Report to Stockholders

David J. O'Reilly

By David J. O'Reilly, Chairman and CEO
Chevron Corporation

Summary Remarks

San Ramon, California, April 25, 2007

As you have seen, we're delivering on our commitments and moving in the right direction. 2006 was our third consecutive year of record earnings, and we have the right strategies to create a strong platform for long-term growth and sustained superior performance.

Now let me talk about some of the key elements of our success — technology, partnerships and, most important, the people of Chevron.

Slide: Technology - Supporting World-Class Performance

Technology plays a critical role in bringing energy resources to market, and Chevron is meeting this challenge on a number of fronts.

We have a unique organization that delivers integrated technologies and services along the whole value chain of our upstream, midstream, downstream and natural gas-based businesses. And it builds upon a powerful combination of proprietary capabilities and strong strategic partnerships.

Technology enables us to make advancements in exploration, deepwater development, natural gas and heavy oil to develop ever-cleaner transportation fuels and to improve energy efficiency.

We are intensive appliers of information technology that enables our proprietary geophysical processes and global communications platform. And technology is creating new business opportunities for the company. In addition to being the world's largest producer of geothermal energy, we're developing new technologies to advance renewable and alternative forms of energy such as biofuels.

Slide: The Partner of Choice

Our company is committed to creating social and economic value in countries where we do business. Our success is measured by our ability to foster and maintain both productive and collaborative relationships and the commitment of our people to deliver world-class performance.

This week we published our fifth Corporate Responsibility Report. Our achievements have been recognized by a number of widely respected organizations.

We advanced our HIV/AIDS policy, developing standardized training, action plans and timelines in support of global deployment.

We continued to actively address climate change. We posted better-than-targeted results for both greenhouse gas emissions and energy efficiency. And our statement on climate change has been expanded.

Lastly, in 2006, we invested over $90 million worldwide to help people improve their lives through education, training and local business development.

Slide: Our People

At the center of our company are the men and women of Chevron. They run our operations safely, reliably and efficiently. Their dedication, ingenuity and collaborative spirit are the drivers of our success.

They are continuing to build value, while expanding the boundaries of energy, by managing investments across the energy spectrum to meet the world's growing demand.

Since we met last year, we have had a year of strong performance and another record year of earnings.

We continue to build on our financial strength, grow our strong asset base, and develop our people around the globe.

The people of Chevron work hard every day to manage our energy portfolio to meet the challenge of securing the energy the world needs. It is this "human energy" that will continue to drive our mission to deliver safe, clean and reliable energy to fuel economic growth and human progress.

Cautionary Statement

Updated: April 2007