2012 Supplement to the Annual Report
Table of Contents
Overview 1 2012 at a Glance 2 Financial Information 9 13 18 21
26 32 34 36 Upstream Highlights United States Other Americas Africa Asia Australia Europe Operating Data Downstream 44 Highlights 45 Refining and Marketing 46 Lubricants 46 Supply & Trading 47 Chemicals 48 Transportation 49 Operating Data 56 57 57 57 Other Businesses Technology Power Generation Mining Chevron Energy Solutions Reference 58 Glossary of Energy and Financial Terms 60 Additional Information
Cover and inside front photos: Production at the Agbami Field in Nigeria is by subsea wells tied back to the floating production, storage and offloading vessel (FPSO). The maximum total liquids production rate at the FPSO is 250,000 barrels per day.
2012 at a Glance
Financial-return objective – Create shareholder value and achieve sustained financial returns from operations that will enable Chevron to outperform its competitors. Enterprise strategies – Invest in people to strengthen organizational capability and develop a talented global workforce that gets results the right way. Execute with excellence through rigorous application of the company’s operational excellence and capital stewardship systems and disciplined cost management. Grow profitably by using competitive advantages to maximize value from existing assets and capture new opportunities. Major business strategies – Upstream – grow profitably in core areas, build new legacy positions and commercialize the company’s equity natural gas resource base while growing a high-impact global gas business. Downstream – improve returns and grow earnings across the value chain. Technology – differentiate performance through technology; invest in profitable renewable energy and energy efficiency solutions.
• Sales and other
operating revenues $231 billion
• Net income attributable
to Chevron Corporation $26 billion $13.32 per share – diluted
• Return on capital employed
• Return on stockholders’
Corporate Safety – Achieved world-class performance in the days-away-from-work metric. Financial – Achieved a total stockholder return that led the peer group for the previous five-year period. Dividends – Paid $6.8 billion in dividends, with 2012 marking the 25th consecutive year of higher annual dividend payouts. Since 2003, the dividend has grown at a compound annual rate of 11 percent over the period. Capital and exploratory expenditures – Invested $34.2 billion in the company’s businesses, including $2.1 billion (Chevron share) of spending by affiliates. Announced 2013 projected outlays of $36.7 billion, including $3.3 billion of affiliate expenditures. Focus continues on exploration and production activities. Stock repurchase program – Continued the company’s common stock repurchases, acquiring $5.0 billion of the company’s shares of common stock. Upstream Exploration – Achieved an exploration drilling success rate of 74 percent. Announced six natural gas discoveries in the Carnarvon Basin offshore Western Australia supporting the company’s long-term growth plan for its liquefied natural gas (LNG) projects. Commenced shale gas drilling programs in Argentina and China. Portfolio additions – Added shelf and deepwater acreage in the U.S. Gulf of Mexico and deepwater acreage in Sierra Leone and Suriname. Acquired interests in two production-sharing contracts in the Kurdistan Region of Iraq. Added acreage in New Mexico and Lithuania, providing further opportunities to explore for shale and unconventional resources. Exchanged interests in several Browse Basin licenses for additional ownership in the Clio and Acme fields in Australia. Production – Produced 2.610 million net oil-equivalent barrels per day, with about 75 percent of the volume outside the United States in more than 20 different countries. Major projects – Continued progress on the company’s...
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