Chevron Press Release - Chevron Ceo Underscores Companys Strong Future
SAN RAMON, Calif., April 28, 1999 -- Chevron Corp. has "the best international growth projects of any of our competitors," Chairman Ken Derr told the Annual Meeting of Stockholders today.
And these projects "will help us generate better financial results than our competitors," he declared. "Growth in production has come from all parts of the world," he added, highlighting operations in West Africa, Kazakhstan and Venezuela.
Derr set a new five-year goal for Chevron to be No. 1 among its competitors in total stockholder return. "We've spent the last decade creating what I think is now a very decentralized, nimble, fast-moving company" that will produce "incredible results," he said.
Derr called 1998 "a tough year," noting that the price of oil had dropped from $25 in early 1997 to $11 by late 1998 -- the most significant decline since 1986. "We can't rely on oil prices remaining above $15," he said. "So we've developed plans to deal with low prices over the next two or three years."
Chevron's plans include funding growth projects while minimizing spending elsewhere, maintaining a strong balance sheet, and aggressively reducing costs.
Derr listed a series of accomplishments that underscore Chevron's "very strong future:"
- Average stockholder return over the last five years was 17.8 percent.
- International crude oil production has increased 71 percent since 1992 to 877,000 barrels a day -- the highest growth rate among major competitors.
- Operating expenses for the year were $2.4 billion less than in 1991, and dropped another $80 million in the first quarter of 1999.
- U.S. refining and marketing had its second strong year in a row, with sales for both branded gasoline and convenience stores steadily increasing.
Vice Chairman Jim Sullivan explained how Chevron Products Co. is "redefining our business in ways that strengthen the Chevron brand. We don't just sell gasoline. We provide convenience to motorists."
Looking at international exploration and production, Vice Chairman Dave O'Reilly said Chevron has "tremendous opportunities… even in the current business climate." The company's goal "is to balance short-term earnings with long-term growth," he explained. "I'm confident we'll be successful."
The Annual Meeting was held for the first time at Chevron's major San Ramon, Calif., office park, which houses about 2,700 employees.
Updated: April 1999