press release

Chairman and CEO David O'Reilly Tells Stockholders ChevronTexaco is Well-Positioned for the Future

Company Announces Preliminary Results of Votes on Six Proposals

  • Cites achievements from the merger
  • Details financial and operational highlights
  • Reaffirms commitment to be No. 1 among competitors in total shareholder return for the period 2000 through 2004

MIDLAND, Texas, May 22, 2003 -- Addressing the annual stockholders' meeting, ChevronTexaco Chairman and CEO David J. O'Reilly reported that ChevronTexaco is "up to the challenge of delivering the performance stockholders expect of us and we expect of ourselves." Strong operating performance in the first quarter of 2003 led to a 19 percent annualized return on capital employed.

O'Reilly commented on a number of other accomplishments the company achieved over the past year, including:

  • Successfully completing its merger and operating today as one company with common systems, policies and practices. In addition, the company has achieved an annual synergy savings rate of $2.2 billion -- compared to $1.2 billion originally estimated.
  • Continuing its record of success in more than replacing its worldwide oil and natural gas equivalent production.
  • Having its best exploration program in recent years, including recently announced major discoveries in the Gulf of Mexico and offshore Australia.

O'Reilly said the company is moving forward with an important initiative to create a global natural gas business. He cited ChevronTexaco's strong natural gas positions in Australia, West Africa and the United States, as well as the company's technologies and infrastructure for producing and delivering gas.

O'Reilly reiterated the company's strong commitment to enhancing stockholder value and said the company has aggressive goals for improving return on capital employed.

Vice Chairman Peter Robertson described major projects under way in the upstream business. He said new production would begin this year from the Athabasca oil sands in Canada, and in Chad-Cameroon, and production is increasing at the Karachaganak development in Kazakhstan. "From now through 2007, we'll be steadily bringing on major new oil and gas developments that will enable us to maintain a strong production profile well into the future," said Robertson.

Reviewing the company's downstream performance in 2002, Executive Vice President Patricia Woertz said that ChevronTexaco has built a platform for greater profitability. Among successes in 2002, she said the downstream moved quickly to capture efficiencies from the merger and was continuing to lower costs.

Six proposals were voted on by ChevronTexaco stockholders and a preliminary report of the Inspector of Election is as follows:

  • Item number 1: More than 703 million shares, or 77 percent of the votes cast, were voted in favor of the 14 nominees for election to the Board of Directors.
  • Item number 2: More than 851 million shares, or 93 percent of the votes cast, were voted for the appointment of PricewaterhouseCoopers LLP as the company's independent accountants.
  • Item number 3: More than 552 million shares, or 60 percent of the votes cast, were voted for the approval of the Non-Employee Directors' Equity Compensation and Deferral Plan.
  • Item number 4: More than 412 million shares, or 55 percent of the votes cast, were voted in favor of the stockholder proposal to submit the stockholder rights plan to a stockholder vote.
  • Item number 5: More than 508 million shares, or 68 percent of the votes cast, were voted against the stockholder proposal to report on renewable energy.
  • Item number 6: More than 590 million shares, or 79 percent of the votes cast, were voted against the stockholder proposal to report on CEO compensation.

Final voting results will be reported in ChevronTexaco's second quarter 10Q, which will be filed with the Securities and Exchange Commission in August 2003.

More information about ChevronTexaco may be found on the ChevronTexaco Web site. 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 about ChevronTexaco's goals and initiatives. The statements are based on management's current plans, expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. 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 2003