CHEVRON CORPORATION
	By:	/s/ M.A. Humphrey
		M. A. Humphrey, Vice President and
		Comptroller (Principal Accounting Officer and Duly Authorized Officer)

 

 

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     U.S. refinery crude-input volumes increased about 30 percent on completion of the first quarter’s turnaround at the company’s Richmond, California, refinery. In June, an extensive planned turnaround of a crude distillation unit at the company’s El Segundo, California refinery was initiated. The unit was out-of-service for the entire month of June and work continues into the third quarter. Due to inventory on hand, product supplies to customers were uninterrupted during the maintenance outage. Outside the United States, refinery input volumes declined, largely on the sale of the Nerefco Refinery at the end of the first quarter and a planned turnaround at the Yeosu Refinery in South Korea.

     The U.S. West Coast industry refining indicator improved by about $3.60 per barrel during the three months of the second quarter; however, the company did not fully benefit from the increase because of the downtime at the El Segundo Refinery that began in June. The U.S. Gulf Coast light-heavy-differential marker averaged about $8.30 per barrel higher in the full second quarter. Outside the United States, benchmark refining margins were also higher. However, for the first two months of the quarter, actual refining margins realized were lower than indicator margins.

     During the full second quarter, the Los Angeles mogas marketing margin indicator improved by about $2.50 per barrel, while the Houston mogas indicator declined by about $1.20 per barrel. For the first two months of the quarter, actual marketing margins realized in the United States were lower than indicator margins reflecting different product and location mix effects. Outside the United States, indicative marketing margins were mixed.

     Downstream results for the second quarter will include charges for environmental remediation items in excess of $50 million.

     In May, the company announced an agreement to sell its Benelux marketing assets in Europe. A gain on the sale is expected to be recorded at the time of close in the third quarter.

     Foreign exchange effects for the first two months of the second quarter reduced earnings by $95 million, reflecting a weakening of the U.S. dollar that continued in June. Foreign exchange effects are reported in the segment results.

Cautionary Statement Relevant To Forward-Looking Information For The Purpose Of “Safe Harbor’’
Provisions Of The Private Securities Litigation Reform Act Of 1995

This Interim Update 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 Interim Update. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements,

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