UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2006
Chevron Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 1-368-2 | 94-0890210 | ||
| (State or other jurisdiction of incorporation ) |
(Commission File Number) | (I.R.S. Employer No.) | ||
| 6001 Bollinger Canyon Road, San Ramon, CA |
94583 | |||
| (Address of principal executive offices) |
(Zip Code) | |||
Registrant’s telephone number, including area code: (925) 842-1000
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligations of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On July 28, 2006, Chevron Corporation issued a press release announcing unaudited second quarter
2006 net income of $4.4 billion. The press release is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
The information included herein and in Exhibit 99.1 shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference
in any filing under the Securities Act of 1933.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 28, 2006
| CHEVRON CORPORATION | ||||
| By | /s/ M.A. Humphrey | |||
| M. A. Humphrey, Vice President and Comptroller (Principal Accounting Officer and Duly Authorized Officer) |
||||
EXHIBIT INDEX
| 99.1 | Press release issued July 28, 2006. |
|
Chevron Corporation Policy, Government and Public Affairs Post Office Box 6078 San Ramon, CA 94583-0778 www.chevron.com |
EXHIBIT 99.1
FOR RELEASE AT 5:30 AM PDT
JULY 28, 2006
FOR RELEASE AT 5:30 AM PDT
JULY 28, 2006
CHEVRON REPORTS SECOND QUARTER NET INCOME OF $4.4 BILLION,
UP 18 PERCENT FROM $3.7 BILLION IN SECOND QUARTER 2005
UP 18 PERCENT FROM $3.7 BILLION IN SECOND QUARTER 2005
| • | Upstream earnings improve 18 percent to $3.3 billion on higher prices for crude oil and increased production | |
| • | U.S. upstream results include charges of $300 million for costs associated with last year’s hurricanes | |
| • | Downstream profits of $1 billion up slightly from year-ago quarter, due in part to improved U.S. refinery utilization | |
| • | Capital and exploratory expenditures of $4.3 billion increase 70 percent from second quarter 2005 |
SAN RAMON, Calif., July 28, 2006 — Chevron Corporation today reported net income of $4.4
billion ($1.97 per share — diluted) for the second quarter 2006, compared with $3.7 billion ($1.76
per share — diluted) in the year-ago period. For the first six months of 2006, net income was
$8.3 billion ($3.77 per share — diluted), compared with $6.4 billion ($3.04 per share — diluted)
in the 2005 first half.
Sales and other operating revenues in the second quarter 2006 were $52 billion, up $5 billion
from the same period in 2005. The increase was mainly attributable to higher prices for crude oil
and refined products and the inclusion of revenues related to the former Unocal operations acquired
in August 2005. Partially offsetting these effects in the 2006 period was the impact of an
accounting-rule change beginning in the second quarter for certain purchase and sale contracts.
Six-month 2006 sales and other operating revenues were $106 billion, up from $88 billion in the
2005 first half.
Earnings Summary
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income by Business Segment — |
||||||||||||||||
Upstream — Exploration and Production |
$ | 3,272 | $ | 2,772 | $ | 6,730 | $ | 5,151 | ||||||||
Downstream — Refining, Marketing and
Transportation |
998 | 976 | 1,578 | 1,385 | ||||||||||||
Chemicals |
94 | 84 | 247 | 221 | ||||||||||||
All Other |
(11 | ) | (148 | ) | (206 | ) | (396 | ) | ||||||||
Net Income* |
$ | 4,353 | $ | 3,684 | $ | 8,349 | $ | 6,361 | ||||||||
*Includes foreign currency effects |
$ | (56 | ) | $ | 54 | $ | (164 | ) | $ | 33 | ||||||
Quarterly Results
“The earnings improvement in the second quarter was driven mainly by our upstream business
outside the United States,” said Chairman and CEO Dave O’Reilly. “Worldwide upstream results in
this year’s quarter benefited from both higher prices for crude oil and a 10 percent increase in
oil-equivalent
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production.” O’Reilly noted that U.S. upstream results in the 2006 quarter included
charges of about $300 million ($0.13 per share) for uninsured costs associated with the
dismantlement or repair of infrastructure damaged by last year’s hurricanes in the Gulf of Mexico.
For the company’s downstream business, O’Reilly said profits of approximately $1 billion were
up slightly from the second quarter 2005 on improved results in the United States. Contributing to
the U.S. earnings improvement were higher average margins for refined products and a higher
refinery-utilization rate. The company’s U.S. fuels refinery network operated at 100 percent of
its crude oil capacity in the 2006 quarter.
Sustained Financial Performance
“Our recurring strong cash flows from operations funded $4 billion of capital and exploratory
expenditures in the second quarter of this year,” O’Reilly remarked. “We also retired $1.7 billion
of debt during the quarter that was assumed with last year’s acquisition of Unocal and purchased
$1.3 billion of our common shares in the open market. We expect to complete our $5 billion stock buyback program by the end of the year. Earnings for the past 12 months resulted in
a 24 percent return on capital employed for the period.”
Strategic Focus
O’Reilly also noted recent achievements by the company’s upstream operations and initiatives
related to investments in alternative fuels:
| • | Angola — Production of first crude oil from the offshore Lobito Field. The Benguela, Belize, Lobito and Tomboco fields form the 31 percent-owned and operated BBLT Development. As additional fields and wells are added over the next two years, BBLT’s maximum production is expected to reach approximately 200,000 barrels of oil per day. | ||
| • | United Kingdom — Production of first crude oil from the 85 percent-owned and operated Area C Project in the Captain Field. Eventual maximum production for the project is estimated at 15,000 barrels per day. | ||
| • | Azerbaijan — Participation in the first shipment of crude oil through the 8.9 percent-owned Baku-Tbilisi-Ceyhan (BTC) pipeline. The initial crude oil is being supplied by the Azerbaijan International Oil Company, in which Chevron has a 10.3 percent interest. | ||
| • | Brazil — Commitment to develop the 52 percent-owned and operated offshore Frade Field. Initial production is targeted by early 2009, with a maximum annual rate for the project estimated at 85,000 oil-equivalent barrels per day. | ||
| • | Nigeria — Discovery of crude oil in the 20 percent-owned offshore Oil Prospecting License 214. | ||
| • | Australia — Discovery of natural gas at the Chandon-1 exploration well offshore northwest Australia in the Greater Gorgon development area. Chevron’s interest in the property will be 50 percent. | ||
| • | Vietnam — Signing of a 30-year production-sharing contract with Vietnam Oil and Gas Corporation for a 50 percent interest in Block 122 offshore eastern Vietnam. The company has a 3-year work program for seismic acquisition and drilling of an exploratory well. |
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| • | Biofuels — Acquisition completed of a 22 percent interest in Galveston Bay Biodiesel L.P., which is building one of the first large-scale biodiesel plants in the United States. Chevron also entered into a partnership with the Georgia Institute of Technology to pursue advanced technology aimed at making cellulosic biofuels and hydrogen into viable transportation fuels. |
UPSTREAM — EXPLORATION AND PRODUCTION
Worldwide net oil-equivalent production, including volumes produced from oil sands and
production under an operating service agreement, was 2,669,000 barrels per day in the second
quarter 2006, an increase of 10 percent from the corresponding period in 2005. The increase was
associated with the production from the former Unocal operations.
Average U.S. prices for crude oil and natural gas liquids in the second quarter 2006 increased
by $16 to $60 per barrel. Outside the United States, prices were up by more than $17 per barrel to
$62. The average U.S. natural gas sales price decreased about 7 percent to $5.90 per thousand
cubic feet, while outside the United States the average natural gas price of $3.80 per thousand
cubic feet was 27 percent higher than a year earlier.
U.S. Upstream
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income |
$ | 901 | $ | 972 | $ | 2,115 | $ | 1,739 | ||||||||
U.S. upstream income of $901 million in the second quarter decreased 7 percent from the 2005
period. Net charges of approximately $300 million were recorded in the 2006 quarter for
additional uninsured costs related to the dismantlement or repair of wells and facilities that were
damaged in last year’s hurricanes in the Gulf of Mexico. Other operating expenses were also higher
in this year’s quarter. These effects were partially offset by the benefits of higher prices for
crude oil and higher oil-equivalent production between periods.
Net oil-equivalent production increased 4 percent to 768,000 barrels per day in the 2006
quarter due to volumes added from the former Unocal operations. The net liquids component of
production was down about 1 percent to 463,000 barrels per day. Net natural gas production
averaged 1.8 billion cubic feet per day, up 13 percent.
International Upstream
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income* |
$ | 2,371 | $ | 1,800 | $ | 4,615 | $ | 3,412 | ||||||||
*Includes foreign currency effects |
$ | (96 | ) | $ | 57 | $ | (219 | ) | $ | 39 | ||||||
International upstream income of $2.4 billion increased from $1.8 billion in the second
quarter 2005. The improvement was due mainly to higher average prices for crude oil and natural gas
and increased oil-equivalent production. Foreign currency effects reduced earnings by $96 million
in the 2006 quarter, compared with a $57 million benefit to income in the year-ago period.
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Net oil-equivalent production, including volumes produced from oil sands and production under
an operating service agreement, increased 13 percent to 1,901,000 barrels per day in the 2006
quarter. The net liquids component increased 3 percent to 1,362,000 barrels per day, due to
volumes added from former-Unocal operations. This production increase was partially offset by the
effects of maintenance activities at the Captain Field in the United Kingdom and the Athabasca oil
sands project in Canada, as well as lower cost-oil recovery volumes in Indonesia. Natural gas
production was up 50 percent to 3.2 billion cubic feet per day due to the added Unocal-related
volumes.
In July 2006,
the United Kingdom enacted an increase in the corporation tax on oil and gas companies in the U.K. North Sea,
which effectively increased the tax rate from 40 percent to 50 percent. The changes are
effective from January 1, 2006. The company will record a one-time charge of approximately $200
million in the third quarter 2006 to adjust deferred taxes as of the effective date and to
recognize the effect of the incremental tax for the first half of 2006. The effect of the
incremental tax rate on earnings in the second half of 2006 is estimated at $80 million.
DOWNSTREAM — REFINING, MARKETING AND TRANSPORTATION
U.S. Downstream
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income |
$ | 554 | $ | 398 | $ | 764 | $ | 456 | ||||||||
U.S. downstream earnings of $554 million increased $156 million from the 2005 quarter, mainly
as a result of higher refined-product margins and increased refinery utilization.
Sales volumes for refined products decreased 3 percent to 1,468,000 barrels per day in the
2006 quarter due to a change in accounting beginning April 1 related to certain purchase and sale
contracts. Previously, transactions for these contracts were reported as both a purchase and sale.
The new accounting requires the transactions to be netted. Excluding the impact of this new
accounting rule, sales of refined products were about 2 percent higher in the 2006 quarter.
International Downstream
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income* |
$ | 444 | $ | 578 | $ | 814 | $ | 929 | ||||||||
*Includes foreign currency effects |
$ | 14 | $ | 12 | $ | 23 | $ | 24 | ||||||||
International downstream earnings of $444 million decreased $134 million from the
year-ago period, as the benefits of higher refined-product margins and improved refinery
utilization were more than offset by the effect of higher average income tax rates and an increase
in operating expenses.
Refined-product sales volumes of 2,100,000 barrels per day were down 10 percent. Excluding
the effect of the new accounting rule, sales were down 4 percent, primarily due to lower gasoline
sales in Asia-Pacific and Europe and lower fuel oil sales.
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CHEMICALS
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Income* |
$ | 94 | $ | 84 | $ | 247 | $ | 221 | ||||||||
*Includes foreign currency effects |
$ | (5 | ) | $ | (1 | ) | $ | (11 | ) | $ | (2 | ) | ||||
Chemical operations earned $94 million, up 12 percent from the 2005 quarter. Earnings
improved for both the 50 percent-owned Chevron Phillips Chemical Company LLC affiliate and the
company’s Oronite subsidiary. Average income tax rates were also higher between periods.
ALL OTHER
| Three Months | Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| Millions of Dollars | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Net Charges* |
$ | (11 | ) | $ | (148 | ) | $ | (206 | ) | $ | (396 | ) | ||||
*Includes foreign currency effects |
$ | 31 | $ | (14 | ) | $ | 43 | $ | (28 | ) | ||||||
All Other consists of the company’s interest in Dynegy, mining operations of coal and
other minerals, power generation businesses, worldwide cash management and debt financing
activities, corporate administrative functions, insurance operations, real estate activities and
technology companies.
Net charges were $11 million in the second quarter 2006, compared with net charges of $148
million in the corresponding 2005 period. The decrease in net charges was partly associated with
improved Dynegy-related results, which included a gain on the redemption of the company’s
investment in Dynegy preferred stock. The company also recorded a gain on the retirement of Unocal
debt.
CAPITAL AND EXPLORATORY EXPENDITURES
Capital and exploratory expenditures in the first six months of 2006 were $7.4 billion,
compared with $4.2 billion in the corresponding 2005 period. Included in these expenditures were
approximately $800 million and $700 million for the company’s share of equity affiliate
expenditures in 2006 and 2005, respectively. Upstream expenditures represented 77 percent of the
companywide total in 2006.
# # #
7/28/06
NOTICE
Chevron’s discussion of second quarter 2006 earnings with security analysts will take place on
Friday, July 28, 2006, at 8:00 a.m. PDT. A webcast of the meeting will be available in a
listen-only mode to individual investors, media and other interested parties on Chevron’s Web site
at www.chevron.com under the “Investors” heading. Additional financial and operating information
is contained in the Investor Relations Earnings Supplement that is available under “Financial
Reports” on the Web site.
Chevron will post selected third quarter 2006 interim company and industry performance data on its
Web site on Wednesday, September 27, 2006, at 2:00 p.m. PDT. Interested parties may view this
interim data at www.chevron.com under the “Investors” heading.
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CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release of Chevron Corporation contains forward-looking statements relating to
Chevron’s operations that are based on management’s current expectations, estimates and projections
about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,”
“expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “schedules,” “estimates”
and similar expressions are intended to identify such forward-looking statements. These statements
are not guarantees of future performance and are subject to certain risks, uncertainties and other
factors, some of which are beyond our control and are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or forecasted in such
forward-looking statements. The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this report. Unless legally required, Chevron
undertakes no obligation to update publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the
forward-looking statements are crude oil and natural gas prices; refining margins and marketing
margins; chemicals prices and competitive conditions affecting supply and demand for aromatics,
olefins and additives products; actions of competitors; the competitiveness of alternate energy
sources or product substitutes; technological developments; the results of operations and financial
condition of equity affiliates; inability or failure of the company’s joint-venture partners to
fund their share of operations and development activities; potential failure to achieve expected
net production from existing and future crude oil and natural gas development projects; potential
delays in the development, construction or start-up of planned projects; potential disruption or
interruption of the company’s net production or manufacturing facilities due to war, accidents,
political events, civil unrest or severe weather; potential liability for remedial actions under
existing or future environmental regulations and litigation; significant investment or product
changes under existing or future environmental statutes, regulations and litigation; potential
liability resulting from pending or future litigation; the company’s acquisition or disposition of
assets; government mandated sales, divestitures, recapitalizations or restrictions on scope of
company operations; the effects of changed accounting rules under generally accepted accounting
principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk
Factors” on pages 31 and 32 of the company’s 2005 Annual Report on Form 10-K. In addition, such
statements could be affected by general domestic and international economic and political
conditions. Unpredictable or unknown factors not discussed herein also could have material adverse
effects on forward-looking statements.
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| CHEVRON CORPORATION — FINANCIAL REVIEW | -1- | |||
| (Millions of Dollars, Except Per-Share Amounts) |
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
| (unaudited) | Three Months | Six Months | ||||||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||||||
| REVENUES AND OTHER INCOME | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||
Sales and other operating revenues (1) (2) |
$ | 52,153 | $ | 47,265 | $ | 105,677 | $ | 87,755 | ||||||||||||
Income from equity affiliates |
1,113 | 861 | 2,096 | 1,750 | ||||||||||||||||
| Other income | 270 | 217 | 387 | 445 | ||||||||||||||||
Total Revenues and Other Income |
53,536 | 48,343 | 108,160 | 89,950 | ||||||||||||||||
| COSTS AND OTHER DEDUCTIONS | ||||||||||||||||||||
Purchased crude oil and products,
operating and other expenses (2) |
38,054 | 35,134 | 78,294 | 65,246 | ||||||||||||||||
Depreciation, depletion and amortization |
1,807 | 1,320 | 3,595 | 2,654 | ||||||||||||||||
Taxes other than on income(1) |
5,153 | 5,311 | 9,947 | 10,437 | ||||||||||||||||
Interest and debt expense |
121 | 104 | 255 | 211 | ||||||||||||||||
Minority interests |
22 | 18 | 48 | 39 | ||||||||||||||||
| Total Costs and Other Deductions | 45,157 | 41,887 | 92,139 | 78,587 | ||||||||||||||||
Income From Continuing Operations
Before Income Tax Expense |
8,379 | 6,456 | 16,021 | 11,363 | ||||||||||||||||
Income tax expense |
4,026 | 2,772 | 7,672 | 5,002 | ||||||||||||||||
| NET INCOME | $ | 4,353 | $ | 3,684 | $ | 8,349 | $ | 6,361 | ||||||||||||
| PER-SHARE OF COMMON STOCK | ||||||||||||||||||||
Net Income |
- Basic | $ | 1.98 | $ | 1.77 | $ | 3.79 | $ | 3.05 | |||||||||||
| - Diluted | $ | 1.97 | $ | 1.76 | $ | 3.77 | $ | 3.04 | ||||||||||||
Dividends |
$ | 0.52 | $ | 0.45 | $ | 0.97 | $ | 0.85 | ||||||||||||
| Weighted Average Number of Shares Outstanding (000’s) | ||||||||||||||||||||
| - Basic | 2,196,134 | 2,077,743 | 2,205,008 | 2,084,141 | ||||||||||||||||
| - Diluted | 2,206,009 | 2,085,763 | 2,214,877 | 2,092,792 | ||||||||||||||||
| (1) Includes excise, value-added and other similar taxes. | $ | 2,416 | $ | 2,162 | $ | 4,531 | $ | 4,278 | ||||||||||||
(2) Includes amounts in revenues for buy/sell contracts with the same counterparty for periods prior to
second quarter 2006. (Associated costs are included in Purchased crude oil and products, operating and other
expenses.) The company adopted a new accounting rule effective April 1, 2006, that requires these types of
transactions to be netted in the income statement. |
Not Applicable | $ | 5,962 | $ | 6,725 | $ | 11,337 | |||||||||||||
| CHEVRON CORPORATION — FINANCIAL REVIEW | -2- | |||
| (Millions of Dollars) |
| INCOME BY MAJOR OPERATING AREA | Three Months | Six Months | ||||||||||||||
| (unaudited) | Ended June 30 | Ended June 30 | ||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Upstream – Exploration and Production |
||||||||||||||||
United States |
$ | 901 | $ | 972 | $ | 2,115 | $ | 1,739 | ||||||||
International |
2,371 | 1,800 | 4,615 | 3,412 | ||||||||||||
Total Exploration and Production |
3,272 | 2,772 | 6,730 | 5,151 | ||||||||||||
Downstream – Refining, Marketing and Transportation |
||||||||||||||||
United States |
554 | 398 | 764 | 456 | ||||||||||||
International |
444 | 578 | 814 | 929 | ||||||||||||
Total Refining, Marketing and Transportation |
998 | 976 | 1,578 | 1,385 | ||||||||||||
Chemicals |
94 | 84 | 247 | 221 | ||||||||||||
All Other (1) |
(11 | ) | (148 | ) | (206 | ) | (396 | ) | ||||||||
Net Income |
$ | 4,353 | $ | 3,684 | $ | 8,349 | $ | 6,361 | ||||||||
| SELECTED BALANCE SHEET ACCOUNT DATA | June 30, 2006 | Dec. 31, 2005 | ||||||||||||||
| (unaudited) | ||||||||||||||||
Cash and Cash Equivalents |
$ | 10,080 | $ | 10,043 | ||||||||||||
Marketable Securities |
$ | 1,053 | $ | 1,101 | ||||||||||||
Total Assets |
$ | 131,183 | $ | 125,833 | ||||||||||||
Total Debt |
$ | 10,349 | $ | 12,870 | ||||||||||||
Stockholders’ Equity |
$ | 66,906 | $ | 62,676 | ||||||||||||
| Three Months | Six Months | |||||||||||||||
| CAPITAL AND EXPLORATORY EXPENDITURES (2) | Ended June 30 | Ended June 30 | ||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
United States |
||||||||||||||||
Exploration and Production |
$ | 1,151 | $ | 538 | $ | 1,971 | $ | 924 | ||||||||
Refining, Marketing and Transportation |
252 | 122 | 444 | 233 | ||||||||||||
Chemicals |
24 | 24 | 41 | 43 | ||||||||||||
Other |
108 | 61 | 154 | 138 | ||||||||||||
Total United States |
1,535 | 745 | 2,610 | 1,338 | ||||||||||||
International |
||||||||||||||||
Exploration and Production |
1,998 | 1,388 | 3,691 | 2,329 | ||||||||||||
Refining, Marketing and Transportation |
767 | 333 | 1,039 | 481 | ||||||||||||
Chemicals |
11 | 8 | 17 | 15 | ||||||||||||
Other |
— | 16 | 2 | 17 | ||||||||||||
Total International |
2,776 | 1,745 | 4,749 | 2,842 | ||||||||||||
Worldwide |
$ | 4,311 | $ | 2,490 | $ | 7,359 | $ | 4,180 | ||||||||
(1) Includes the company’s interest in Dynegy, mining operations of coal
and other minerals, power generation businesses, worldwide cash management
and debt financing activities, corporate administrative functions, insurance
operations, real estate activities, and technology companies. |
||||||||||||||||
(2) Includes interest in affiliates: |
||||||||||||||||
United States |
$ | 38 | $ | 37 | $ | 70 | $ | 73 | ||||||||
International |
435 | 365 | 714 | 622 | ||||||||||||
Total |
$ | 473 | $ | 402 | $ | 784 | $ | 695 | ||||||||
| CHEVRON CORPORATION — FINANCIAL REVIEW | -3- |
| Three Months | Six Months | |||||||||||||||
| OPERATING STATISTICS (1) | Ended June 30 | Ended June 30 | ||||||||||||||
| NET LIQUIDS PRODUCTION (MB/D): | 2006 | 2005 | 2006 | 2005 | ||||||||||||
United States |
463 | 470 | 458 | 461 | ||||||||||||
International |
1,239 | 1,179 | 1,234 | 1,187 | ||||||||||||
Worldwide |
1,702 | 1,649 | 1,692 | 1,648 | ||||||||||||
NET NATURAL GAS PRODUCTION (MMCF/D): (2) |
||||||||||||||||
United States |
1,832 | 1,621 | 1,807 | 1,611 | ||||||||||||
International |
3,234 | 2,151 | 3,199 | 2,153 | ||||||||||||
Worldwide |
5,066 | 3,772 | 5,006 | 3,764 | ||||||||||||
OTHER PRODUCED VOLUMES-INTERNATIONAL (MB/D)
(3) |
123 | 143 | 130 | 140 | ||||||||||||
TOTAL NET OIL-EQUIVALENT PRODUCTION (MB/D): (4) |
||||||||||||||||
United States |
768 | 740 | 759 | 729 | ||||||||||||
International |
1,901 | 1,681 | 1,897 | 1,687 | ||||||||||||
Worldwide |
2,669 | 2,421 | 2,656 | 2,416 | ||||||||||||
SALES OF NATURAL GAS (MMCF/D): (5) |
||||||||||||||||
United States |
6,839 | 5,697 | 6,899 | 5,281 | ||||||||||||
International |
3,865 | 1,990 | 3,481 | 2,012 | ||||||||||||
Worldwide |
10,704 | 7,687 | 10,380 | 7,293 | ||||||||||||
SALES OF NATURAL GAS LIQUIDS (MB/D): (5) |
||||||||||||||||
United States |
128 | 170 | 118 | 170 | ||||||||||||
International |
89 | 114 | 99 | 111 | ||||||||||||
Worldwide |
217 | 284 | 217 | 281 | ||||||||||||
SALES OF REFINED PRODUCTS (MB/D): (6) |
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United States |
1,468 | 1,510 | 1,501 | 1,486 | ||||||||||||
International |
2,100 | 2,327 | 2,215 | 2,329 | ||||||||||||
Worldwide |
3,568 | 3,837 | 3,716 | 3,815 | ||||||||||||
REFINERY INPUT (MB/D): |
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United States |
935 | 912 | 937 | 884 | ||||||||||||
International |
1,063 | 1,007 | 1,073 | 1,010 | ||||||||||||
Worldwide |
1,998 | 1,919 | 2,010 | 1,894 | ||||||||||||
(1) Includes interest in affiliates. |
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(2) Includes natural gas consumed on lease (MMCF/D): |
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United States |
58 | 58 | 44 | 55 | ||||||||||||
International (5) |
411 | 325 | 383 | 317 | ||||||||||||
(3) Other produced volumes – International (MB/D): |
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Athabasca Oil Sands (Canada) |
16 | 32 | 20 | 29 | ||||||||||||
Boscan Operating Service Agreement (Venezuela) |
107 | 111 | 110 | 111 | ||||||||||||
| 123 | 143 | 130 | 140 | |||||||||||||
(4) Oil-equivalent production is the sum of net
liquids production, net gas production and other produced liquids. The
oil-equivalent gas conversion ratio is 6,000 cubic
feet of natural gas = 1 barrel of crude oil. |
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(5) 2005 conformed to 2006 presentation. |
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(6) Includes volumes for buy/sell contracts (MB/D): * |
||||||||||||||||
United States |
Not | 78 | 53 | 81 | ||||||||||||
International |
Applicable | 137 | 49 | 137 | ||||||||||||
Total |
215 | 102 | 218 | |||||||||||||
* The
company adopted a new accounting rule effective April 1,
2006, related to buy/sell contracts with the same
counterparty. Previously, transactions for these
contracts were reported as both a purchase and sale.
The new accounting requires the transactions to be
netted, resulting in no volumes from these transactions
reported as “Sales of refined products” for periods
beginning in the second quarter 2006. |
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