e8vk
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 9, 2009
Chevron Corporation
(Exact name of registrant as specified in its charter)
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Delaware
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1-368-2
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94-0890210 |
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(State or other jurisdiction
of incorporation )
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(Commission File Number)
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(I.R.S. Employer No.) |
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6001 Bollinger Canyon Road, San Ramon, CA
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94583 |
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(Address of principal executive offices)
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(Zip Code) |
Registrants 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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
On July 9, 2009, Chevron Corporation issued a press release providing a second quarter 2009 interim
update. 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 9, 2009
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CHEVRON CORPORATION
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By |
/s/ M.A. Humphrey
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M. A. Humphrey, Vice President and |
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Comptroller
(Principal Accounting Officer and
Duly Authorized Officer) |
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EXHIBIT INDEX
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99.1
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Press release issued July 9, 2009. |
exv99w1
EXHIBIT 99.1
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Chevron Corporation
Policy, Government and Public Affairs
Post Office Box 6078
San Ramon, CA 94583-0778
www.chevron.com |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CHEVRON ISSUES INTERIM UPDATE FOR SECOND QUARTER 2009
SAN RAMON, Calif., July 9, 2009 Chevron Corporation (NYSE:CVX) today reported in its
interim update that upstream earnings for the second quarter 2009 compared with the first quarter
are expected to benefit from an increase in prices for crude oil, largely offset by substantial
unfavorable foreign currency effects. Downstream results are projected to be significantly lower
than the first quarter.
Basis for Comparison in Interim Update
The interim update contains certain industry and company operating data for the second quarter
2009. The production volumes, realizations, margins and certain other items in the report are
based on a portion of the quarter and are not necessarily indicative of Chevrons quarterly results
to be reported on July 31, 2009. The reader should not place undue reliance on this data.
Unless noted otherwise, all commentary is based on two months of the second quarter
2009 versus full first quarter 2009 results.
UPSTREAM EXPLORATION AND PRODUCTION
The table that follows includes information on production and price indicators for crude oil
and natural gas for specific markets. Actual realizations may vary from indicative pricing due to
quality and location differentials and the effect of pricing lags. International earnings are
driven by actual liftings, which may differ from production due to the timing of cargoes and other
factors.
- MORE -
-2-
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2008 |
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2009 |
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2Q thru |
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2Q thru |
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2Q |
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3Q |
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4Q |
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1Q |
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May |
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Jun |
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U.S. Upstream |
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Net Production: |
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Liquids |
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MBD |
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438 |
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409 |
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399 |
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441 |
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453 |
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n/a |
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Natural Gas |
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MMCFD |
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1,588 |
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1,431 |
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1,320 |
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1,379 |
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1,372 |
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n/a |
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Total Oil-Equivalent |
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MBOED |
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702 |
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647 |
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619 |
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671 |
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682 |
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n/a |
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Pricing: |
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Avg. WTI Spot Price |
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$/Bbl |
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123.78 |
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118.25 |
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59.14 |
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43.19 |
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54.36 |
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59.71 |
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Avg. Midway Sunset Posted Price |
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$/Bbl |
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111.25 |
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105.54 |
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45.07 |
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34.44 |
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48.11 |
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52.69 |
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Nat. Gas-Henry Hub Bid Week Avg. |
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$/MCF |
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10.94 |
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10.27 |
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6.96 |
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4.91 |
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3.47 |
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3.49 |
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Nat. Gas-CA Border Bid Week Avg. |
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$/MCF |
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9.82 |
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9.34 |
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4.97 |
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4.01 |
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2.99 |
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3.00 |
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Nat. Gas-Rocky Mountain Bid Week Avg. |
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$/MCF |
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8.41 |
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5.85 |
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3.46 |
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3.20 |
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2.20 |
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2.25 |
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Average Realizations: |
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Crude |
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$/Bbl |
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113.97 |
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112.22 |
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51.43 |
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36.85 |
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48.79 |
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n/a |
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Liquids |
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$/Bbl |
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108.67 |
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107.22 |
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49.13 |
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36.00 |
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46.09 |
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n/a |
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Natural Gas |
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$/MCF |
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9.84 |
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8.64 |
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5.23 |
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4.14 |
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3.26 |
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n/a |
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International Upstream |
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Net Production: |
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Liquids |
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MBD |
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1,207 |
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1,167 |
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1,308 |
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1,360 |
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1,356 |
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n/a |
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Natural Gas |
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MMCFD |
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3,621 |
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3,618 |
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3,493 |
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3,642 |
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3,580 |
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n/a |
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Mined Bitumen |
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MBD |
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24 |
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26 |
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31 |
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25 |
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26 |
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n/a |
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Total Oil-Equivalent incl. Mined Bitumen |
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MBOED |
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1,835 |
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1,796 |
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1,921 |
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1,992 |
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1,979 |
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n/a |
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Pricing: |
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Avg. Brent Spot Price 1 |
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$/Bbl |
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121.17 |
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115.09 |
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55.48 |
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44.46 |
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53.82 |
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59.13 |
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Average Realizations: |
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Liquids |
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$/Bbl |
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110.44 |
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102.73 |
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46.79 |
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39.43 |
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48.83 |
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n/a |
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Natural Gas |
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$/MCF |
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5.44 |
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5.37 |
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5.10 |
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4.21 |
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3.64 |
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n/a |
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1 |
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The Avg. Brent Spot Price is based on Platts daily assessments, using Chevrons
internal formula to produce a quarterly average. |
Total U.S. oil-equivalent production during the first two months of the second quarter
increased 11,000 barrels per day mainly due to activities in the Gulf of Mexico that included
ongoing restoration of operations damaged by hurricanes last September, the ramp-up of production
at Blind Faith, and the start-up at Tahiti.
International net oil-equivalent production decreased 13,000 barrels per day. The liquids
component of oil-equivalent production decreased 4,000 barrels per day as the effects of planned
field maintenance in Kazakhstan and Canada more than offset increased volumes associated with the
continued ramp-up at the Agbami Field offshore Nigeria. Natural gas production decreased about 60
million cubic feet per day, largely reflecting lower sales in Thailand.
- MORE -
-3-
U.S. crude oil realizations for the first two months of the second quarter increased $11.94
per barrel to $48.79. International liquids realizations increased $9.40 to $48.83 per barrel.
U.S. natural gas realizations declined $0.88 to $3.26 per thousand cubic feet, while average
international natural gas realizations decreased $0.57 per thousand cubic feet to $3.64.
International upstream results for the first two months of the second quarter included
unfavorable foreign currency effects in excess of $400 million resulting from the weakening of the
U.S. Dollar against most other major currencies, a trend that continued in June. Additionally, the
international upstream segment is expected to reflect charges of approximately $100 million
associated with well write-offs in the quarter. Worldwide upstream depreciation expense is
currently forecast to be in line with first quarter 2009 results.
DOWNSTREAM REFINING, MARKETING AND TRANSPORTATION
The table that follows includes industry benchmark indicators for refining and marketing
margins. Actual margins realized by the company may differ significantly due to location and
product mix effects, planned and unplanned shutdown activity and other company-specific and
operational factors.
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2008 |
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2009 |
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2Q thru |
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2Q thru |
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2Q |
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3Q |
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4Q |
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1Q |
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May |
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Jun |
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Downstream |
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Market Indicators: |
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$/Bbl |
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Refining Margins |
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U.S. West Coast Blended 5-3-1-1 |
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27.70 |
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20.04 |
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15.29 |
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19.20 |
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14.51 |
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15.18 |
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U.S. Gulf Coast Maya 5-3-1-1 |
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39.17 |
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29.54 |
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18.96 |
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14.74 |
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12.27 |
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13.46 |
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Singapore Dubai 3-1-1-1 |
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9.75 |
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7.70 |
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6.07 |
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5.49 |
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4.81 |
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4.08 |
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N.W. Europe Brent 3-1-1-1 |
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5.30 |
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6.50 |
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6.58 |
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4.18 |
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4.48 |
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4.36 |
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Marketing Margins2 |
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U.S. West Weighted DTW to Spot |
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1.18 |
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8.80 |
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9.11 |
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0.83 |
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2.09 |
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3.61 |
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U.S. East Houston Mogas Rack to Spot |
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2.69 |
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1.99 |
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3.64 |
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2.19 |
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2.67 |
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2.91 |
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Asia-Pacific / Middle East / Africa |
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1.85 |
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4.88 |
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6.87 |
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4.67 |
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4.73 |
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n/a |
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Actual Volumes: |
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U.S. Refinery Input |
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MBD |
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816 |
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922 |
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930 |
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938 |
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932 |
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n/a |
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Intl Refinery Input |
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MBD |
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952 |
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976 |
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973 |
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985 |
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953 |
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n/a |
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U.S. Branded Mogas Sales |
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MBD |
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596 |
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601 |
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606 |
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613 |
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639 |
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n/a |
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2 |
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Marketing margins, formerly shown for other international areas, have been
discontinued. With the sale of the Brazil fuels marketing business in the first quarter
2009, approximately 70% of international marketing sales are in the Asia-Pacific / Middle
East / Africa area. |
For the full second quarter, the U.S. refining indicator margins were down sharply, more than
offsetting an increase in marketing margins. Outside the United States, refining indicator margins
were mixed. Marketing margins in the Asia-Pacific / Middle East / Africa area were nearly flat.
During the first two months of the second quarter, daily U.S. refinery crude-input volumes
were essentially unchanged. Outside the United States, refinery crude-input volumes were down
32,000 barrels per day, or about three percent, primarily due to planned maintenance at refineries
in South Korea and Singapore.
- MORE -
-4-
International downstream results in the full second quarter are expected to include adverse
timing effects due to the substantial increase in crude oil and refined product prices between the
beginning and end of the quarter. Earnings in the full second quarter are expected to include
gains of roughly $150 million from the previously announced sales of marketing businesses in Kenya
and Cameroon, approximately $250 million less than asset sales gains recorded in the first quarter.
CHEMICALS
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2008 |
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2009 |
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2Q thru |
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2Q thru |
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2Q |
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3Q |
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4Q |
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1Q |
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May |
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Jun |
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Chemicals Source: CMAI |
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Cents/lb |
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Ethylene Industry Cash Margin |
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11.21 |
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15.46 |
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14.93 |
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7.16 |
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7.03 |
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6.62 |
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HDPE Industry Contract Sales Margin |
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14.52 |
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23.21 |
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22.28 |
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17.91 |
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23.78 |
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24.25 |
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Styrene Industry Contract Sales Margin |
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11.32 |
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14.36 |
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16.04 |
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14.80 |
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14.86 |
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13.63 |
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Note: Prices, economics, and views expressed by CMAI are strictly the opinion of CMAI and Purvin &
Gertz and are based on information collected within the public sector and on assessments by CMAI
and Purvin & Gertz staff utilizing reasonable care consistent with normal industry practice. CMAI
and Purvin & Gertz make no guarantee or warranty and assume no liability as to their use.
In the Chemicals segment, full second quarter sales volumes are expected to increase.
Indicator margins were mixed between periods.
ALL OTHER
The companys general guidance for the quarterly net after-tax charges related to corporate
and other activities is between $250 million and $350 million. Due to foreign currency effects and
the potential for irregularly occurring accruals related to income taxes, pension settlements and
other matters, actual results may significantly differ from the guidance range or current
projections. Total net charges in the second quarter are currently expected to be lower than the
guidance range.
# # #
NOTICE
Chevrons discussion of second quarter 2009 earnings with security analysts will take place on
Friday, July 31, 2009, 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 Chevrons website
at www.chevron.com under the Investors section. Additional financial and operating
information will be contained in the Earnings Supplement that will be available under Events &
Presentations in the Investors section on the website.
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-5-
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 Chevrons operations that are
based on managements 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 the companys 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, 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, marketing and chemicals
margins; actions of competitors or regulators; timing of exploration expenses; timing of crude-oil
liftings, 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 companys 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
companys 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 or assessments 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 companys acquisition or disposition of assets; gains and losses from asset
dispositions or impairments; government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations;
foreign currency movements compared with the U.S. dollar; 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 30 and 31 of the companys 2008 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.