press release

Chevron Press Release - Chevron CEO Bullish on Company's Ability to Meet Growing Energy Demand

SAN RAMON, Calif., April 26, 2000 -- Chevron Corp. is focusing on key strategies to enhance company performance and is well positioned to participate in growing worldwide energy demand, Chairman Dave O'Reilly told the Annual Meeting of stockholders today.

O'Reilly stated that Chevron is setting its sights on a new five-year goal to be No. 1 among its competitors in total stockholder return.

The company's financial targets include growing earnings per share by approximately 15 percent a year in the near term and achieving a minimum 12 percent return on capital employed per year.

"Given the increased level of competition in the petroleum industry, this is an aggressive goal, but it's one Chevron has achieved before, and it's one I am confident Chevron can achieve again," he added.

Chevron's priorities for improving performance are geared toward increased levels of operational excellence, cost reduction, capital stewardship, and profitable growth. Organizational capability, O'Reilly said, is the driver for these priorities.

O'Reilly expressed optimism about the future of the petroleum industry.

"We're very bullish about the outlook for energy demand," he said. "Economies are recovering worldwide. Most of the Asian economies have resumed economic growth and energy demand has been increasing."

According to O'Reilly, Chevron plans to invest more than $25 billion in its worldwide operations during the next five years. Maximizing return on that investment by executing projects safer, faster and at lower costs than competitors is a key priority in creating stockholder value, he said.

Chevron plans to continue growing its base businesses -- crude oil and natural gas production -- while pursuing opportunities to selectively grow other businesses such as chemicals, electrical power and Internet technology. He cited the 1999 acquisitions of companies in Thailand and Argentina as moves that helped Chevron establish a presence in two growing markets.

Vice Chairman Jim Sullivan discussed several projects that represent significant growth potential for Chevron, including ongoing upstream success in Africa, a new chemicals joint venture with Phillips Petroleum, plans by affiliate Dynegy to expand the electric power market and retail sales growth that is increasing at twice the industry average.

Vice Chairman Dick Matzke appeared in a videotaped segment. Matzke highlighted progress of Chevron's Tengizchevroil joint venture in Kazakhstan where crude oil production has grown to 200,000 barrels per day. He also said that the 800-mile Caspian pipeline that will transport Tengiz crude to world markets will be completed next year.

"Our story is not just growth, but also safe growth," he said, noting that the joint venture has worked more than seven million hours without a lost-time incident.

Updated: April 2000