Chevron (CVX) 2 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Jake Spiering	executive
Michael Wirth	executive
Eimear Bonner	executive
Neil Mehta	analyst
Alastair Syme	analyst
Paul Cheng	analyst
Biraj Borkhataria	analyst
Douglas George Blyth Leggate	analyst
Joshua Silverstein	analyst
Roger Read	analyst
Devin McDermott	analyst
Nitin Kumar	analyst
Jason Gabelman	analyst
Bob Brackett	analyst
Neal Dingmann	analyst
Wei Jiang	analyst
John Royall	analyst

Call transcript

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Operator

Good morning. My name is Justin, and I will be your conference facilitator today. Welcome to Chevron's Second 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. Spiering. Jake ahead. go Please

Jake Spiering

Welcome Webcast. Second of I'm Justin. Conference Investor XXXX Call and Jake to you, Quarter Chevron's Earnings Relations. Thank Spiering, Head

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

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

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

Now turn it I over will to Mike.

Michael Wirth

Thanks, Jake.

production This delivered more extended Chevron prior of new quarter, record from in consistent XX% returns. strong year by and increased record our a included Permian. quarterly Production track and the shareholder the than

$XX our XX% billion to past the Over shareholders, market over of X years, returned cap. approximately we've

to and of advance end West plays exploration new expected milestones on of green in adding which by expansion, our the America, key the to opportunities renewable in through businesses is come growth the achieving commissioning traditional online ACES energy the project We Geismar and diesel new plant Africa year. South and continue hydrogen

preemption will to merger The in the hearing to We a achieved with the to hearing, outcome look confident forward this does shareholder process successful and remain the We're now earlier affirm a X year. Hess sets combining is matter, the schedule. panel has companies. next The and for expect the the review FTC third but an straightforward and not merger ultimately the a we committed quarter. Stabroek right addressing arbitration the apply. a panel vote, JOA Hess conclude set requested had

margin, our we're Mexico, deepwater high to with production growth. of intensity deliver carbon expertise Gulf the low plans leveraging In cash

technologies. project is Anchor breakthrough to on track while The in is imminent, first at development. deploying oil under delivering multiple budget XX,XXX come industry's pound deepwater the First

by to a to After are and XXX,XXX we Anchor, production online, day scheduled XXXX. projects come expect grow X more barrels to

Our come returns. efficient. designs Unit drilling capital have for developments high have costs facility and optimized down, become more are

largest for the future the As near we infrastructure exploration of capability in areas. opportunities are the existing basin, frontier one leaseholders and with technology attractive in and leading well positioned

with performance Permian, Development applied. to the one XX% base of of to business than triple more lower cost first improve completion deploy XX% rates. reductions continues efficient. where more reliability get activity decline and times by higher the frac, continues operators to and shortening delivering In We're

lower continues as well In optimize the early Delaware performance Basin, year. Midland development Basin, well results operated versus are we to improve In last the company strategies.

the program the to heavily better. that second Our expect targets of in half weighted to perform year is we more development

quarter in from now our we portfolio per to fourth XXX,XXX our of expect and barrels and about royalty production growth XX% strong operating With and full around nonoperated average acreage, day. predictable production year momentum results

At to up and the unchanged XXXX. guidance in TCO, cost scheduled first start is with FGP of expected half

third converted pressure bring We out gas and Three compressors continue turbine A in are XX Eight equipment to major low metering complete is milestones. pressure. facility key been stations have boost project service. operation. generator in online to of

for process budget. completed the on system operation, and ready under turnaround The first XGP SGI is and time we

reliability. and low to boost expectations, are converted wells meeting with operating the pressure are facilities The pressure high

commissioning next continue equipment key while to the field Over pressure the FGP. further X quarters, we'll low for converting

deliver shareholders. project and Kazakhstan, the The project value reliably TCO starting team remains safely focused to to and up on completing

well remain confident some quarter results, we're but light This positioned to that and was other our due little and long-term items earnings deliver to growth. I discrete cash a impacted flow operational

the details. Now I'll it Eimear to cover over turn to

Eimear Bonner

realizations, downtime per of Results earnings by expense $X.XX weighed and were in the were and reported per $X.X We turnaround share. on billion earnings $X.XX quarter timing. Mike. share. or impacted downstream exploration or Adjusted $X.X higher upstream Thanks, quarter that second billion

CapEx $X.X budget. billion, with Organic was line in

with net of of quarter remains in and balance the the one the ratio Our in XX.X%. debt strongest industry a sheet

cash Chevron to due true-up inventories. cash capital. generated U.S. tax a outside payments solid flow the in and of lowered Working billion, build excluding $X flow nearly working capital

working We expect primarily half capital to in the about year, quarter. unwind half second in this of of the the fourth

Adjusted We lower again quarter. share billion demonstrated $XXX dividends returning by shareholders last to of our cash to and consistent versus approach with $X repurchases. were million earnings

of favorable down higher realizations. prior Partly Adjusted higher from to due the expense and mainly were upstream liftings, quarter. offsetting tax earnings exploration were lower impacts absence

was due were All Adjusted down by effects. tax partially lower decreased downstream earnings to timing due This true-up. mainly capture to other offset rates. reduced and margins

were last Versus offset year realizations earnings earnings to mostly due the were and with favorable absence items. acquisition DD&A prior liftings higher Adjusted upstream billion. $X.X Higher PDC were year, down of adjusted second the and quarter flat. tax

decreased to in Adjusted turnaround higher and transportation downstream refining margins earnings mainly due lower OpEx.

other to segment primarily The adjustments. down was state due tax

from and acquisition XX% Energy to year PDC production the growth last Basin. equivalent Permian oil in significant Worldwide due of up over the was

looking maintenance refinery Gorgon. ahead, El from TCO turnarounds Segundo. the quarter Now will heavier-than-usual Impacts several assets, mostly at are turnarounds have including and upstream third by with driven

onetime to There operations to discontinued a payment dividends of affiliate around be around billion will anticipate $X We this related $XXX be million. quarter.

moving we quarterly completion, nearing Kazakhstan in project dividends TCO expect forward. the With from

cash pays from $XX.X earnings billion the and targeting a reminder, flow. TCO, guidance repurchases Chevron tax XX% dividend are withholding which on lowers Share annual both As a rate.

in aligned half year to the be of year with expected guidance. Asset the are full second sales

Mike. Back to you,

Michael Wirth

from we Eimear. headquarters better internally Today, to San Houston Thanks, Chevron's enable Okay. collaboration Ramon externally. both moving to and engagement, we're announced and

want Products to President, Vice and and Chief Vice Vice Morris, long our President company. contributions their President Nigel Parfitt, I to Rhonda of Midstream; thanks after Human We Colin their Resources Officer, and to many service distinguished and careers. also for announced the of Oil, and Executive my sincere Rhonda and retirements Colin Gas; extend Hearne, Nigel,

with and guide lives passed company better like legacy all times momentous high-performing to of distinguishes a ago. He left to a away been our who to leadership. and business and offer Derr, And whose Chevron Ken's made company Chairman people to weeks outstanding Ken an I'd through never X forgotten. portfolio for the by Ken will and be create those condolences family vision day. our our that deepest this former finally, to his leadership indelible helped have our CEO,

Back to Jake. you,

Jake Spiering

That concludes our the prepared remarks. We're open Justin, now take ready [Operator to Instructions] questions. please your line.

Operator

[Operator Neil our from question Instructions] Sachs. And comes with first Mehta Goldman

Neil Mehta

TCO. Rhonda project, time summer productivity we period retirement. to during Congratulations on sounds Nigel, was of but question, Colin a like My their Yes. around are it critical focused making and that the really progress is Mike, And this period. on

is thoughts on progressing. FGP So just would love your how

but it getting next maybe lot we can long a about decade. to questions we're address the to the well. investor recognize concession extension you then relates of I of Kazakhstan, way a as topic And as that's And think as some help debate about around away, that

Michael Wirth

thanks your executives. our about and for Neil, remarks retiring kind Thanks, Sure.

I in liquidated as progress. and we're in at really is daily, strong monthly my sequence, and steady which TCO, So progress. in consistent being planned resulting seeing covered comments, weekly and Work is

you amount I weekly regular get them. a with on team top their game. detail. the can tremendous of I project really contact And report with they are that tell of straight in I'm from a

far And pressure the of not reliably. X boost operating very fourth, is facilities running. WPMP got we've said, I away. up The and As

it well pressure. with So performance the the very very And a flowing the we're with days, performance field maintenance low but early of the the at production the strong it's to time augurs of pleased of equipment. come. pleased out for wells for of We're long

way up and started ready this later FGP, we're we're major for that. through And operations FGP or to work equipment On our going systems additional just going to to have quarter. continue

We're of field station rotating units more processing the moving conversions. as opposed to metering complex into equipment some big and

little will different. on the start-up So a some the bit nature be of of work FGP

thing other turnaround large we a is to recall The quarter. this have do

I in good won't So schedule, thing is The that can safety of team that. reliability the or one all that tell over is you progress. pursuit compromise but we

to the And big nearly is up a can concession away. complex we're respect and focused on running. safely make The important thing project expiration sure and this started decade most With do -- really the this is that getting reliably. project is right now concession, up we

of largest and oil people remind this reservoir in existence. the may deepest know, super To the producing is fields, one trap giant world's that single it's not producing

Republic is very It's extension. potential TCO to be certainly very in we'll to and of Kazakhstan. time discussions us, about important So important government over the the with

for key for created we thing extend. value did extension there's the create an for is is outcome, shareholders. then instances value Chevron over And that concessions create kind to The seek country, where achieve needs places time both where outcome. value period extended recent needs to We've always not and parties. we and of of the other an the been couldn't We in it some

the execution Thanks, this subject -- focused we'll more delivering right performance strong be we're FGP. on project time. talking the continuing really on now, about So over But and Neil.

Operator

Citi. And next is Syme Alastair with

Alastair Syme

right limbo a sort I period Hess in. is? arbitration, you this around to development do opportunity until push of be period, obviously FTC that want significant indicated. the along, do if out limited don't previously clear portfolio rules the me I It's as to Mike, to or any My when came if not to question feel of -- this period is is other they guess in you interim you this

Michael Wirth

Yes.

us. wanted that's do a This for You transaction you else could is transaction to. right if something the

along progress shareholder the And FTC. mentioned the arbitration. we've vote. so And already the timeline with with good steadily we're very focused And on We're marching it, Alastair. made the I've on

work have anticipated, than little good remain -- will things you the it's this to we And time but bit outcome. So we in for. sometimes more confident had a take

kind really remarks, one. Eastern is right opportunities which now. I didn't organic prepared Med, the mention flight And of our queue in a we've growth in of as We another cover got strong

regions multiple over X So the of projects next growth we've that world got deliver poised the to years. in are

we've in world and in chemicals on We've coming our got numerous business well. growth as cash a Absent in basins got Hess, and free flow. projects XX% the

another focused it. to for really were were opportunity creating and compelling, if position present on a in But value the certainly that to itself we're that question. consider we're Thanks So there.

Operator

will with next the And Scotiabank. question Paul come Cheng from

Paul Cheng

for talk is gain? the about for efficiency cost see say, opportunity? opportunity the next, further that Mike, could can And quantify biggest you set or I how Where you X you over mean years do guys? big that? the X you potential

Michael Wirth

Yes. it. Paul. Thanks, appreciate I

long and have for each You I known a other time.

near are they discipline And you and discipline matter business. cost dear know and capital heart. commodity always that my in to a So

a down quarter about focus. us improving a And and was is OpEx Year-to-date to be continues OpEx which XXXX. second unit from about for unit $XX X% barrel,

way of at Some is the time. driving both to cost same the taking a which reduce actions down energy today usage, and we're emissions

we're we're implementing downstream, that our at projects We're use. reduce the upstream, rigs our consumption the Permian. Operations San the energy electrifying lowering in refineries Valley. [indiscernible] and In efficiency in gas Joaquin power at

objective functional maintenance ways activities our to TCO minimum LNG a implementing find in we'll that efficiencies contracts, supplier approach operations in cost. optimizing assets and like confident increase also Australia. We're plants continue at new reduce key unit and we're And to to

Our for call for think unit reductions. plants us would And look cost technology. to use can further you I

both in for and the improve performance. data instance, offer breakthroughs efficiency, For opportunities asset technology productivity, significant we're seeing safety other

And that Thanks, from us am you'll on on so rest And assured are hear you I continue over focused we time. focused about costs. that to Paul. can costs, more

Operator

And Biraj RBC. Borkhataria the comes question next from with

Biraj Borkhataria

I ramp-up. want just FGP and to go the Kazakhstan to

wasn't OPEC curtailment. track, but was I to FGP but on question, I asking So the related is an appreciate operational or promises it

year quota, stated of its So Kazakhstan been a has bit quota. this ahead

doesn't a amount project. to fairly it take year, you huge room quota headline a obviously, that from like FGP And OPEC the If substantial is look next of grow. figures in into

I wanted to So related to thoughts on your or any of issues risks get that. just sort

Michael Wirth

Biraj. Thanks, Yes.

those in that operate, not we where producers upon we impose any country. have sort party to are production they country obviously, some including in requirements or discussions. requirements with of the We the So targets if they comply

republic to things of of regards different assets, We that degree across their looks received happens curtailments What that to together. And OPEC+. you think any oftentimes I relative multiple the some have indication production several there projects is fit plan have to in and create Republic and any not producers. from the the Kazakhstan manage other big variability with turnarounds, with

any think, any don't have contribution I I about standpoint barrels, have we a XXXX, capacity are order time you republic point maximize close to from the to relationship. attractive. produce our the and at is in the full republic for facility for our I So will the a unique knowledge but to revenue at tell And very very in Chevron. for intent that TCO

on further anything that So if provide government there's front, now. them, don't Thank we'll but from certainly developments have you. the right we

Operator

Research. question with Wolfe And we'll take a Doug Leggate from

Douglas George Blyth Leggate

bringing probe for arbitration. a on that can missed the this. pose see earnings and I I guess, Mike, [indiscernible] subjective. up. the to I you you bit highly, around and highly little question apologize the But a I wanted it to it's issue and call, sensitive we to last know get on if I

ExxonMobil, But regardless interest [indiscernible] is in the bigger that at credibility, has buying time, is same the they that the have motivation, concern a protecting of no aspect stated of contractual global understanding our contract. Hess.

to compromise question? not there to acquisition that cut of compromise arbitration could and protect so that don't there [indiscernible], Exxon So the you example, timeline, a [indiscernible] legalities. the but to going gets wonder, for acknowledges short the Exxon contracts a cut go it, secure have short they're the is for have my I is your okay, Is exercise acknowledge you a everybody to Chevron. arbitration? For could arbitration

Michael Wirth

It but conversations. foundation could really the comment can't Yes. sensible. What be I on is have specific very something, you for outlined

there I Hess to find of the everybody's Chevron in the try period and previously where to here a time think resolution worked we other have Stabroek that that with was accommodated interests. partners a indicated block

and And arbitration has process. that we're now time the in passed,

to So earlier, lines appear an it going you the path that is how that, of up. as along but described that's that doesn't sought something this on. We the we're outcome is end

confidential, that and language obviously. apply. and specific the contract understand think in language. is instance, have is how And around it contracts in the Everything contract world each how the I The would parties written

it I anything So than can't really more say that. about

Operator

question next comes And Josh with Silverstein UBS. the from

Joshua Silverstein

Was could there? the I looking wondering kind Permian. was there the increase provide Delaware and get side, shifting if new outlook. due a details specific in the completion completion Chevron? you little a more thoughts Any bit you that was quarter the to from or increased nonoperated in far now as to royalty at around anything away from are this update then technique the just guys productivity And zone volumes? fourth Nice Midland as of on

Michael Wirth

Yes.

So look, the is is first is program now year-on-year. up strongly our everybody, And can the half flattering basin you overall the 'XX as Permian from XXX,XXX numbers. about production the in quarter barrels averaged is which of year. up performance of essentially remind see just to performing a a Delaware in touch over XX% fourth And in Delaware. day, last

optimization. business. the we're efforts, costs And performance improved decline base multiple downtime, dimensions The lift from earlier, drivers which reducing lower cycle operated I of across frac of that are maintenance the lower mentioned business, in seeing time. is triple proactive artificial and increasing

spud-to-pop cycle the So has further. shortened

days a online getting pop we're ago. have So than we year more might

And new count well as bit strong. Midland, a below only have half And acreage. In has are in moving into pops number very a the said, one some finite of on pads. little been this. first of There's performance, the in I could them Delaware zones, been I new hand the involved always we're that expectation.

be homogeneous. across the sure because improvement not is as to completely efforts it And learning of optimizing we've we're basin an active that, continuous got and part development

new as development zones future learn. we're to better inform testing And plans, our so we

very case, well this pops exploration second much learnings That as the go we same here. of are they're nearly of won't which performed more carry or in And continued particular developments not mentioned, said, forward. improvement have -- as past. applied be In the the actually similar I components the half [ ] testing kind will

be in that continually look, asset life think exceeding thing year a for And expectations We've full XXXX. pull that can can in even year. time, us, of basin we the our I we great deliver it Josh. so and from improving stronger a and of big got the matures. learning and over it be raised you as it's we'll got up should lot develop that's returns, Thanks, long-term ahead is we performance. we've in this And as confidence should guidance, we stronger what deliver this

Operator

question And next Wells Read with Fargo. comes the from Roger

Roger Read

of level what industry Gulf the with what how or kind the into and you've XX,XXX new, of given asking the maybe dig experiences the development, had of could we Yes. are -- the has of If And -- some behind PSI that are the for as had this we what you pressure? said, technology the of Mexico, first of watching in terms maybe question, bringing side of you gotten have in some developments the another be it? should this on comfortable things a are way forward it's

Michael Wirth

Yes, to pressures. who was need bigger Chief Eimear, Chief couple I our regime, becoming higher may a comments equipment Officer contain obviously, Financial that ask got and then on that make moving Officer. Technology The because our you you of into pressure -- before

So your heavier. greater all on It's you've got wall thickness equipment.

hook and deploy equipment. lift need to You loads heavier

to anything You've add will technology satisfy our beyond in got pressures that that qualification a your element well proven, the and to satisfy it lot of service. is regulator kit of own every standards what see

And And so there. and step of host the a tighter small. things regime to you whole large up this goes from pressure into you tolerances as components get

we've both folks. developed So some And of worked is drilling used have trees in to your pleased would have thoughts place. and specific that's everything say to very kit, the in and might closely with drilling subsurface we're you surface. suppliers Eimear, from with that from some days rigs technology that the equipment production and with who I share our equipment the

Eimear Bonner

to Yes. development. on with that partnership is here deliver to thing, first subsea Mike, the you partners demonstrated hit industry with able key and was one ourselves XX,XXX the that that be

several of technology place and testing, had, how brought we your we that the because to the we our do before technology engineers, went out best examples took proprietary extent of of the suppliers, the the think brought the question field. I was we of in testing that it quality best our of to best we that terms technology, And comfortable, get

So put and perspective, just some well in subsea things we mention first monopoles. delivered subsea to production that the to and completion trees XX,XXX

that loss core ensures of from containment and can and us this reliably protects So safely we is the operate the equipment that field.

our well. these a a wells. with That do positioning that. to technology had drilled as dynamic enable very depths We special to us built to drilling drilling at rig. the We rig We developed drilling partners equipment and allow

is we to On image about prospect think the used some and get able we our -- good the the here. help more proprietary the the we This were to subsurface decisions side, And really and technology technology our accurate image. a optimize how on enabled the see prospect, development. the us make prospect that right with to that when proprietary us of Chevron about development of

those So really technology where outcome. of the a this and achieve of are enabled surface subsurface just us couple the to examples

Operator

And from the will next come Morgan with question McDermott Stanley. Devin

Devin McDermott

call stick Eimear, wanted production strategy we of flow with on the talked of start-up, bit all TCO been production into beyond. a strong as we this it to growth, far, of for put question cash Gulf materializes that's Permian in go this If in kind in about Mexico, a the I of several I so have you, things together you. and XXXX inflection free rising form and the

next could has in use CFO growth had about views optimal very levels the buybacks you're I seat, as dividend Chevron few the the you've cash. wondering And further you especially talk and some think, was between use the flow for context the time current for But rises of or cash, priorities over more now thinking years. had your of how X, cash I historically low of about in your trade-off if consistent that leverage

Eimear Bonner

for financial how about Well, consistent I'm with long-standing and Devin. thinking have our Thanks, with Yes. priorities. decades we consistent it

just them. So step through to

our priority. First, it's That's first growing the dividend.

record So of that XX for to years. the enables growing with continue us dividend track cash our

priority. first So the that's

that look talked the projects underway free have about, growth And at Mike when future we that growth we and our dividend XX% supports increases. flow cash the that's really

when foremost. we first cash, that's think and So it of where goes,

of This leadership Chevron when do an of capital CFFO. Secondly is for percentage a to area is of as the business profitable to percentage growth deliver at you investing in the look efficiently. the CapEx and that

this in focused And we so leadership ensuring that maintain area. I'm on

couple asset maintain your currently we our And we are about returns balance modestly ranges. we third volatility the through stay to are historical over a expect within To balance And strong to to but sheet, comfortable as of look sheet the sheet. manage priority time at to create cycle. balance and And an our point ensure and value, is underlevered. relever steady

satisfied financial multiyear to to a we've of is when the the And of through so X priorities, take return intend to of that we commodity prices. shareholders And that's range fourth And a surplus considering buybacks. we view all cash what do.

the side, well. they'll corporate company, time in served side financial serve us and have seen in my business on I've and to us So well, the how at continue these the priorities

And going so in change. my time, to they're not Thanks.

Operator

question Kumar next comes the Mizuho. And from Nitin with

Nitin Kumar

the focus maybe to you turnaround heavy worked on just the had the shift probably downstream want timing. way schedule, side. and it quarter, I best out, a Last wasn't cracks

coming you're of seeing out As markets? that are turnaround, in you what your

touch biofuels? And outlook renewable later diesel, of you economics maybe Geismar for with if specifically coming on what's this year, then can on the

Michael Wirth

Yes.

So turnaround then the attractive you're quarter had portion quarter. capacity online during margins the precipitously cases. more And had dropped second margin as the that in of activity right. We in we more some back some occurred

activity. underway decent. could think, or to around Overall, to of decent as have Most plus demand some Globally, for of pre-COVID up And economic we minus. levels, I we recovered the is timing growth we capture products be of the our didn't demand world. to So is X%. much going product because see, as X% oil

We've East, come system had Asia. in Mexico in Middle and into refining in some capacity the Africa, new the in

of Some coming online. it's

of start-up. Some it's in

level. X-year capacity come all inventories online. seeing over have of the you're risen first at the or And and So half year, they're some above

of margins. of revert see I world, in time, were of cases. back pretty going or this that we view margins we're the towards some what pretty been to And has that's think, Mid-cycle on to year parts by going mid-cycle tough For year. some some and certainly, in we've the period been next tough

these are way credits time transition with the where to by not is which the We've past demand, those. was markets supply of but by value the compliance a that also after policy seen to influenced renewable just a heavily where maybe of out in fuels, through associated driven had and didn't already because targets come lot challenging. are EPA until the year the that's periods of ended, And

ahead the and seen future. game into anticipate get well the EPA to set numbers And of for now We've out people the hard markets. it's

And so don't where now, incentivized, has a lot have and of necessarily got right we've what market is RBOs a that been the we that. capacity match up with

got Welcome at an business. market. of a Credit level. to which you and be for are it. least at values in And the we've So downstream. level need federal prepared a oversupplied That's businesses has value down. a This way my at through margin the career, both much been to chain state work, is

need which we And have philosophy, so investment to do. you capital-efficient a

of and Some been fossil done feed that. flexibility create to investments refinery our renewable have We've feed. forth to and move back between

this. will do like which scale when we're a and you in flexibility. And us period plants, which some Geismar completing you're give idled We've feedstock the project, importantly,

reliable allow will And The that very the need well. to and you margin feedstock. to competitive flexibility in access affordable, to Geismar have it compete have business, will

tough. But supply joint into down. shut the back see it going We margins under of project see time of this competitive got some you assure to portion is probably venture competitive a Geismar. we're pressure, and are And into of to business which value where the where some chain, with Bunge crush helps further underway, move capacity us another bean a periods

other over they'll And time to the then way. tend cycle

are through we're through carbon So committed think to We efficient chain-oriented and be this the pragmatic, in we're future. in times. business. going for be challenging of long fuels the and business And energy times in system the to that reliable very a drop part business lower We'll that optimizing in good haul. creating value

Operator

the with question next Gabelman come Cowen. will TD from Jason And

Jason Gabelman

You and around a portfolio of I I'm delineate most the you've the guys larger you're world, amassed that And exploration pretty positions wondering, about. of out few the think you're out have some years, excited built starting acreage. what to past

plans the year? of any And then that, this number a there's remind related on your interest and region. over small And region lot the market -- that drilling to the specifically in players space, there? maybe what you of Can large that consolidating for about given us in interest a are

Michael Wirth

Yes. Thanks, Jason.

You're right.

acreage that than of more our areas We portfolio held. some are we've have of some added some historically and stuff acreage to new kind that's in frontier

about world. -- I'm I'll we're projects with number I lined the the any and of lot excited Gulf we've where in up, about earlier, Look, excited a We're largest as regions start of Mexico, regimes, higher we got and of move have Gulf leaseholders development as the there. Mexico. of Deepwater And expertise. well the success of these exploration one in success pressure into to we're positioned continue to mentioned

to drill off discovery We've Eastern acreage one We've some is of or the got there. Mediterranean, second got waters The where offshore do delineation [indiscernible] the a got discovery. point plans I'll we've to of a interesting where in well the of we'll Egypt. portion Western

would in And Namibia. Guinea a of some lately in make West then been places others existing interest positions there's like We've would to the Namibia, Equatorial discoveries. where third certainly seen point include lot Africa, one is and I Angola, that Nigeria, and

we've completed be an In It where year. interesting the of contracts. PDLXX, will that the got has Orange early executed construction discovery a made. Basin, just outboard lease the quarter well in of a sits in will XXXX. rig already And this fourth recently which well and we've We've been spud got there

very see delivers. So that what to we're excited

the block Nigeria, Walvis in PDLXX, acreage our are and themselves. into interested in Basin, opportunities to add a we additional farmed of terms to present acreage in continuing In position if there

into bringing ways company. the X of So we've resources got

can discover for it You explore and it.

technology. And can or a receive attention. unlock through it lot You those you acquire of can it X all of

exploration we're talented resource in excited about that them. acreage But area in all adding. got working people I'm Jason. to through of new some Thanks, We've the of each bring

Operator

Brackett Bob with from Bernstein. comes question next The

Bob Brackett

there's your any a had seeing and have a you're from look on on vision in question, like I unique the unfold. of and Venezuela your what we're presidential that ground? a position role range election a comments in election could post And if folks you outcomes? Any an what given maybe in Venezuela, watching

Michael Wirth

really of on our remains operations. employees we're on the ground, the Bob, Yes. is our the our using coverage, in the doing joint safety assets and of situation news what monitoring and and venture integrity the families the focus their

a been in as issued U.S., this for XXX there of under license most last the compliance Venezuela administered We've the years. the presence business with department. laws of We particular laws a as our case constructive conduct which general well their treasury in are by in the

encouraging recent since some recently general issuance of the license. And the we've here results seen most

Our producing have day. around and that are that being been JVs are repaid debt steadily a barrels XXX,XXX We're objective. achieving owed we

We've some the ventures the of of we joint that also extension involved are on some these in. concessions of seen nonoperated

So we not in there help that's apolitical the support can people, best Venezuela develop country found to from and in We're party. government create work power. economy, in swing have the in which with jobs any the get in remain and other it's countries. we And party to involved politics, to that

we a it is that, positions take government. the work us that for difficult to subsequent respect to make the government fact have not but that with that I would continue

role a have we governments. selecting so And in don't

again, not our our We're a And people assets protected. a really keeping on political and focus commercial safe player, player. the is

Jake Spiering

Thank you, Bob.

Operator

Truist. next with Neal Dingmann And is

Neal Dingmann

or vice And recent you the expect for maybe oil while costs seen any team just just domestic costs. going hold you question in or very you firm change prices? prices, see my just to versa? I'm Mike, stays is in so international and if have forward, the wondering fall would given OFS on

Michael Wirth

that's These Yes. broadly good the good Certainly, across vary for pressures geographies. seen inflation easing. It's in And I consumers. growth. we've speaking, think economic things economy, for

different see say, you you the onshore dynamics as offshore. in and can the And

some country or the some trucking. in declining prices We of class onshore, oil rigs, are softening pressure proppant, for seeing in oil tubulars,

Some the are stable. of more services frac

We buffer have a generally to pricing contracting can tends periods longer approach up which sets increases, buffer of the time, index-based decrease. that over also

suppliers for their a resources contracts their look accordingly. plan that big We and So our tend people spot to we're have and things not allocate and longer-term player. to work allow

bit these some so on things they the a down. the way way And of lag on little lag up,

you're pressures. you're right, easing seeing onshore, the But I in some think of

the There's I a little think offshore, bit the in of activity more on reverse. seeing you're deepwater. going a

some cases. rates You're seeing rig firm in

And a legged don't fire We've approach. so over out that any take And the laddered so to that we're got market time. contracted into in not we rigs a place multiple multiple across the simultaneously. They're this so point particular contracting also cycle years. we've one is where they longer-term exposed typically

inflationary seen we've pressure a years the not ago. certainly couple of So

Operator

Jay And question Jeff Partners. Daniel the comes next Energy with from

Unknown Analyst

be potential Is about and just I analog maybe involved to question there you Orange to got exploration in And on of earlier. wonder be Basins? think timeline in us think, March. follow-up an might can is if the back Uruguay, Walvis a This you I Jason's could or I there? maybe that the what noticed exploration But what you update the

Michael Wirth

Yes.

a that So there we the did up block on American of analogs margin see the there pick are that And conjugate off are we beliefs Atlantic. Uruguay. certain side South

explore to needs some work it. that we've to And those theories. instances, so. other supports instances, of Obviously, evidence done seen there's that In less be a lot in

in in also Suriname. some So picked we've up Brazil, acreage

it. Coast got whole South understand of seismic we've to prospectivity the to the that good pretty Eastern some America, exposure and intend across work work So and do of geotechnical

So very I than the and a earlier some an little prospect. into on are intrigued areas been frontier that number particular of example early we're of we're moving by days we've years. last it But is over mentioned more what where that that

Operator

from next with Jiang question Barclays. the And comes Betty

Wei Jiang

momentum, see great Permian. to I momentum want you're the It's operational to operator side. go on back to the seeing the the

certainly the also activity. production this well. same things equipment? the pull slow Or Would time, using about with you less ended given do on forward Just up fracs equipment? or how front you're cycle down to of likely you think and would And what curious of as curious acceleration royalty nonoperated triple more your and seeing about

Michael Wirth

Okay.

that -- across And Let the a across want and we've the been and that. to of of been nonop the of all call seen with all if -- strong me the year those spread portions business to this got it's continuing it, has essentially acreage. AFEs JV. our performance company-operated, first. contributions year upside X you royalty see to royalty start from this line We're We've sight

consumables We more Permian, these a you to more contributions When get lateral So those everything accelerated X. through strong sand yes, of and activity. more have We use wells. feet. we get the efficiencies and from feet do We as that. complete

on easing of helps that. us offset inputs cost pressure the of and goods Some of

we so us expect And are capital. manage activity trying to can -- to we're out balance and to going you manage numbers. our CapEx to And

disciplined the on capital. a budget on to to stay is -- very budget. We're not We're to going off going races get

productivity of of cycle So -- we're nice -- thing we're getting the improved improved times, efficiencies, more getting because equipment. out the but is the

So production here. the and really capital per input, that of more getting we're unit is story

production So guided [ we our remarks. our as ] expect you guided and us prepared we've at can to $X capital as in close have the million to land

Operator

And comes from question with JPMorgan. last Royall our John

John Royall

is And Wheatstone could color on the source Gorgon my planned in you Gorgon including you What the for the So both XQ. how on facilities those are color saw the some called question XQ. And some was just give now? and in outages? maybe out downtime if you running work of

Eimear Bonner

John. Yes,

in So associated unplanned events was Gorgon and with upstream May the June Wheatstone. and downtime some in in

do So the when possible. there some they on a They as time to try figure, time to and were take that. [indiscernible] was much to going used repair they and as so maintenance Gorgon, had

leaks repair On that gas always excellence. of any an the Wheatstone, and And the pump spirit actually they operator. shut going operational a down leak had discovered we're was to by in

back was It running. So fuel things the that. got they and up system repaired on and

good assets So the quartile safely performance. of repairs we both expect to were with this year and reliability those top And run with executed still efficiently.

is really turnaround [indiscernible] underway, that's as Gorgon currently going well. and The

planned under duration assets. despite downtime, the even we to Australia So deliver full planned the that the expect and this with year to for quarter. we expect close or And in production the come on the combined

Jake Spiering

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

you. to back Justin,

Operator

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

now disconnect. You may

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