CVX - Earnings call transcript Q4 2024

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Operator

Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's Fourth 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 Head of Investor Relations of Chevron Corporation, Mr. Jake Spiering, please go ahead.

Jake Spiering

welcome Webcast. Fourth and Conference XXXX Katie, and Call you, to Quarter Chevron's Earnings Thank Spiering, of Jake I'm Head Investor Relations.

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

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

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

turn I Now to it will over Mike.

Michael Wirth

position year years outstanding joining America, optimizing WPMP reached and Thanks, and Gulf strong growth Jake, maximize of future in completing PDC and Energy, from in everyone, achieved and growth of you, XXXX. performance nearly and globally long-term This Permian, exceeding the project oil week. record swaps the underpin States, United key XX% achieving our production in future the cash thank flow. milestones expectations us in the year. for Delivering TCO start-ups today. Chevron production, asset with the at both at that delivered fully value, sales another integrating are portfolio project includes through results We to of last in key DJ of that last first expanding our Basin, expected

and We also returned a record cash to buybacks. $XX through dividends billion shareholders in

we've years, $XX and outstanding billion X past repurchased XX%. the count Over by reduced our share

and foundational business our of CCUS over and barrels of lower energies XX projects hydrogen. in sold advanced build operations. projects diesel carbon to we our new and bio-based continue XXXX, We intensity complete the In to million

COX over abate emissions annually. also We projects completed to XXX,XXX tons designed of

over the financials. turn to over go Eimear to it I'll Now

Eimear Bonner

per per related charges. fourth totaling Included $X.X Thanks, billion share. $X.X items billion, quarter share. in to $X.XX or earnings $X.XX impairment restructuring of Mike. earnings quarter the special were Chevron were $X.X Adjusted or billion, reported and

long-term $XX [ our year. Compared new quarter, investments. adjusted In impacted CapEx and CapEx energies year mostly ratio priorities net the through commodity strong and debt maintained ending a by repurchased XXXX, while cash efficiently, we upstream billion of was to We organic to generation have nearly aligned related returns asset long [ obligations with have Foreign we including timing were balance growing sales, and revisions chemicals dividend the a X% [ $XXX outstanding, and [indiscernible] were organic for asset double-digit ]. million. Full of $XXX and XX%. Chevron's and value were and acquisitions In gains due earnings our Adjusted refining for in shares year million earnings $X cycles, with with long-standing of increases last lower financial $XXX capital. how capital year-end and proceeds ] for continue success XX.X% million our maintained dollars continued rewarding company from allocate shareholders. margins to currency with budget. by Adjusted shareholders. timing actions multiple to lease of ROCE downstream stand retirement we'll lower govern valuation. investment invested the adjusted record the production position They to earnings created were inventory X%, sheet, track generated effects. Chevron's softer of effects guided ], billion to

a most Compared discipline. commercially. portfolio announced the in in of XX S&P Today, per value competitive Only an grown shares, debt year depending net history is and We've we per capital, billion to repurchased share. We're XXX, sheet a XX billion X in the dividends the increase and committed maintain The X% our where $XX dividend, excellent assets years, projects the to our generating delivering compete shareholders. returned annual a Over less will we're years, to health to with marking for capital conditions. funded, XXth increase $XX and have range the year to with last we've $XX our balance more past get dividend don't dividend payment to on buyback in via of than we market cash peer. growth years, double our past of to of we've peers, closest X faster share shareholders with capital billion below the rate the nearly levels. consecutive returning buybacks. our In intend the and cash historical

Mike Now outlook. to to near-term I'll cover our hand it over

Michael Wirth

in to strong Eimear. is with and today Thanks, are drive better XXXX. near-term performance XXXX Chevron a that even company position in to the catalysts expected

completion of renewable transaction important advanced cost to quarter, Hess in note while hydrogen, third safely Our strengthening and X unchanged [ ] the flow years, the that opportunities the achieve including lower guidance we CCUS industry-leading portfolio, in to plan and next fuels, maintaining returns carbon. cash discipline. It's and higher growth. further our deliver to is capital objective today Hess. expected provided excludes power, In the the free

close to continue host position Investor flow outlook confident be this very growth. plan industry-leading to the Hess's after arbitration. later next transaction is cash longer-term free year. Chevron We a the we for in We our with Day in poised

to portfolio, the forward. In growth With CapEx, expect the the from additional growth and of further from annual FGP production asset focused expect a we stronger by cash billion on growth and add $XX for deliver -- important going distributions teams. of anchor bring plans continue margin structural and $X whale ramp our in TCO, Gulf to portfolio, week. positioning company. in project as improved as highest free in cash is of result oil increase we And the we cash costs of Downstream online. disciplined advantaged generator last in America, billion Chemicals will across where some our [indiscernible] sustained affiliate milestone the businesses. At more execution first and targeted annual to savings we billion led the have We flow up, reduction $X returns barrels and to TCO FGP free assets. entire produced in operations cash cash in a also by a flow free XXXX, additional in and reduction in We're upstream and in our flow, executing consistent efficiency operational core results achieved from we're Permian, at including the This the

Our a adds of the barrels plant. of safe ramp-up to reliable focus and oil FGP remains on plants. capacity XXX,XXX existing the production

billion We free expect [indiscernible], dividends. of is fixed day XXXX X per includes rates, to next X production Chevron cash to $X full achieve equivalent months. At XXXX. billion million oil within and in $X barrels and quarterly expected the in This repayments loan flow

shareholders Republic of this to strong online the business collaboration Kazakhstan, and project to [ value bring complex of achieve look to efficiencies reservoir. In forward for record production. to well the and helping are performance, proud ] We large XXXX, our another for led the future execution Tengiz base us long-term the maximize Permian benefit and of

delivered XX%, able efficiencies. X while capture company-operated continuing compound than and last optimized we've XX% with to rigs improvements production just annual to the levels achieve included completion our years, growth drilling pad frac, years ago. Through few and triple these we're fewer designs of Over like a plans

durable and in of million CapEx to day to predictable free generation. We and oil cash XXXX in X per reach to growth flow plan equivalent barrels moderate expect drive production

technologies sub-basins to continuing acreage and of line. delivered to all to Our We're royalty Permian across returns bottom due and develop the superior advantaged enhance deploy to recoveries. adds top both which portfolio efficiencies and the

strengths chemicals scaling [indiscernible] our stimulation our are portfolio. and We advanced shale [ leveraging in ] across and them and

queue and plan we position ] development at of has full grow ability expect asset we shelf West to the growth we Our We back of and keep will first to had anchor developments to connection for year. is Wheatstone, of upstream [ the leases infrastructure. later opportunities a low-cost Western to America, enables world-class poised announced decades. are Tamar we that have project, a provide Last production we extended projects LNG asset oil to Gulf continuing resource to expected years. discovery expected that Angola end [indiscernible] further sustain in to In the at value plants oil where increase through In gas online in barrels our come this are that day, achieved Africa, XXX,XXX Eastern our expected the and we deliver our we're Angola, online are Mediterranean, production a recently assets that around gas South online significant discovered a the decade. for development which come monetization. In and first middle and year. In we and Nigeria the decades. resource our Leviathan long-term an for achieved swap the many to In unlock. Ballymore have the bring equity existing Expansion to projects will tie of the at Australia, to month,

our We're projects and expanding at extend the capture synergies Downstream our Permian chain, Pascagoula refinery on executing chains by efficiently our while integrated refinery. expansion our enhances to Turning completed more reliably Chemicals marketing value business businesses. operating more with our and supplying products synergies. to ] value market focused and Pasadena [ competitive regional and crude, running The recently that

and more positioned projects structures flow to XXXX. are projects further contribute expected well demand. growth Our serve growth petrochemical cash to beyond cost XX% Qatar in and are the competitive advantaged, Both have are feedstock U.S. growing than to and complete are

behind-the-meter carbon plans we refinery. operating this and over our centers. over generate plans to scalable, capture to and pathway capture growing of [indiscernible] a a key venture, processing several carbon power product In Louisiana, hydrogen The next in renewable will we're in and projects ] the fuels joint value have largest excess technologies integration week, capacity. In our lower world's to reliable fee our with gas hydrogen to our U.S. electrolyzer in working the the this new this water greenhouse achieve exposure reliable we're stored project is storage through in that power, and that X expertise energy plant final construction in from developing emissions power for and and and to the milestones the competitive commissioning increasing at underground offshore projects diesel and Bunge solutions will renewable new time. We're in across gigawatts fuels, hydrogen years. which also building and at data develop reduce growth is the the working megawatts support And continues start-up towards renewable Utah generation. Green Geismar for can announced renewable jointly natural dispatchable expansion. from project towards store returns our of experience business, XXX expected business storage, U.S. later have chain. of [indiscernible] in of decision produce provide demand to of is one Energies help year, We are gas Pascagoula Earlier from X power Chevron positioned nearly in COX [ participate oilseed

X as ] We purchase secured from to with GE engaging beginning late Eimear XXXX. customers. selection site deliveries engineering for while slot look our to XXXX close to XXXX have our [ and forward reservations sharing advancing to more Venova gas-fired natural We work it out and hand back guidance we're develop. I'll plans turbines and

Eimear Bonner

worldwide business, matter. ] and In while Thanks, TCO CapEx down, range. within spend expected and remain while the targeting Affiliate billion funding and was capital Basin to in A budgets sales, $X and costs year, oil down growth. in asset our portfolio equivalent nearly savings cost efficiency to capital from billion these capital $X the of and in the production CapEx following absolute online. We're is as our to lower the trend CPChem the and growth XXXX. Permian within further discipline of comes short- Mike. our continued CapEx end deliver cost to expanding by scaling use to we is a structural Work work highest Gulf We're position America affiliate the of Benefiting at of $XX to improve is cyclical plans to Chevron's $XX in billion commodity where PDC executing efficiencies. technology XX% support robotics, our [indiscernible] long-cycle our such always how growth. Last history. will investments. Organic a commitment [ Energy solutions, through to DJ out expected in underway flow to and Permian. reflect portfolio CapEx larger balanced reductions as of guidance come acquisition investments billion the delivering the

returns projects grow to annually year towards expect in new growth energy off expect we while of production through proposition. I'll value solutions, key In higher around about now come teams Gulf shareholders reward growth and year. We're our sales, costs, to starting our a and America the XXXX, the XXXX. and value and differentiated hand advancing We're focused power X% half online continuing the we on behind be of projects second with delivering the the weighted asset ramp advantaged the meter reducing year assets across profitable to throughout Jake. Tengiz and absolute to ahead. as excited and Excluding [indiscernible] it

Jake Spiering

That concludes our prepared remarks.

be can in question. found other the now information the ask and one questions. appendix take limit to and ready your guidance you slides posted to Additional to this on presentation We yourself chevron.com. We're that

will please answered. the all Katie, your We of questions do best our get line. to open

Operator

We'll [Operator our Biraj RBC. take Instructions] question Borkhataria first from with

Biraj Borkhataria

Firstly, getting a congrats I its FGP big online. on know project.

flow, to about excluding So ask cash I working capital. of wanted sort underlying

This our was billion model expected. versus least quarter, with we quite $X.X at what bit the a

should basis in XXXX? as walk And So I help me there? what me think could just you we how sort any about about think underlying one-offs understand the through be of should

Eimear Bonner

question. the for thanks Biraj,

capital, some Cash and accounting flow, this past working by nonrecurring impacted items right. quarter. excluding You're was

you're big let some sale, was is completed charges recently related important and first at these to tax charge. through recognized that note going cash that if still tax flow, charges billion. the we So $X.X and capital the me to to when working looking tax you Canadian capital. offset the It's you see earnings But in ones. Maybe are our exclude around working step you're asset that

a one. main That's the So that's big one.

some second items. capital we quarter We had for December our the recorded as The in and them earnings, back is identified release. in we charges disclosed one also those special that

items adjustments flow. and we make However, same don't these the for cash

line, that flow to the and million So that's about a $XXX through bottom some of headwind. you're seeing

Beyond that's those some activity, affiliate combination distributions, and have some we the unique million. of items, did impacts, two $XXX commercial other another

take the cash consideration this when the to So elements, into you X up about billion add flow for that's quarter. $X.X

Jake So sure they're everything got I you and pieces those this additional with up after if Thanks. call can a you've you bit mean follow any questions unusual flows acknowledging through. the quarter. how on

Operator

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

Paul Cheng

X next we're we looking a comfortable. have investors at When think really and are think your outlay good years, I I

longer you the project terms we I think stream? in a and solution Angola. bringing But I [indiscernible] here, lot term, say, those about side. And turn Nigeria had the those where opportunities you're question has order for you example, I to of talk do to for can talking to coming discovery what about going mean if decade, put guys there? you are in always [indiscernible] on your believe in What set been need there's become we already that of in that half have made the and the by [indiscernible], of and we having are the a how big opportunity

Michael Wirth

the there's of And you more right. confidence frankly, thank be flow January during X visibility next is derisk growth. laid significant of are you. month detailed cash Paul, here Okay. with the the look FGP as to growth. wanted start-up, you're What really that free today that two the We that. you we for it events out day startup a And note, every whale lot years. significant Yes, rightly provide a ahead derisked to and on continues and more

objective was transparency strong stronger. that primary confidence that. And aside, that will just and closing which so we set provide in look I'll And I even a forward make will Hess Hess, to the hand acknowledge but is

the in this for the that in be come upon Leviathan, Eastern continued -- there the end that at stronger growth. but big on Argentina there, And than 'XX, macro will things ramping far. towards construction stability into particularly of contribute year policy Contingent Tamar that's of then you further of We've 'XX are both end work come cash expansion and the a number grow half are encouraging near and the expect a environment positive. Eastern we've early chemicals over Mediterranean. I XXXX, of time 'XX kind out projects in Leviathan and got are will late underway, the been that If we've begin look the decade to this in got We've there of seen beyond government yet have projects continued and that another to back free flow two to going stability beyond. progress under term at signs thus to window. got online rate for Mediterranean would and and what

number talked You mentioned Angola I West about the Africa. [indiscernible] There's opportunities. a shelf, Nigeria [ South of a discovery on ]. gas,

We there. have a of other number prospects very attractive

each our Angola, in region. the a lot additional up We've opportunities blocks we some ahead expect portfolio, lot Africa a left are of and We we long-term Mediterranean capital competitive Africa, become been acreage decline us. Venezuelan the new that nice huge we've but huge, that Eastern we in haven't room And underlying that about technology America, portfolio. offshore haven't within years of things. of very to and X present opportunities. We've running with has U.S. XX,XXX really particular got Partition resource yet produce West provide growth a And those now. undergoing got large really other can that work attractive. feet good for low rates. in further picked gone very unlock South West course, moving Gulf, seismic thoughtfully things talked Zone, given to base investment exploration can of reasons those resource locations, a In right sustain that below captured And of We that can a but recent that are the positions.

We're in we'll those there within disciplined on times, beyond of out growth anyone fund would the next XXXX tight seen plenty right. Last [indiscernible] expect there budget. X% that a through and are That's But of capital sort not the to of best guiding year's opportunities probably continue. and So CAGR for X%. in the years. rate a couple recent outsized growth we've growth a here to

Operator

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

Neil Mehta

earlier a being Just XX and that about Mike, tricky points. But at different to better Chevron you're talked true competency. that announcement power week wanted years GE power ensure the understand lot seen the and to a and core business [indiscernible]. this from over to you've wanting last the firsthand with business, staying your

do playing you preserve that think how in this upside? you it and you the so ecosystem So that derisk about ensuring can

Michael Wirth

Yes.

solutions strengths you, this to which said So and got Neil, what of to large-scale I do, generation should would our is to energy a carbon to integrate scale we've do required it build how of know think very got world. operate at We power backstop with been diversifying to at that gas large at to capabilities We And we've nearly We and very, for know And a We've meet growth you U.S., the position. and with looking today advance these how as are in assets we've aligned markets well. Gorgon, core customer. some demand to this. In technical operate offtake. gigawatts power lower power reliable leverage X allows some our being very of customers. premium we this the us TCO investments were tell to and refineries. operate natural LNG gas

something not returns We right from have sell said we into Building probably now. power and but high just delivered merchant demand player, scale portfolio, rapidly grid as don't. power power our and is that's didn't with in at to going a envision to merchant generate high that's is reliability deliver still competitive ourselves customers offering a the we

make -- a that they're [indiscernible] meter thing the on that's of are recommissioning that understand in end front beginning this it. importantly, not people sense country. And the whether You with and to already base surge what GE it be doesn't electricity now been the is these the give of that it facilities we really tax in 'XX we got familiar the demand what stands costs challenges reservation hyperscalers into and turbines investment then customers. something you would grid of And understand for this ensuring and will with we for does good year supply with sense this on the us. We're power well. put the can behind and largest call for we've discussions the of rate I real keep right that Doing late we've last some for expect reliable And on value economy done distribution nuclear as 'XX, off more PPAs think we I'll the of slots the think that things engaged see in say in into deliver the X and the or like delivery can drive most to for into further can looking been or for it and for have that doesn't and cost in this grid a country infrastructure, tax up be consumers faces today. have as and

will that's is power this can to leadership. good intensity. for customers. big lower keep to AI will They're options help reduce the and for So for and rising rates we solution looking America. to something deliver it's fast public. this It's good American jobs carbon and good abundance ensure help eventually the create carbon for think Energy and reliable it It from

Operator

We'll Research. Leggate from with take Doug next our question Wolfe

Douglas George Blyth Leggate

it's did Jake a I'll I he assume A can have one it. you and blessed I a so Part technically Part but warn question, hopefully, B, may --

to is but I I I could under you XXXX -- wonder wonder it's incremental guess, But the benchmark against just bridge the what XXXX, if February on us conditions. really in helpful. really, enough, So gave obviously, you disclosure never similar

news great you couple of the better I days does incremental But terms. government XXXX including the but that guess, What gave think So look what is for actually here. Kazakh the the like is on B extensions, what the on which obviously, is ago, the about Tengiz before? And story debt wire is talking I us big contract potentially, payback? you versus, a Part XX, is in

you there wondering just on if was offer that? was I could color any So

Michael Wirth

Yes.

flow Eimear, free talk cash take for you So the why about XXXX and don't concession. then I'll

Eimear Bonner

aligned it's previous is with answer short The Doug. Thanks, the Yes. guidance.

then, and takes. there's really reaffirming that since guidance. we're some been puts So Obviously,

guidance. got out assets of beyond last -- [indiscernible] But primarily to see divested price been we and be We've online assumptions the There's have XXXX, CP out some PDC changed. we since well, that. we've Canada. side, as portfolio We'll time. the Tamar about the underway. that ] Eastern to feed will are XXXX. Mike got have that, after reductions and potential $X projects potential. Argentina [ cost billion brine that and And power then $X Leviathan [indiscernible] structural some that there earlier our projects will in some in growth come billion do to Med We've the around today the On talked addition growth of that we've

short maybe been answer since aligned. we is the the few a projects have So it's ago about But talked many then. that of years derisked also

So we'd expect to later the provide outlook the on XXXX year.

Michael Wirth

the a life in still focused important the is reliable. that on it and to signals Yes next safely of ramping up Okay. phase concession, moving This milestone, and field. on the Doug, really we're

we're right. Early stable and so that has And on been absolutely very performance laser-focused very getting encouraging.

We've really As extend focus a complex to certainly the the plant It These has to as for has evolves negotiations. contracts, complex shareholders that our competitive. to And to and time. we we'll future. concession, our posted turn the the work then These keep reservoir take and you world-class things to our and everyone. got for It be company we'll see performance, work but are to be long would for Republic. we work time. has over like This it proud able get in the ramp to is and asset. Kazakhstan with TCO through partnership the up to a history has

two was completely unrelated way questions in, get that And to clever Doug. a Okay.

to So if ground I about Jake's Jake, rules in have blessed talk that, to better the future. the

Let's go next to the question.

Operator

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

Devin McDermott

as Mike, I wondering there, and address talk orders through flurry your the the of in news could series the executive your could then would U.S. a know I over and energy energy-related I wanted about large week. through There's been given the you ask response. some you I if license, also I'd operations, of you There's a flow we have it. past especially to was part love your Gulf of this in some lot presence how impact gas thoughts. new now in think the to over year? last the and you that of unpack opportunities been might if Venezuela policy. the appreciate but headlines oil

Michael Wirth

Yes, related lot is Devin. for a But they're you. all that

kind let of at at highest start the So me the level.

security, really I've the of allies calling economic energy it's discussion prosperity, world, all the the and And our do in dialogue vital need for toward now benefit economy, I for and more the the way much a our for encouraging it's environmental and which past, finally all environmental energy protection, in that to and of now, to see a protection. been reality And mix it. acknowledge. this country being We're intends a years and part the beginning brought For security We're seeing that see together. the others. that we energy. an in balanced It's skewed change good in protection for and is toward recognizes reflected. gas to to are welcome our benefit conversation think of abundance this oil to less that see a And also about provides a the a leveraging is administration energy of that American intent benefit on environmental

a balanced think more it's approach. So I

specifics I think taken. a be review And remain it's to agencies of look orders Many welcome can approach. to still to these that executive actions at the out. things, direct play

regular in our so think, is actions, where encourage building more States. not instance, access, is part, sales. There things necessary, of to for for which reform, industries us, many build other for actual to United more the but expect permit for it's just support very bipartisan difficult most ahead I remain And for industry them but would I lease here become so still the

quite one for assets policy. I comply them on that anything. to ground an we of We operate our there. country the to And administration, so question, Devin. it's can't much protects potential on time only laws, sanctions Biden for the the in and Trump We're all think company with safe, the a don't around policy during issue inform has laws. first reset Trump that focused again, will with on set do help so. been Venezuela. Venezuela that more keeping a administration. of some benefit and from. I exist with the U.S. impacts our and second environment complying We're the is Thanks the the during government We the And ensuring continue about welcome term, we'll that the now and way people choices, engage in

Operator

next with We'll from Richardson Stephen take ISI. question our Evercore

Unknown Analyst

position if of was you the the in portfolio. talk about could wondering Mike, I Permian the

day that unconventionals couple we do X you this think the the maybe size Do in there over total Analyst than corporation do talk there was like hit I if hit about right Permian soon. that it you're the think about going got production? about of a of little looks it haven't just and a of the out last the the you previous of a right And the Is you portfolio? next years? think in we target higher it to How target -- amount it know to And decline Day that. Can million-barrel the You've the for was unconventionals is the DJ? curve? pretty already relative amount about

Michael Wirth

Yes.

barrels and with Permian quarter. million XXX,XXX the We the pleased X in in December. start. delivered over let team our in again So fourth me really fourth a day We day the quarter. performance barrels were I'm in a the

and across really, aspects see all strong to year, XX% bring or XX% still to X% started of even grow our down. We the production now we we've full growth expect continue we've as XXXX. Permian. of to to And performance growth investments, expect peak passed really capital saw For investment in the a we a and

probably industry decade the you to that. free last do And our we're position to focused a that, infinitely. point, little lower flow growth. than of cash focused is plan always headed bit the only And growing, like criticism they and on towards rate XXXX. of companies And can't on a been and was returning some at never that's That just grow generating less in this shareholders. a Something

can years maintain investment off produce into that free flow over X And barrels really future. that to with asset. for the So we'll capital opens we of a where lower we've we a up required asset are, get will rate many, that an have the to of something as that than million day many cash

with Basin, of Bakken. in is pleased DJ hundred thousand plateau of in flow barrels got that. we draw free in cash kind the phase or now very day, XXX,XXX are where of a day we a There's So the can that. We've which couple take another that give closed barrels Hess. We off

Argentina X.X produced million year, [ day bring you're talking a in And now or change. and You we barrels ] X.X in, this so.

of the XX% thing that so production kind CapEx hold and And the And can generator. that some portfolio. that cash very use big about that of nice for as modest a is you time it's quite flat

is that that, recoveries prospects out. on economic of I if improved the a certainly wouldn't We're intent. There's And I see that to growth. that breakthroughs. the to so working could predict rule open always And we but don't that technology phase want want new

develop top can highly and this and extend get plateau, better long generate cash that kind on to we so the position we is icing the at we as plateaus, the of a core better improve is will and the future. And we of that raise And in recoveries, cake. into but have asset that economic to advantage production course, this of Permian, a that could is technologies continue royalty

it. it's overall is a Steve. approaching formula, magic we a think I about like Thanks, -- But a how give that's can't percentage. XX% of you which significant it's so said, our production, I And piece.

Operator

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

Jason Gabelman

I else, second ask XXXX and I that on something to TCO, own billion just cash OpEx $X the to and operating expenses guidance free billion, back like gone $X or up price the looks down? your at wonder and detail have if $X that XXXX it I'm you based for that's $X similar filings that distribution, flow in sure something year. if the about I wanted is barrel. contemplated but distribution further this from to come that's or appreciate their first related Russian TCO's The 'XX $X to guided and not is TCO a at billion to respectively, war for in -- you half the increase billion if expect previously higher half and 'XX, to about between deck? And to of the a

Eimear Bonner

that The that. talk inflection can has cash asset coming upon which started now to up. Jason, actually the yes, free us that's is I flow -- with

slide, for So billion obviously the $X is we coming $X and but billion shared there production in the XXXX is contributing for affiliate CapEx XXXX. What's also the down.

So significantly. with the is reducing project completing and the affiliate CapEx

free resulted flow. that's so And the cash in

focused that anticipate OpEx on will the as safe that, given as new they'll million that day that reliable the base completes of also We they and the [indiscernible] operational well X have. and be barrels gets start-up and a optimizing business plant

move little down OpEx But we around bit a year. generally, can the there, during that So too. have coming

to So are those flow in things production. addition free the contributing to cash are that the two

Operator

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

Alastair Syme

to [ just I ask Bolivia wanted ]. about

you've a failed to want of different make good again why sense to a If and enough exploration location? first well you've seen got go in whether you

Michael Wirth

Alastair. Yes,

in that need The first new And well. a oftentimes, in first was lot new well basin exploration, information. the of learn particularly relatively you a you --

well each to is a learn. of actually the And happens be you're failure Failure than objective to hydrocarbons, while so more not. gas is and would oil real targeting And learn defined the failure often well. --

blocks Orange so in have very on And position the two large a ] different Walvis and [ we the basins.

aware, their on well people As some have found are things encouraging blocks. others

And basin to activity. of and the future future that use pleased that that And to geologic understand structures and geology activity, we'll is petroleum And so how part inform exists helps it fundamental us information working there's learned. evolved. a the And depositional which does the we're inform history with the system that there. we very it of understanding

to to are we say enough be -- question heard I enough, it's say enough interested. interested. We we're continue not not not it's your correctly, It's to if

that The some you the is lower other that of wells I'll in very the just thing tell than seen other we've was well The cost area. down fast. went much

we that environment very in execute the there manner. other we And one that wells encouraging in drilling so that can a I cost-effective the well very think learned thing is is and keep future exploration

talk both program. we those steps more continue basins we'll evaluate to as evolve to you the of in and next our So

Operator

Barclays. Jiang take We'll from Betty with next our question

Wei Jiang

really to I I related able impressive about about capital think the secure the how you do go want turbine is to that ask venture. commitment for Power high-demand to to these spots. back that were want you Chevron venture? to It

So you capital have for the how deposits much to them into would all put being willing be made it? and equity just

Michael Wirth

on Yes. as the Thank joint the and the like. still into details of Betty. we're public move phase of the next site selection engineering developments and we of days, providing you, not It's specifics some early and

be this. just we We are, that call are reservations terms one have CapEx more changed thing slot won't at that. The that's and appropriate on we'll again, will haven't partners detail have the XXX% with secured of the to that And investors. funded those payments. our And want through It confidential. provide is I other we guidance. out We time do

an queue. the this seeing so be intend price portfolio. competitive CapEx within scale. We Gas in early in things We've opportunities benefit issued. you've that we've of got develop generators the pressure. got And guidance are our And other upward will done that are with to here, turbine the position

the the early later so to in than queue And in queue. be it's better

value capital value on delivers project focused and for be we'll and efficiency shareholders. here developing a delivers so that customers for And

So stay tuned as for later evolve year. this things more details

Operator

next Piper Todd our question Sandler. Ryan take We'll with from

Ryan Todd

America, calling or could it the if I one Maybe or ask whatever of we're on Gulf Mexico, now. Gulf of

X the have performance you projects what What -- and XXXX so seen far? with of Ballymore coming time online X reservoir period XXXX terms of soon. I in what got now for mean You've the guess, have on side? terms basin? on both the you the kind these learned and how potential I does in it facility subsurface in inform the future you for the from developments, And on of

Michael Wirth

the wells Line Anchor. story two drilled a got fifth we well hole very well. drilling fifth in and online we -- the We've the and second ] is The third We've Yes. and work wells, the of on [ ahead top had early expect come quarter. The completion wells section XXXX. to and at in a remaining we've got Thanks, performing fourth got well are top holes short Ryan. us, drilled, that

one which for able are drill we this new industry. complete temperature at is expectations. Reservoir is a to above regime, performance, the in So frankly, pressure and and or

holder. quite -- acreage the [ lot technology The We're many let developments. our very of position costs as this prospective operate the acreage lease to of There's a you it's it ], We've important that. tiebacks. performance Gulf update room and lot that's be of government we We've out we're we're to large we'll that to there's I an you And that years to pressure I brought And also think online for down out of I calling in see here on update of encouraging. Whale mentioned, -- And for for the encouraged. On Ballymore, And would operator now. of But significantly. It's U.S. advanced there. greenfield running them many, producing different going you country for regimes. a Gulf for so as basin midyear, is that. come. prospective There's a specifics is refer and so the America.

Operator

Royall take with JPMorgan. John from question We'll our next

John Royall

wondering mentioned, do just in your update improvement can Med no seen growth political through a the some [ operations significant world, in the was working in are situation that that Eastern about just an and there. guarantees you you ] So and forever. But as I there. there if you're Obviously talk have project of today that's part Mike the

and an just you're on maybe you as it your how about So operational there update the position see risk today? feeling

Michael Wirth

Yes.

there's real change to plans, and there. for lasting piece region So diminishing people of the all, first is headline The a we're no our really see in John. tensions to pleased the hopefully

be the the to of the end conflict. to come year execution in early complete Leviathan remobilized was during XXXX. Tamar are here this that will and of vessel at both it projects the a of work into online was underway. the pipelay kind that expect had or half vessel during the first height year by We demobilized That There of that

come that Still be So online would that's but those leg this expansion. for done production significant a two after growth a up the would of to for currently in that It asset would and towards the project the a next decade feed to in of production Leviathan Leviathan. be on that. work end be step projects We're significantly. continue growth

and seen XXXX. So we'll despite XX% something over closer that we've the up by to X in the production activity XX% next region, by all years see

Operator

We'll Ann Bank America. our take Salisbury next from of question Jean with

Jean Ann Salisbury

exceeding expectations you tracking more is share about or to basically have might to ramp The and even them any debottlenecking potential? your when potential

Michael Wirth

Jean, debottlenecking. off and about you're Were -- question, partly part and your ramp you you mute I the came about asking into caught FGP

Jean Ann Salisbury

yes. Yes,

Michael Wirth

Good. Yes. Okay.

into at week we're look, bit a point. a this more than this So little

process are operations crude And I so complex it's very and stabilization, is significant. stable. fractionation, This temperatures very some been early high-pressure sour will have the obviously, injection the pressures with big days. gas and that you, operation But a tell

encouraging. And so seeing stable operations is very

that we and operate are or just all step the have to have point production that operations. We'll reliable concentrations last met that with reliability. expectations. We is in we've that field seen significant this feel we good performance but the well and step year, there. still deliverability up. The about completed we And sure of zones things what work gradually exceeded stable has strong, that been instance, terms has up stability be of number in a we for see to beginning very HXS and people minimize to We that very see maintain to in place, exclusion plant the

encountered to And will say, that up so the methodical all positive. what raising things normal in would are full be well indications, And very and in a the plant range see are capacity. But things we've any I production levels this. deliberate it be like within would of you start-up early

question can we a focused plant on We're the this right getting to probably for most more follow. Debottlenecking So of future. the now. is out really

I'm the lot FGP. quarter next on at we'll on performance to say that. have a you update about call, we'll so And certainly

Operator

question next our take with from Paribas. Hermann BNP Lucas We'll

Lucas Herrmann

a clarification, point Mike. of just Really

around You talked about with the Wheatstone, with transaction or Woodside. Wheatstone

When do the of better a returns talked the think look you capital a it insurance In might better talk do just monetize, also talk mean phrase? about returns out in you if you about to mentioned potential you You I other you Or take I facility volatility about of with ask -- monetize. one monetize way positioned essence, [indiscernible] have? power that the you or question. to you fund? And on resource some that adjusted when monetize pension do naked, business, imply

Michael Wirth

got that way good We've the for of resource a only and plants the in resource we're that's but interest Thanks, a got Carnarvon control Look, smaller us them We've talking hand Wheatstone to a track on things. We've going Gorgon really in economic, this we'll come. gives Northwest and Barnello tremendous in monetizing [ also Basin and Australia, time. bigger And not to there. in over optimizing record Lucas. had Woodside's strong in Yes. more amount a keeps high for out customers, both that the and that. project, ], exploration our resource full, important, over other expectations to acquire Wheatstone, related good about interest for Julimar that's and Wheatstone that we're and shelf over through many some stake is decades for

down And position contemplating bringing driver. a sell to fund really pension the that so that's or not We're like in anything there. our primary

we Yes, The volatility gas have look, yes. second question in about your second was business. a our question and part returns or the in power, oil a of

gas across obviously We place large have gas have marketing capability work natural to we a supply. volatile put refining got the commercial and work and value a We've business. would gas chain. for for in look us. customers PPAs We that natural have producer And as natural

help aspects looking But exposure a can way associated that is and in and that have we to to look we business, we'll volatility if we our with look similar how encounter Lucas. volatility. that's it's they're our other potentially for. at what for how consistent manage use investment that of for very things other customers at volatility it in so And Thanks,

Operator

Josh to Silverstein next go We'll with UBS.

Joshua Silverstein

assets bring and Maybe your margin other chems environment product Anything We're projects business. the that? leverage improving a like initially you that do things to some weak to recovery? there in right slate some now. challenged? are than [indiscernible] or reductions, refining some the turnaround, improve maybe [indiscernible] forward Other and guys Maybe doing the be that switching might and environment clearly cost to price

Michael Wirth

of to good Make to a in to spent sharp handles I it the pressure friend, make different career kind cost feedstocks, like. more channels ways would the stick business, like into people in the for and your got my of to nothing via different your your spark familiar products is customer via the that a optimization feeling and And little right I improve having go say. continue a the sure does find market flexibility operating and Yes. of end reliability, find product you've structure. part all guess, to margin innovation relationships market there's

certainly things, do think those I all are we'll looking but be all those so do we looking looking should we margins are when good. to And be And to of things do to point fact at would to are that. our when margins oil example now we're increased good light capacity run that difficult. I Pasadena a the to is refinery. those This of

otherwise may can production So that move out better a intermediates by conditions Will exports, reliant we we our optimize refinery. thinking other system. Pascagoula can versus of on market can and get can integrate products on of some and into with turnarounds And the some integrate be those our others it we supply upstream a needs. two our market where netback that might storms We for of instance. as during to marketing produce we channels

downstream. are margin which efficient ability for flexibility that, we'll your so in outcomes increase ways your capital and And to to like continue to opportunities control look own the

Operator

Sankey question Paul our next take Sankey We'll with Research. from

Paul Sankey

Mike, thanks everyone.

Michael Wirth

to Nice Paul. the on you back call, hear

Paul Sankey

you I how you and further be of I CapEx was just wondering potential, is corporate cut range test towards and yourselves lowering the it do could would I It's years. the getting coming upstream potential work And that, for CapEx that to falling that end for think me had about to wondering, with you that example, is differentiate XX% because strikes that lower over CapEx once big out? was to there I Mike. completed, very you the XX% just idea was one what CapEx range. a was actions. looking if are quick a pleasure back, But chances your at the to

idea been of to of gas-fired AI did go that cut it the you're think back opposite Trump underinvested in you're then CapEx exact your refining. the back that's wondering, power, an element and whether might are the the that a as to under the what doing wildcard this try was as areas issue? the an opposed -- shrink. And results. was are CapEx the is? I you sort and deals, less Secondly, the -- Do then cutting for of big if really you does you guidance it or And was it potential Trump attractive not volatility such continuing final presumably mega question to under now be

Michael Wirth

you clearly Doug in right. getting terms All of into have one. the Well, questions Leggett pipped most

time, So for Paul. lost up making some

Okay.

at year, of Permian couple XX and So we spending. more at getting us as range. end of top the is contain end middle next very CAGR through few range. those to ago. growth. years let I were the to that were tick at infamous porcupine XX year, Last Could delivering weren't me spending the based make charts that at opportunity the be on a at lot every growing call we'll quickly. a And we kind the years. could. the the plans The This capital, growing and fewer rate range. We we we're of disciplined, real outlook. The message range? earlier, with dollar competitiveness is, for show We're market here X% more the view we on that over X% our mentioned remain you we're think of depend set, last just those, the rigs of end on low we're the year, time XX% the our a I the can of the

ways in there capital not underweight you look been is you'd always become We've or at derisk by opportunity we come if always right to skewed to refining? the position those If are we upstream. the at were to ways your have along So it. and look more of lower efficient. downstream more we to -- And segments, for In one continue chemicals, energy overpaying. deliver capital the in lower to investments. Are in

there. good would And scale, have so to attuned fit can integrate efficiently really which have flexibility opportunities our to operate would out are positions. very It we're assets always market that criteria, into

XXX% the mega is means. there's investment a speculate that the would we power then And AI for AI is of that. I'm set whatever deals, apply to have So that The to on going criteria not -- look, the going spread to to like is on time. manageable not over fit competitive part. on It's other portfolio And sure. things. deliver equity that into And it's out it'll our returns. CapEx for

And displace something? maybe How Will so be as time? cause it day. each else our running part in of to something those will and things pushed a every we it out prioritize business

not of investments them. we've of should process fund and go of so set And we're a within got that that investments them. constantly on. will that overall into only And of fund all queue we're We the the We be best optimized advancing. same should this working

Operator

with We'll Kumar Mizuho. take next from question Nitin our

Nitin Kumar

you're in and margin talked downstream. And then starting to $X structural cost Slide your that those earlier of look touch towards XX break Could the talking on bit and like pressure $X bit? the I just at You -- downstream seems you upstream on a cost little it Congrats reductions savings, little want [indiscernible]. between as were billion you've a XXXX. about I billion weighted trajectory the to about.

are of asset kind helping? to Or related remaining other sales? the more they things that are in So businesses there are

Eimear Bonner

one. structural see you'll this $X across Nitin, to them billion the $X billion segments. I'll cost reductions, take all Yes,

So you bit. the areas focus let little a of kind break for me and down

focus asset sales. first areas The around

to year sales last Canada, see expect we'd asset right, in some you're this example. for the reductions So given year

of XXXX. And So in will focus we portfolio looks those how impacts we that we kind have changing the second some see work. at of area

do then that we and the about will impact do work. where downstream thinking And that work impact standardizing that at will looking the we're segment. differently upstream So segment that we

businesses. I in that all more there the do and would Is design more So certain fashion. example Whales [ a be to mean a for we ] we're classes. centralized there more looking a way an fashion how across asset standardized

is second that's underway So that. the focus work and area on

expect come maybe 'XX through very see the So one excited I'm then is that to 'XX. And last the area. I you and savings focus one, technology about the should think

technology using do differently. to looking So completely this is where we're at work

exploration mentioned focus at cycle we're area for deploying of but we turnarounds. AI that's also today, the robotics the presentation, subsurface plan lot to facilities, examples a in technology our times there's work. -- whether reducing list drones The deliver long digital look will savings. to example, that So to inspect a twins our

between So come XXXX, in $X terms $X billion you billion $X see should of billion the billion. the profile, off $X.X to then And to then. 'XX,

total, $X base. So billion structural the costs XXXX to billion in of $X

Operator

Bernstein We'll next our from take question with Bob Research. Brackett

Bob Brackett

laid Question you've in you're you cash uniquely Permian. partners plus have that the but a there release JV to about positioned the disciplined flow, out Clearly, royalty model interest.

best of to operators? going the the have are the discipline there You terms landscape. continue? What that's you of view probably trend seeing in other it from And is a

Michael Wirth

accrues the we information not interesting. that the get position, our mineral financial of large but only through rights get it's that, also Bob, we advantage Yes, Because advantage.

in have of every position out a X in wells Permian. We X the

a see you of that see -- NOJV partners, we activity X a is all most good through so know companies lot really we that and [ companies, And and ] from cover. lot our

what so to for say are, and has and AFEs lateral and innovation length I productivity gains the And seen what kinds you've funding are plans. and doing think And completion is we from visibility I with things of into sticking got their via what everybody people they look the continuing say which all which is seeing of and back they're right and loading techniques like. And do we for see to would balanced efficiency was the stepping back heading kind all they've strategy. it. And that ratios which kind cash water the throwing the a to anybody of more is what return-oriented I into away ago, is growth don't industry doing rest a proppant decade and and and now proppant of from established,

others. so speak And I can't for

see the of You'll I would been have would I least But to what at what companies. other be to describe we ask seeing have it. that specifically a way continuation is question

Operator

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

Neal Dingmann

you XX% downstream Mike, is wondering, the on bit And year? that by had I'd -- My a you just It's to I it, it having just driven really, continue sequentially know and segment. this more Or of more quarter question turnarounds is just last more, macro little I'm weak that year-over-year. see less was about those talked about call pressures there?

Michael Wirth

It quarter. weak off. no about effects. some were turnaround There doubt Margins was fourth a There's was it.

proportional in downstream the We rolled downstream some some you upstream. accounting the significant segment the for would inventory charges see hit took anything that through much you of impairments the see we that also than on more effects a had and basis,

not a to a it perfect that went it a where things the were and in storm, there direction, was all of I'm was so direction. going lot And negative call quarter it one but

of so affect affect inventory margins. a equation. We is is year the function already lighter levels and seen The can accounting prices impairments inventory And layers turnarounds that LIFO and turnaround or schedule. a complex you've and a certainly can't is next one-off charges

every assume in in these deteriorating. now So But business have says you it's that again structurally and anything quarters I that wouldn't there's business. that

Operator

from will Partners. last Jay We our Jeff take Daniel question Energy with

Unknown Analyst

about it seems Malayan curious place of business. much Argentina. do a Mike, clearly, just with friendlier I to was like office, mean, I kind

earlier. changing and you down politics see there? You the How do it the mentioned set opportunity

Michael Wirth

I inflation very activity. [indiscernible], by agenda pleased what with that of foreign done more and South at And asking. a encouraged in pleased More investable ] he's the encouraging system [indiscernible] [indiscernible] a thus to last for down in very There's that controls, North. in [indiscernible] investors. banking got we're an capital we're also of for and area reformer. both couple would situation over reducing [indiscernible] what well. the north. I'm the And and We're a significantly. the the removing the at pace really encouraged say, see down by. am country a says, El a, [ he's improving. progress of come strong the very would Trapial We've The what works we've we've encouraged Yes. far. I South and geology Thanks the in make very serious in It's position history The seen years country towards stabilized. We've seen, had is got the moderate has but by he

I far. certainly, And more to come. great thus think there's made progress he's

So putting see and confidence our hopeful work will we he'll more an do environment that capital so in to that continue we to there. are increases that

a a So us now, And the to midstream we're a engaged could with export look right help opportunity pipeline good taking terminal. on that we're exports ground. at on deepwater

years we've you So and then right. to guess, on developments gone Argentina update of by, move direction. kind the we'll you're other encouraging seen And things in continue I signs, in But there.

to see set certainly a and So we'll seems of be important an that watching to more signpost us. be for be question, Jeff. for if reforms the this would durable Thanks

Jake Spiering

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

Operator

This concludes XXXX Chevron's Quarter Fourth Call. Conference Earnings

disconnect. now may You

Chevron (CVX) 31 Jan 252024 Q4 Earnings call transcript