press release

Chevron Press Release - Chevron CEO Hails 2000 Record-Setting Performance, Solid Outlook

LOS ANGELES, April 25, 2001 -- A combination of strong financial, operational and safety performance delivered outstanding results for Chevron in 2000, Chairman and Chief Executive Officer Dave O'Reilly told stockholders at the company's annual meeting here today.

"Our financial performance last year was superb, and our operations set records for safety, reliability and production," said O'Reilly. "I'm very positive about the outlook for our company, and very proud of the commitment and performance of the many thousands of Chevron people who have contributed to our success."

The guiding principles of operational excellence, cost reduction, capital stewardship and profitable growth -- and building organizational capability in each category -- are critical to the company's future success, according to O'Reilly.

In 2000, Chevron recorded the highest net income in the company's 121-year history -- $5.2 billion -- which is reflected in the company's 150 percent increase in earnings per share, said O'Reilly.

Although these achievements were helped by sustained high prices for crude oil and natural gas -- and strong refining margins, particularly in the United States -- the company's operating performance also contributed, said O'Reilly. He noted that:

  • Oil and gas production has increased about 3 percent each year over the past five years;
  • The company replaced more oil and gas than it produced -- more than 150 percent in 2000 -- for the eighth consecutive year;
  • Refining and marketing improved its performance due to higher margins and improved reliability;
  • Chevron significantly strengthened its balance sheet through debt reduction and share buybacks.

O'Reilly discussed the planned Chevron/Texaco merger, which will create one of the largest and most competitive international energy companies. Currently the companies are working with the Federal Trade Commission (FTC) to supply requested information. Teams are making excellent progress in planning the integration of Chevron, Texaco and Caltex, he said.

"As soon as we receive FTC approval for our proposed merger with Texaco, the new ChevronTexaco will be even better positioned to fulfill the role of developing energy supplies and services. We will have the assets, financial strength and people to make a difference," said O'Reilly.

Vice Chairman Dick Matzke provided stockholders with an overview of Chevron's worldwide operations, highlighting the company's Tengizchevroil partnership in Kazakhstan, in which Chevron holds a 50 percent interest, as the most successful joint venture to date in the former Soviet Union.

Chevron continues to be a major partner in several important operations in Africa, Latin American and Europe, said Matzke. Chevron is the leading petroleum company in Angola and operates more than 60 percent of Angola's total production, he said.

Matzke also noted that Chevron is the project leader for the West African Gas Pipeline, projected by 2004 to start delivering Nigerian natural gas to nearby Benin, Togo and Ghana to help generate electricity for new industry and jobs.

In Latin America, Chevron is the largest private oil field operator in Venezuela, and is pursuing opportunities in Argentina, via the 2000 acquisition of Petrolera Argentina San Jorge. In Brazil, Chevron won four promising deepwater blocks.

Britannia Field in the North Sea is a major asset that produces about 8 percent of U.K. gas demand, and in Norway Chevron now holds interests in seven offshore blocks, said Matzke.

He added that Chevron continues to invest in the Gulf of Mexico -- still a world-class opportunity. He also cited new gas production in Canada and new exploratory prospects in the Northwest Territories as recent high points.

"Our portfolio represents tremendous potential for growing our company and building value for our stockholders," said Matzke.

See David J. O'Reilly's April 25 speech,

Updated: April 2001