Chevron Highlights 2011 Performance, Corporate Responsibility and Future Growth at Annual Meeting of Stockholders
SAN RAMON, CA, May 30, 2012 – Chevron Corporation (NYSE: CVX) highlighted the company's 2011 performance and discussed future growth plans at its 2012 Annual Meeting of Stockholders.
"Chevron has tremendous performance momentum and a unique combination of strategic advantages," said John Watson, chairman and CEO. "We have advantages today because of the thoughtful, deliberate actions we have taken and the capabilities we have built over many years. We are also looking ahead to the next decade, adding opportunities to our portfolio that are expected to drive yet another generation of profitable growth."
Watson discussed Chevron's strong 2011 financial and operational performance, which produced earnings of $26.9 billion, a 21.6 percent return on capital employed and cash flow from operations of $41 billion. Watson said that Chevron led its peers in total stockholder returns over the past five years, besting the S&P 500. The company increased its quarterly dividend by 12.5 percent in 2011. Chevron announced another quarterly dividend increase (11 percent) at the end of April 2012. The year 2012 also marks 100 years of continuous regular dividend payments for our stockholders.
Watson reinforced Chevron's long-standing culture of safety and environmental stewardship, and resulting industry-leading performance. He also highlighted Chevron's commitment to partnerships that address health, education and economic development issues in the communities where the company operates, and Chevron's global social investments of approximately $1 billion over the past six years.
George Kirkland, vice chairman and executive vice president for Upstream and Gas, discussed Chevron's capital expenditure program. Chevron is investing $32.7 billion in 2012, with approximately 87 percent of that amount directed to upstream activities as the company continues to develop an enviable project queue. Chevron is increasing exploration activity around the world including evaluation of significant acreage recently added to its upstream portfolio. Downstream investments comprise 11 percent of the total capital expenditure program.
Over the next three years, 28 projects with a Chevron share of capital of more than $250 million each are scheduled to start production, 11 of which have a net Chevron share of capital exceeding $1 billion. Chevron has already started two of its four 2012 major capital projects in the Gulf of Mexico and Nigeria. Two other major capital projects are scheduled to start up later this year: one in Angola and one in Nigeria. Additionally, over the next three years, the company expects to make final investment decisions on 12 more projects, each with a Chevron share in excess of $1 billion in capital.
Kirkland highlighted progress on Chevron's queue of major capital projects in deep water, unconventional energy and liquefied natural gas (LNG).
- Several U.S. Gulf of Mexico projects will help drive deepwater production growth. At Jack/St. Malo and Big Foot, fabrication of hull and topsides is under way and drilling of initial development wells continues.
- Chevron holds more than 8 million acres in unconventional oil and natural gas plays and is exploring its strong positions in Marcellus and Utica shale formations in the United States and additional positions in Europe and in Argentina, Canada, and China.
- Chevron's Australia LNG portfolio is consistently reaching project milestones. At Gorgon, the first modules of Train 1 are projected to arrive on Barrow Island later this year, along with construction of a domestic gas pipeline and completion of five development wells in the Gorgon Field. At Wheatstone, activity is ramping up with more than $13 billion in contracts awarded. Construction of roads and key infrastructure is already under way.
The improved profitability of Downstream and Chemicals was also highlighted. The business exceeded its 2012 goal for improving returns a year ahead of plan. Key growth projects were reviewed, including a new base-oil facility in Pascagoula, Miss., which will make Chevron the world's largest producer of premium base oil, and a world-class ethylene cracker in Saudi Arabia, which will make Chevron Phillips Chemical Company the world's largest producer of high-density polyethylene. Chevron's Oronite plant in Singapore, already the largest additives facility in Asia, will see its capacity double after a final investment decision on future expansion was reached earlier this year.
Stockholders voted on 11 items, supporting the board's recommendation on each. As of May 30, 2012, the preliminary report of the Inspector of Election was as follows:
- Item 1: More than 1.2 billion shares, or approximately 90 percent of the votes cast, were voted for each of the 11 nominees for election to the board of directors.
- Item 2: More than 1.6 billion shares, or approximately 99 percent of the votes cast, were voted to ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm.
- Item 3: Approximately 95 percent of the votes cast were voted to approve, on an advisory basis, the named executive officer compensation.
- Item 4: Approximately 61 percent of the votes cast were voted against the stockholder proposal regarding exclusive forum provisions.
- Item 5: Approximately 62 percent of the votes cast were voted against the stockholder proposal regarding designation of an independent chairman.
- Item 6: Approximately 77 percent of the votes cast were voted against the stockholder proposal regarding lobbying disclosure.
- Item7: Approximately 77 percent of the votes cast were voted against the stockholder proposal regarding guidelines for country selection guidelines.
- Item 8: Approximately 73 percent of the votes cast were voted against the stockholder proposal regarding hydraulic fracturing.
- Item 9: Approximately 92 percent of the votes cast were voted against the stockholder proposal regarding accident risk oversight.
- Item 10: Approximately 70 percent of the votes cast were voted against the stockholder proposal regarding special meetings.
- Item 11: Approximately 77 percent of the votes cast were voted against the stockholder proposal regarding appointment of independent director with environmental expertise.
All legal requirements for the meeting were met. Final voting results will be reported on Form 8-K, which will be filed with the Securities and Exchange Commission and available at www.chevron.com. Specific information about the proposals before Chevron stockholders this year may be found in the Investor Relations section of the company's website under Stockholder Services – "Annual Meeting Materials."
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "forecasts," "projects," "believes," "seeks," "schedules," "estimates," "budgets," "outlook" 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 the company's 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. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future litigation; the company's future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading "Risk Factors" on pages 29 through 31 of the company's 2011 Annual Report on Form 10-K. In addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.
Published: May 2012