Report to Stockholders - Dave O'Reilly 2007
David J. O'Reilly, Chairman and CEO
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 Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
This presentation 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 presentation. 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" beginning on page 31 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 presentation could also have material adverse effects on forward-looking statements.
U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources," "oil-equivalent resources," "oil in place," "recoverable reserves," and "recoverable resources," among others, may be used in this press release to describe certain oil and gas properties that are not permitted to be used in filings with the SEC.
Published: April 2007