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

Chevron Corporation

(Exact name of registrant as specified in its charter)

Delaware		1-368-2		94-0890210
(State or other jurisdiction		(Commission File Number)		(I.R.S. Employer No.)
of incorporation )

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

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 April 27, 2007, Chevron Corporation issued a press release announcing unaudited first quarter 2007 net income of $4.715 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.

EXHIBIT INDEX

99.1       Press release issued April 27, 2007.

		Policy, Government and Public Affairs Chevron Corporation P.O. Box 6078 San Ramon, CA 94583-0778 www.chevron.com
News Release
EXHIBIT 99.1
FOR RELEASE AT 5:30 AM PDT
APRIL 27, 2007

CHEVRON REPORTS FIRST QUARTER NET INCOME OF $4.7 BILLION,
UP 18 PERCENT FROM FIRST QUARTER 2006

•

Downstream profits increase $1 billion, due mainly to $700 million gain on sale of refining assets in Europe

•

Upstream earnings decline $550 million on lower average prices for crude oil and natural gas

     SAN RAMON, Calif., April 27, 2007 – Chevron Corporation (NYSE: CVX) today reported net income of $4.7 billion ($2.18 per share – diluted) for the first quarter 2007, compared with $4 billion ($1.80 per share – diluted) in the 2006 first quarter. Earnings in the 2007 period included a $700 million gain ($0.32 per share) on the sale of the company’s 31 percent interest in the Nerefco Refinery and related assets in the Netherlands.

Earnings Summary

		Three Months Ended
		March 31
Millions of Dollars		2007				2006
Income by Business Segment
Upstream – Exploration and Production		$	2,907			$	3,458
Downstream – Refining, Marketing and Transportation			1,623				580
Chemicals			120				153
All Other			65				(195	)
Net Income*		$	4,715			$	3,996
* Includes foreign currency effects		$	(120	)		$	(108	)

     “Earnings and cash flows were strong in the first quarter, despite a decline in upstream profits from a year ago due to lower prices for crude oil and natural gas,” said Chairman and CEO Dave O’Reilly. “In our downstream business, earnings benefited from the sale of refining assets in Europe and higher margins for refined products worldwide.”

     O’Reilly said the strong cash flows enabled investment in the company’s extensive queue of projects, including the Bibiyana natural gas field in Bangladesh, which began operations in March. And building on the company’s successful exploration program, Chevron and partners in recent weeks announced the discovery of additional crude oil in the Moho-Bilondo permit offshore Republic of the Congo.

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     Net oil-equivalent production of 1,894,000 barrels per day was flat between periods. In Venezuela, the conversion of operating service agreements to joint-stock companies resulted in a decline of about 90,000 barrels per day. Elsewhere, production was higher in Kazakhstan, Angola and Azerbaijan. The net liquids component of production was 1,349,000 barrels per day in 2007, down 17,000 from a year ago. Net natural gas production was 3.3 billion cubic feet per day, up more than 100 million from the 2006 first quarter.

DOWNSTREAM – REFINING, MARKETING AND TRANSPORTATION

U.S. Downstream

		Three Months Ended
		March 31
Millions of Dollars		2007				2006
Income		$	350			$	210

     U.S. downstream earnings of $350 million increased $140 million from the 2006 quarter, mainly as a result of higher margins for refined products. This benefit to earnings was partially offset by the effect of a major turnaround that lasted most of the quarter at the company’s refinery in Richmond, California. The turnaround was extended to make repairs to the crude-oil processing unit following a fire that occurred during shut-down.

     Refined-product sales volumes decreased 6 percent to 1,447,000 barrels per day in 2007. The decline was associated with an accounting standard effective in April 2006 that requires certain purchase and sale contracts with the same counterparty to be netted for reporting. These types of transactions were previously reported separately as a purchase and a sale. Excluding the impact of this standard, refined-product sales volumes increased 1 percent between periods. Branded gasoline sales of 622,000 barrels per day increased 5 percent between quarters.

International Downstream

		Three Months Ended
		March 31
Millions of Dollars		2007				2006
Income*		$	1,273			$	370
* Includes foreign currency effects		$	5			$	9

     International downstream income of nearly $1.3 billion increased about $900 million from the 2006 quarter. The 2007 earnings included a $700 million gain on the sale of the company’s interest in refining and related assets in the Netherlands and a benefit from higher average margins for refined products.

     Total refined-product sales volumes of 2,064,000 barrels per day were 9 percent lower than last year’s quarter. Excluding the effects of the accounting standard for purchase and sale contracts with the same counterparty, sales volumes were down 5 percent on lower fuel-oil sales in Europe.

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CHEMICALS

		Three Months Ended
		March 31
Millions of Dollars		2007				2006
Income*		$	120			$	153
* Includes foreign currency effects		$	(1	)		$	(6	)

     Chemical operations earned $120 million in the first quarter 2007, a decline of $33 million from the year-earlier period. The decrease was largely due to lower margins on sales of commodity chemicals by the company’s 50 percent owned Chevron Phillips Chemical Company LLC. Margins on sales of lubricant and fuel additives by the company’s Oronite subsidiary were higher between periods.

ALL OTHER

		Three Months Ended
		March 31
Millions of Dollars		2007				2006
Income*		$	65			$	(195	)
* Includes foreign currency effects		$	(5	)		$	12

     All Other consists of the company’s interest in Dynegy, mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels and technology companies.

     Income in the first quarter 2007 was $65 million, compared with charges of $195 million in the year-ago period. The variance between quarters was largely due to favorable corporate tax items, lower interest expense and higher interest income.

SALES AND OTHER OPERATING REVENUES

     Sales and other operating revenues in the first quarter 2007 were $46 billion, down from $54 billion a year earlier. Most of the decline was associated with the impact of the accounting-rule change that requires certain purchase and sale contracts with the same counterparty to be netted for reporting.

CAPITAL AND EXPLORATORY EXPENDITURES

     Capital and exploratory expenditures for the first quarter 2007 were $4.1 billion, compared with $3 billion in the corresponding 2006 period. The amounts included approximately $500 million and $300 million, respectively, for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream projects represented 78 percent of the companywide total in 2007.

# # #

NOTICE

     Chevron’s discussion of first quarter 2007 earnings with security analysts will take place on Friday, April 27, 2007, 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 second quarter 2007 interim performance data for the company and industry on its Web site on Tuesday, July 10, 2007, 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

     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,” “budgets” 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 press release. 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; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the 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; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); the 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; the potential liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms 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 2006 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 in this report could also have material adverse effects on forward-looking statements.

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CHEVRON CORPORATION — FINANCIAL REVIEW
(Millions of Dollars, Except Per-Share Amounts)

CONSOLIDATED STATEMENT OF INCOME
(unaudited)

										Three Months
										Ended March 31
										2007				2006
REVENUES AND OTHER INCOME
Sales and other operating revenues (1) (2)										$	46,302			$	53,524
Income from equity affiliates											937				983
Other income											988				117
Total Revenues and Other Income											48,227				54,624
COSTS AND OTHER DEDUCTIONS
Purchased crude oil and products, operating and other expenses (2)											33,177				40,240
Depreciation, depletion and amortization											1,963				1,788
Taxes other than on income(1)											5,425				4,794
Interest and debt expense											74				134
Minority interests											28				26
Total Costs and Other Deductions											40,667				46,982
Income Before Income Tax Expense											7,560				7,642
Income tax expense											2,845				3,646
NET INCOME										$	4,715			$	3,996
PER SHARE OF COMMON STOCK
Net Income						- Basic				$	2.20			$	1.81
						- Diluted				$	2.18			$	1.80
Dividends										$	0.52			$	0.45
Weighted Average Number of Shares Outstanding (000’s)
		- Basic									2,145,518				2,213,980
		- Diluted									2,157,879				2,223,843
(1) Includes excise, value-added and similar taxes										$	2,414			$	2,115
(2) Includes amounts in revenues for buy/sell contracts; associated costs are included in “Purchased crude oil and products, operating and other expenses.”										$	—			$	6,725

CHEVRON CORPORATION — FINANCIAL REVIEW
(Millions of Dollars)

		Three Months
		Ended March 31
		2007				2006
INCOME BY MAJOR OPERATING AREA                 (unaudited)
Upstream – Exploration and Production
United States		$	796			$	1,214
International			2,111				2,244
Total Exploration and Production			2,907				3,458
Downstream – Refining, Marketing and Transportation
United States			350				210
International			1,273				370
Total Refining, Marketing and Transportation			1,623				580
Chemicals			120				153
All Other (1)			65				(195	)
Net Income		$	4,715			$	3,996

		Mar. 31, 2007				Dec. 31, 2006
		(unaudited)
SELECTED BALANCE SHEET ACCOUNT DATA
Cash and Cash Equivalents		$	11,800			$	10,493
Marketable Securities		$	903			$	953
Total Assets		$	136,006			$	132,628
Total Debt		$	9,948			$	9,838
Stockholders’ Equity		$	71,460			$	68,935

		Three Months
		Ended March 31
		2007				2006
CAPITAL AND EXPLORATORY EXPENDITURES (2)
United States
Exploration and Production		$	920			$	820
Refining, Marketing and Transportation			233				192
Chemicals			29				17
Other			263				46
Total United States			1,445				1,075
International
Exploration and Production			2,247				1,693
Refining, Marketing and Transportation			349				272
Chemicals			11				6
Other			3				2
Total International			2,610				1,973
Worldwide		$	4,055			$	3,048

(1) Includes the company’s interest in Dynegy Inc., mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels and technology companies.
(2) Includes interest in affiliates:
United States		$	32			$	32
International			442				279
Total		$	474			$	311

CHEVRON CORPORATION — FINANCIAL REVIEW

OPERATING STATISTICS ⁽¹⁾

		Three Months
		Ended March 31
		2007				2006
NET LIQUIDS PRODUCTION (MB/D):
United States			462				453
International			1,317				1,228
Worldwide			1,779				1,681
NET NATURAL GAS PRODUCTION (MMCF/D): (2)
United States			1,723				1,782
International			3,271				3,165
Worldwide			4,994				4,947
OTHER PRODUCED VOLUMES - INTERNATIONAL (MB/D):(3)			32				138
TOTAL NET OIL - EQUIVALENT PRODUCTION (MB/D):(4)
United States			749				750
International			1,894				1,894
Worldwide			2,643				2,644
SALES OF NATURAL GAS (MMCF/D):
United States			7,854				6,961
International			3,890				3,093
Worldwide			11,744				10,054
SALES OF NATURAL GAS LIQUIDS (MB/D):
United States			140				111
International			80				109
Worldwide			220				220
SALES OF REFINED PRODUCTS (MB/D):(5) (6)
United States			1,447				1,534
International			2,064				2,275
Worldwide			3,511				3,809
REFINERY INPUT (MB/D):
United States			729				939
International			1,070				1,079
Worldwide			1,799				2,018

(1) Includes interest in affiliates.
(2) Includes natural gas consumed in operations (MMCF/D):
United States			69				29
International			445				386
(3) Other produced volumes – International (MB/D):
Athabasca Oil Sands (Canada)			32				26
Boscan Operating Service Agreement (Venezuela); converted to an equity affiliate effective October 2006.			—				112
			32				138
(4) Net 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.
(5) 2006 conformed to the 2007 presentation.
(6) Includes volumes for buy/sell contracts (MB/D):
United States			—				106
International			—				98
Total			—				204