press release

Chairman and CEO David J. O'Reilly Addresses First Meeting of ChevronTexaco Stockholders

  • Cites company's achievement of initial $1.2 billion annual synergy target rate, on track for $1.8 billion by early 2003;
  • Details financial and operational highlights;
  • Outlines company's vision "to be the global energy company most admired for its people, partnership and performance."

SAN RAMON, CALIF., May 15, 2002 -- ChevronTexaco Chairman and Chief Executive Officer David J. O'Reilly, addressing the new company's first annual meeting of stockholders, outlined the "tremendous progress" the company has made since completing its merger in October 2001.

Addressing stockholders at the company's future headquarters in San Ramon, Calif., O'Reilly said, "One important first quarter milestone is the achievement of our interim synergy target rate of $1.2 billion ahead of our original timetable, and we are making tremendous progress toward our objective of $1.8 billion by early next year.

"Our primary goal is to be No. 1 among our peers in total stockholder return," said O'Reilly. "I am pleased to report that for the period January 1, 2000, through May 13, 2002, we are the leader in total stockholder return among our peers, and we are working hard to maintain that position."

O'Reilly made a point of acknowledging ChevronTexaco employees and their efforts in more than 180 countries. "ChevronTexaco is more than a collection of assets. We are a team of people from many cultures and backgrounds, all brought together by a shared passion for doing the right things in the right way," he said. "People who have come together from three separate companies and many different cultures, and have so quickly created not simply a bigger energy company, but a better one.

"I am excited about our future, confident in our ability to achieve our goals and proud to be part of this great new company."

Seven proposals were before ChevronTexaco stockholders this year, and a preliminary report of stockholder votes is as follows:

  • ChevronTexaco's 15 incumbent directors were elected for a one-year term by the vote of more than 774 million shares, or 97 percent of shares voted.
  • The appointment of PricewaterhouseCoopers LLP as independent public accountants was ratified by more than 766 million shares, or 97 percent of shares voted.
  • Performance-based provisions of the management incentive plan were approved by more than 713 million shares, or 90 percent of shares voted.
  • Performance-based provisions of the long-term incentive plan were approved by more than 705 million shares, or 89 percent of shares voted.
  • 94 percent of the votes cast were against a stockholder proposal to report on bioaccumulative halogenated pollutants.
  • 92 percent of the votes cast were against a stockholder proposal to report on potential environmental damage to The Arctic National Wildlife Refuge (ANWR).
  • 53 percent of the votes cast were against a stockholder proposal to submit the Rights Plan to a stockholder vote.

Final voting results will be reported in ChevronTexaco's second quarter 10Q to be filed with the SEC in August 2002.

More information about ChevronTexaco may be found at Specific information about the proposals before ChevronTexaco stockholders this year may be found in the Investor Relations section of the Web site in the "Notice of the 2002 Annual Meeting and the 2002 Proxy Statement."

This news release contains forward-looking statements relating to ChevronTexaco's activities that are based on management's current expectations, estimates and projections about the petroleum industry. Words such as "vision," "objective," "goal," 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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: May 2002