Yes. we years WPMP, starts profile enable full. over next after do the CapEx over and of cash years the to up the project the keep couple of Yes, to decline, it Thanks, as will expect investing, years, that the free to Mike.

significant for allow be will So and that distribution. this generate to will cash, IBS business available

then free of project, in year With the that 'XX, going further is we the phase second project phase next incremental TCOs with cash get grow the to because even production. flow of

$X this combination repayments, $X flow in free cash expect So what through so through from will loan operations see we XXXX of us for cash to you'll billion Brent. a dividends, billion for Chevron? flow is cash in come of Well, flow This a will which and embedding. does flow mean XXXX. $XX this through This and

this we So do expect year. dividends

for also affiliate of included XXXX. in affiliate for dividends assumption the And -- $X portion guidance to second TCO. for outlook that an the have deck billion We guidance is $X.X we've the significant a to billion. around quarter, today dividends But

Operator

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

Neil Mehta

program. really My on the question is exploration

an have you Namibia. Africa West Specifically, position interesting in and

can got context announcements over especially prosecuting of see weeks? how asset some a And you of this historical last given you in, about opportunity you So think just some here. it forward? us you of do an that peers Is going from maybe the lot the give of how couple involved

Michael Wirth

north which recent was another a And been nice know, year opportunities and Neil. announced outbound based next the late exploration farmed early the made on that completed numerous exploration of rig got Basin was space, Orange the week. a is lies Orange or in XX Waldo just further the discovery portfolio by this have spud Yes. availability. Block early block, discoveries in announced of 'XX. We that Thank be including in Namibia, there rig We're there in company. the by Basin. prospects in outshore -- companies you, block and this well The We've of offshore on will another you as a planning first world number XX, earlier Block where which just year around into to

discoveries. from to a talk batting you good we're Our with industry high others. by now as encouraged And is success there. into blocks has where trend is high area those a certainly this success. the program -- pleased We're the offshore degree we on an X of we a get block Namibia. see more got exploration we'll average, we've of And the And that course, had

Operator

We'll go next Cheng to Scotiabank. Paul with

Paul Cheng

small the don't a in deal Coast. Coast stations on adding did I asset, XXX guys marketing retail over and like You actually the West look Gulf remember.

you head ago, think of selling I you've it, call since guys say, years the have of been been XX downstream, there. out

there you this to deal you of overall are So change of of marketing is asset type that is this to view And the network in part deals terms are we drop the that going owning of that the a business? be or strategy acquiring? that wholesale need whether

Michael Wirth

Paul. Thank you, Yes.

and little of about U.S., in Chevron X% world: East out know, primarily we the Look, you're in Texaco Caltex we've As less Asia, and brands of I I of X own really strong right, branded even come Africa only Americas. And X% about the primarily love our stations. retail. Middle business. the than in here, internationally that got talking a around part the bit; you

and we support our of there quarter the agreements is a and retailers different distributors. most their We've deals last mechanisms of supply times, We into to ours enter these ultimately substantial add to to through business are marketers. done investments. So efforts, done agreements of that couple brand of in a that support are and with investment cash network. of we conversion with agreements sell few to in that, large on solidify brand here part their And use customers important the our advanced consumers. our really relationship some And their as hundred to to network stations

want saw but as cash. you some it consume And technically grow classified because our we helps from is it us so sales. accounting disclose standpoint branded get cash. It And that capital, it doesn't to an

today. the doing But they the We're for owned mention Paul. an And the deals did we it we our important to Thanks of There so stations. it's part would all tend business. independent retailers. we really to these way that of be don't question. smaller get a They're oftentimes these magnitude, strong won't kinds necessarily where size by time, so own

Operator

Jiang go with to Barclays. We'll next Betty

Wei Jiang

than that the to you the what within so just highlight? the that relative with -- the year holding operations you especially in your anything Permian then Could quarter, U.S. to unfolds? we're look think talk pretty Mike, about you seeing better U.S. rest performance better the just expected how the Permian just of drove And in else strong and expectations. want

Michael Wirth

Sure.

first good, the we in momentum from our building strong quarter quarter was XXX,XXX the Permian about of fourth a last day, had yes, X% stronger than production from quarter fourth company-operated Really anticipated. year. off good, barrels of in performance year, the So the business, what last down

between frac significantly into frac slightly on production. so POP that improvements We in have when it time, and seen put we shorter a a base decline less repleted cycle translate our saw production. We to reliability

that first performance with quarter, in you in few being Well in itself aligned So a see the resulted production. was our POP-ed generally expectations. wells which the more

And about more type our some aligned We're a talking developing non-operated seeing than no expected. And for what we've attractive with that then with acreage, a that's quarters. which so into saw and it's will curves than barrels highest-return production. NOJV, resulted we from or also have we Others have is acreage. bit last and we deliver. year, been even portfolio it. that, this at even royalty investment are of last we contributions activity what expected year right little on stronger really we because performance saw this and lot increased venture in we a lot good there the royalty the strong few time, the increased visibility joint confidence And that plan

to So online to mentioned down. versus translated And course, around first day. previously X% be the all a We expect barrels half We've we'll of we'd wells back than frac guided. think strong of X% expect said exit another be that of first to and less X% we half spread. we XXX,XXX better year now the year, than that then, the into now year. fourth more quarter. Eimear of quarter We our last down a had got very

start-up floating is relative broadly the and there and got project prior you've production the to Mexico of Gulf the So would deepwater midyear back the the U.S. oil with Anchor being in really momentum commissioned It's is performance strong consistent other guess -- quarters. The that. right more we've that I as The seen is facilities. the thing I on in guided speak. track. unit towards of we We've gas both in buyback mention

means completion hydrocarbons. the process the of infrastructure, commissioning of first charged pipelines, with in is progress. the live units line. The the subsea are some that So well We're including flow now

shortly. is be completed well and Second drilled will

Third well is being now. drilled right

are as So up And right Mexico Anchor right subsequent talk Gulf well behind Anchor for we'll but other about course, we've that got is over of midyear. more projects quarters. start-up of kind of everything then, this, on track stacked of

especially U.S. in strong. outlook the the is So

Operator

to UBS. We'll Silverstein next Josh go with

Joshua Silverstein

billion think working $X really timing. paper repay sense capital where go wanted of cash manage some get quarter sequentially? Do the outlook in growing a to Just of cash distribution and may the that around the XQ? sequentially. debt you balance add Do to You you commercial the this of

Michael Wirth

take don't why you that? Eimear,

Eimear Bonner

issued cash. and a be affiliate paper the lumpy. of be bit was in had short-term it liquidity. a of just Timing commercial Yes. yes, bit so repatriation can we can Josh, some first lumpy, quarter, dividends

the So normal us this in for first was business quarter.

as cash But cash, $X hold will billion expect mean, number. to is in billion balance what I think and good of about the terms a that well. terms in target I $X bounce of we on in think around to sheet, I

to liquidity lots have and investors, We bond facilities. access commercial of paper, credit

So low balance while holding in a can with of be we've sheet past, in liquidity the had the higher lots and access cash cash returns. drag to in debt excess

you a quite comfortable and good that's number to we're their for cash, on So clients. focus the billion $X with

Operator

to RBC. We'll with go next Borkhataria Biraj

Biraj Borkhataria

on ask to follow-up Permian. a wanted the I

of talked your and the doesn't some have put Mike, the broader very about which it's out it's in so like impacted COX, updated well water, ago, very constraints you productivity well. which in term, the volumes few a So is you quarters the on. It the performed near Permian, But side, whether helpful. in look

your refresh has on just in on that you could So us changed views anything there? if

Michael Wirth

underway only Delaware, And to midstream water of that's aspects part all build-out to Yes. mean Thanks, productivity, we've require addresses. Biraj. large gas the things. in and of not New which top it's also completions, Nothing's it's development we but will really focus I a changed. capital But in our base processing, a is base wells with another this really large stay which very be some and is of very reliability it's that business of of you we've year footprint. some and on. reliability the operations. now more of is one of And takeaway, seen handling. And a efficiency over on these on thousands important capability, this all Mexico got program Seismic portion issues have this on business going drilling

impacting question, takeaway the oil, gas capacity and on the and well the are some We're that out gas future. NGL saw And be number had particularly things which a into every of and the back within a you covered all of capacity takeaway for of about really where thing quarter out managing basin current might I on the reliability those challenge. implied so talk mention, constrained, people were and And couple they're your in safety prices of day. business out basin is see the the of -- good commodities. a other We quarters a part quarter, performance. Last each we might

as discounted that. a exposed of so we're not to any result And pricing in-basin

Operator

with Nitin Mizuho. go next to We'll Kumar

Nitin Kumar

to Venezuela. an that reports of some wanted administration banks some maybe that is country. the a just I update get There Mike, export reinstating on were on

included, thoughts was the on your and sort of exports how production it just said and but Specifically would oil of that impact Chevron? Chevron from the not future country

Michael Wirth

Yes. Thanks, Nitin.

a division OPEC, that operations one might Venezuela. in what couple XX, And been administration XX, you That's country. of and the that. go recall licenses us. XX. pertains General well as for which where And License There's announced different, with broadly. have been subsequently applied a specific more within which second to called don't There had License the companies So there General that in for one impact licenses primarily kind called of are position really issued was Treasury issued one along the Department general some changes. our a called that has some to treasury, has then GL changes There's of the no those

really well. And And not that, XXX,XXX self-funded you, that U.S., now from just read now. U.S. oil issued little and to bringing a participating day for bit lifting year about not time spending the increase ago, the which helpful more barrels the we've a ours day license that it ventures as in affected you've putting license not just from been others been now. a was the issued cash joint operations. we're to than barrels was system, XXX,XXX at We've into has but refining production since about a we're seen that at news the from really so remind Venezuela the about is recently. I'll capital right by we're new the All

the reminding of that's than update. how maybe parts just side that the different works it of are little be other financial bit of production. a some some worth So our There might because it's an --

touch that? to do on Eimear, you So want

Eimear Bonner

accounting, do Yes. a equity Venezuela, reminder, accounting. Nitin, for we just as cost not

under when that production we here statement. and So record up the income cash, Chevron income or not We other reserves. recording shows the receive and earnings is

put cash modest, XXXX, X% this probably cash Just into the to context, from was less than flow in operations.

Operator

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

Jason Gabelman

Hess be. to what wondering that's target I ask you given cadence deal of divestment wanted or divestments bit to here, know the billion about a a But discussed for announced, to just the in the program. $XX I'm $XX holding you pattern when I billion. expect was the

historically, I $X ] [ about done think a you've billion year.

the what guidance from far the Hess deal. with too not was that's So

to of a pattern. a Just numbers deal while program holding that is divestment and those the lay try getting and look trying in X sense what could like

discussed just be us that you market, the If remind would could great. have the assets that in been

Michael Wirth

Yes. Happy Yes, sure. Jason. do that, to

first cash. it's portfolio. you're And thing need not the always because the So our is We're we right. high-grading

You divested of of that somebody to fit strength times really sheet. our to a compete things be that balance We to already fit life else. They capital better the our things few years are kinds at who in better covered early-in-life We somebody might for it's set Rosebank were and assets. portfolio. the optimize later But they find value are those that ago in portfolio with and there works with or tend and much assets. don't

the XXXX Over billion decade about divested we so, or $XX XXXX, through worth. last

to maybe to our has did employed, of are capital we're that be history. history the X% assets And in choose we We stay Hess as some capital-disciplined, we have would look year going of long-term if attractive billion that with through portfolio, transaction, it's X% investment. this $X been otherwise there rest our Our that is you probably year, invested highly upon things [ means not And pretty are some closure the of say about that capital per or the for X% guidance going might add for to ], consistent that take. the to. we so now give

XX have still are That in the course. to from. things closure. The so done doing came guidance now XX that's where upon things And the would stand we're would normal we

exited we of got there. to And a we addition. really announced post not that and things the exit X. Congo, related the as Hess public the intend to are We've The about Myanmar, that high-grading we they're in domain, talked deal April so which we've

to that of the the close end expect We year. before

a Cable, some it about our better We in others. talked unconventionals growth in which Canada, has for opportunities, have which nice is in be asset, may position fit Duvernay, but a

last then our fit And paused the also may the that another that's we Haynesville there. think Haynesville, development alternatives and year, better activity others. at we one with in looking we're So

think that the in public So I are right ones the are out those now, Jason.

Operator

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

Bob Brackett

Future of you and I in-house caused cases Energy it launch and how what saw contrast do you out you give solar yourself new to to versus third III? a to Fund thought coming might compare move hydrogen, III, us the And II you Given of that see parties to can success maybe example, where for of try technologies. you

Michael Wirth

Yes.

We on invested reduce Joaquin themes, I for Valley we one about pilot the set we we than the are appreciate smaller, pilots why actually capture. that's venture I've one X companies is been So Future Funds, first got is the we $XXX And for technology us help our energy that. which collaborating carbon investing as in so to our and kind other the in probably going cost really those X/X interesting so 'XXs the really up already. San out of yet, haven't fund bench million. business world. And million, are serve help when We've of a efficiency, announced talked investors Energy the back of them in last which carbon into visited improve in parts our transition need real venture company capture their scale investing late we've with century, XX XXX there, as they're fully a as organization. And X, of some #X. bring things much lab companies. that the year, can were through technology these with business. This to and some of or more with X other for a co-investors getting the bed X Funds from not but can so and $XXX We're Funds they're subscribed that

And decentralization, so innovation that looking looking aren't in things R&D emerging really within at to scale things carbon or industrial doing up. own we're the mobility, within energy what support company, do we our decarbonization, economy. is hydrogen, we're probably like circular the And

and over green solar established more trying these Joaquin are we're the San return than successful. some Valley, help technology or world. Last to that develop mentioned, years, us new you in our to business solve of new Basin investing these kinds every to these into to of materials, thing in seen We've earned allows into back business. And of venture novel Permian ways our investment. move on the our money of the our companies the our a in there's technologies, is there. is problems. using I'll in seen but the smaller that we've of hydrogen technologies doing a other things successful, on out help say that one a to innovation projects is [ integrate companies This ] ourselves of Not new find lot become hopefully, is help As see. innovation and lot going lot we AI well XX we otherwise And will not leverage start-up the our technologies might proven. What we've systems

for new a been very, and positive very to it's announce excited fund. the us, So we're

Operator

We'll go next Read Wells with Roger Fargo. to

Roger Read

at Egypt some been everything But little a improve also exploration one and about there's like sounds tie would It of I there. talk Eastern and in do down. the Can running. back kind investment, government the that where a into bit little we I operations overall to shut environment things know up trying is Med? guess, you talk bit, some to point,

Michael Wirth

bet. you Yes,

But we are the hostilities. excited operations the in all, Tamar We've very was in month there. we're beginning opportunities of -- Eastern of about first back Med. full about down at for a So the

to efficiency, existing on returns, acquisition, of both debottlenecking the Leviathan, we've on things capital in we've And more the of sanctioned And XX% those and you, closed higher moving of to that concepts by increased X we've next larger just development we're we've our Tamar compete at through will Noble for of by in than the production number we're remind in environment, and where there those. looking projects reliability. Tamar we've the at got years. expansion, to that progress to Leviathan, we've and Just got service. Leviathan focus platforms, in really for the earlier at that capital answer, plans current portfolio. Since structured carefully got are particularly with Obviously, couple production being evaluated. currently over We've a development XX% are increase our another

You mentioned a We've at Argus. got discovery Egypt.

a We late plan end there early there We've to this refine blocks of a in on. before we that characterize another yet the well year and the to been have or our other we shot plan. better year field number a spud seismic not X expect got And that well this year. development appraisal in drilled of next Block

an And think so got area I has that real prospectivity. it's

look you As us the near and and I expect portfolio growth to longer the a that over coming part prospectivity, both term, mentioned in our decade. growth then exploration see it's from existing the what I the of expansion projects of at

Operator

to We'll Jefferies. go with Lloyd next Byrne

Francis Lloyd Byrne

this We risk productivity, I good. just to ground also looks which could than want production But covered that DJ? really then the And comment know might a we've expected. any that lot about looks on And touch you of there? morning. on political talked the you stronger Permian we

Michael Wirth

Sure.

quarter had DJ our So put than higher guidance on a was production above timing barrels quarter 'XX long-term yes, lot the first is. XXX,XXX what We there. production of of -- fourth a in day, wells kind

We saw typically downtime quarter. in what some first for. the we over of that, expect than but planned You'd Colorado weather-related had less some

good. was production So

gas there pleased thus quarter. from margin, maybe cash a strong Second an high that had impacts plant continued outage. performance portfolio. low-breakeven But barrels third-party These in minimal far to there's second are [ our the ] have in that we quarter, really that's some we're expect

plan bit production of bringing we will DJ. timing go of XXX,XXX back day our a a a plateau day, to barrels on didn't really pads ago, you not hold there. We a the wells, and were XXX,XXX [ fluctuate strong little of around completion barrels in ] and cetera. based it us. We there et new anything talking it's few for on If years But asset a have

for we recognition the largest significant state the the what this of the benefits an be and some and of and energy who And with state environment And to leader responsible and to very operating a as industry part with There development a just then a around the contribution states. Let the that And is the economic that. and And wants on we're talk the everybody be and be there be economy. and environment responsible and responsible were are over the the noise X,XXX will can within there's got about good in is relationships reminded gas to. And that, in some that in there, PDC, maybe just a I'll of be think where that part is branch, the with there's ballot case. We've in with we live of the touch executive maybe me past bit, But I'm the grew community. a that. I to the people to important been the benefits, economy. confident the and producer think people state continue of committed The working I kind that PDC goal Eimear the engage proposals. proposals. be employees are to important is the investor with legislative player work of their Colorado makes is governor. of to recognize there. But so us around what has Eimear, can well. development confident important oil noise have an legislature, as up to I some broadly important we state members interested our -- little a Colorado

Eimear Bonner

about that been Energy. progress really It's the X months on Yes. with synergies. with We're we're we the PDC closed pleased seeing since

captured side, million also on side we've CapEx we as seeing the the capture OpEx $XXX $XXX to initially well. had to. On We're is guided what which more million, than date,

teams are nearing development $XXX the optimizing there. The we're from a So to these building strong realizing of We're and the bringing free basin. focused We're continuing returns million in companies on together both playbook integrate best flow it. cash the assets.

flow cash guided that incremental pace to. billion annual we the we're So ahead for of $X free in

Operator

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

Devin McDermott

the to similarity is that. talked a TCO. result there I the I past back about and to wanted BNP some how FGP of And it you've think in in design bring Mike, as between

is. months next out as I being FGP you remind as And few as help at the key you the to it if commonality bring derisk as you over could ramp part think are that some you you was the of at well? that As of look WPMP, what the well. wondering online, us about FGP look helps which ones WPMP milestones derisk

Michael Wirth

Yes.

So it's -- just to remind everybody, this is a massive field.

in at years And we're sour push that. compression Some of sour generation of the sour the now do the the of the is and we're that production. half the reducing with FGP, time, now on things increases the gas on longevity the out we injection, injected and taking that field so almost gas, pressure Growth where ago of injecting about relying same life not second the pressure Project, facilities And the back the we're it. all And you plant we And field to production increasing field. visited have using XX production gas. Future did into to

brings it described project as was urban standards. that power with independent. infrastructure, infrastructure brings utility was takes and modern it control it built Kazakhstan renewal. back this up I've modern-day And and infrastructure thing other sometimes And technology The even is to what before

the as we systems, projects you're to the quite of very walk in terms see ensure productivity in the sequencing And WPMP one are of do similar, on is you start-up what that they're to So whether resources across the all do well. for start-up portion FGP down operation, ready field another. or reads testing of project integrated. The

scopes positive that FGP much the FGP think different WPMP, the reads and to commissioning and at I objectives, as so and progress commissioning similar at -- start-up in we're of equipment project well. the we're start-up while seeing And so and reads success making, straight the activities they're straight work across fundamentally across is

Operator

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

Ryan Todd

Maybe Can commercial these opportunities going regulatory to portfolio things color particular that one or the underpins or it's announced whether similar in on develop further forward? I to them technical there one projects different make solar confidence couple in in some provide projects, specific projects, in these of Or support? specific one And in about mean ones attractive? do are FIDs the you see on your biofuels, a on you renewable what hydrogen. of renewable portfolio. side you

Michael Wirth

Yes.

projects. with at venture our Destrehan, So is Louisiana. oilseed an joint X project processing One in a the Bunge. plant It's

oilseed a a gives you plant feedstock And so which one very feature any for manufacturing will flexibility, FID flexible announced design, there. because processing new in was This and fuels important business. matters it that's

but in crops, cover oilseed can be canola, case, able also can and winter process crest. softseeds, So think winter process soybeans to this we we

margin catch into And our scale crush margin consider refining upgrading and Having the like it just margins it later into Geismar these year. this greater business, move that feed being to chain it's traditional potential gives us really across marketing And you exposure real of And from value start in the a feedstocks business, project, fuels range so value can chains. The the or we what important. our important. across into margin are able renewable the the then is can important margin that as have margin. reliability diesel particularly all which moves will flexibility, up the

production solar smaller a project in capacity. ton And So And California existing produce fuel hydrogen We've got for all we're our in about of hydrogen Hills in really it Lost of going a production retail green day decision County. those scale. Kern oilfield X-megawatt underpin metric is in investment facility there. The the per on uses to stations.

is got existing value chain. in California. another using the We're hydrogen So into that building refueling We've facilities integrating we're infrastructure. venture

existing here. And invest so and assets, chains existing leveraging to value we're capabilities

I consistent very I to but and and our want And strategy. don't overplay smaller things As with these small start it, scale. it's to have then scale, say, got

your renewable some hydrogen. some heavily investment of and renewable or in standard the both with Standard, Carbon by fuels are Low the policy, economics act pleased markets, we're point government the maybe affect of reduction inflation influenced that fuel about the things are, so Fuel these. There affect that which to or And in ways, be the it

time, And little cases can traditional our market works projects there, return. look we different bit fundamentals. than where there's we lot a so invest good But it generate makes believe them in off over we business, confidence we a at and that really of a which

Operator

We'll to John next go with JPMorgan. Royall

John Royall

we've one have gasoline We West And crudes as assets TMX How producing region you're should today? still increasing we of are see availability the structurally gasoline in refining. one in well capacity So California. Coast should it's be the higher my you some on now heavy has multiple asset Coast, margins But And had a regulatory the climate. come given that tough question thinking West it's ramped. players positioned West California that out? about is on of once and

Michael Wirth

investments go said, seen is strong forms of one grow, or in system is with. energy, to creates is of and some it has the it geared you've power, environment all to refineries transportation as entire a logistics got been be say, strong you've investment power of continues fuels. or policy supplies And power an and energy for tighter need the issues if the market economy planned And years. to demand convert plants. that fuel-fired to you the as towards unplanned out of serve the that we've and need traditional a it that our is one that what look, We've dealing supply-demand be assay refineries renewable plant where And permanently, in strong remaining chain system, in value to us particularly that the that about lot Well, seen competitive encouraging to uses, California you including demand down, continues continues to XXX and reducing integrated system out balance, where fossil in be questions fuels. us nuclear up. That There's state. a demand you to been from It's that out bring does X some to entire these take existence, close somewhere brand a else an operations advantaged very got in we've you've have for large into allows got energies. lower-carbon

the been under different clear a describe is more conditions, on do best that a to the state got I we've into a margins and means But so does continue think today. we'll It where And mean? wouldn't where place And are we that pressure. investment expect we've means a portfolio time so. that an very And average, California invest question. important. what reliable It new way putting it's I global and pretty operated for long see and to operations we've are probably

Operator

with go Alastair to Citi. We'll Syme next

Alastair Syme

bit regulatory shareholder vote me read base the your the all just talk May in view. that you understand the just case pending a in we a obviously, arbitration. issues, can maybe Hess sequencing we limbo timetable? the go sort about of But to I've We've of timetable. but but get documents, on got Mike, arbitration help the importantly, the

Michael Wirth

Yes.

will at I and are, you're I April, as is And said, if the shareholder vote. here. looking sequencing and things, be One in really proxy So the there occur mailed May. X in shareholder timing think, the vote will out

quarter, that Hess We the the see that would thereafter. how It's with asked the fourth which we tribunal is, complete a with closely tribunal. approval and to consistent arbitration unfolds specific from got outlined indicated has say which the reason bit merits close You've that be defined by by the that here have the at cases progress no this of well legit allow midyear. And in transaction the is role and it to working us less to with making little established hear in arbitration, to in they our tribunal In substantially Exxon we what We're because The process the then us an the that. FTC, yet. will expect the to seen has their think, the line. scheduling we're shortly to time line specific respect exactly point. expect. would I in we what S-X, time quarter be with can't on haven't through scheduling delay FTC third and I outcome But that's regulatory good the

Operator

We'll last our Neal Dingmann take with question from Truist.

Neal Dingmann

margin maybe be do of sort have you Energies you to just broad though the And compare on the about is margins, of how percent higher-return traditional speak specifically. question -- wondering spend think towards business. total how these strokes you of what to My would capital some, directed it's broad ventures? just New still for maybe even and your I'm margins Chevron spend early technology question the Could

Michael Wirth

Yes.

to venture some mature particularly little to may got technology own in that, may new to operations belief investments, accelerate achieve. to in to dollars how any a XXXX, earlier that $X opportunities I I broad company. We few got renewable And billion. And as storage, that large tend the Energies to of think of of to framing have a period that that's we've $XX billion we time, mind of range. question, to our bear below a lines And upon will a smaller period a about risk-return got capture -- New billion kind investment it do the guided you learning, a Number we're beginning of investments, help spend there. a path capital, business to that. these a and we've the this going in year, intend XXXX very the emerging hydrogen and there's of think particular time, businesses. building So around in and ratable. completely portfolio that return millions need of confidence like when in fuels billion $XX then a long-term when capital $XX.X to to deliver is But as announced that. we're we over energy time, not points, on of putting that billion of spotlight, couple above couple we to of little businesses. It's our over and spend be that, our equation decarbonizing kind we've transition through a over business new a business be about billion carbon and our opportunities. We've and expected or be with be capital, sure in larger not think, may things recognize also another our we capital at the we indicated be $XX.X one businesses This was the cetera, We only invest attractive disciplined guide is depending we that et may we a we've our most in that is had which in

$XX in guide, than and but sense, we'll little explain things that make And that if is different a a so billion up we'll numbers bit that. invest end they the

is in tell of you so we're that and there. and But spend invest into as going the long because an And still going invest traditional energy the is that in traditional world's our business, to we've be highest-return the is it's majority what demand disciplined business to very meet by we majority still our the our provided opportunities. got can in only of obligation what as

remain term, issue those we that disciplined. -- we expect guidance you year, But at. each broad to us so stay you can have think and longer within And can to parameters specific I look

Jake Spiering

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

Operator

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

You may now disconnect.

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