Chevron Highlights 2015 Performance and Future Plans at Annual Meeting of Stockholders
SAN RAMON, Calif., May 25, 2016 – Chevron Corporation (NYSE: CVX) today provided an overview of the company’s 2015 operational and social performance and how the company is managing through current market conditions at its 2016 Annual Meeting of Stockholders in San Ramon, California.
“Low oil and natural gas prices made 2015 a challenging year for Chevron and the oil and gas industry,” said John Watson, chairman of the board and chief executive officer. “Chevron is taking significant actions to ensure we are well placed to emerge from this challenging operating environment in a position of strength.”
Watson also reiterated the company’s focus on completing major projects under construction, enabling reduced spend and production growth, which will improve free cash flow. Additionally, Chevron is selectively growing in the lower price environment, while continuing a strong and diverse portfolio of Upstream and Downstream assets that position Chevron well for the future.
Stockholders voted on 12 items. As reported during the meeting, the preliminary report of the Inspector of Elections was as follows:
- Item 1: An average of 96 percent of the votes cast were voted for each of the 10 nominees for election to the board of directors.
- Item 2: Approximately 99 percent of the votes cast were voted to ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the company.
- Item 3: Approximately 54 percent of the votes cast were voted to approve, on an advisory basis, the compensation for the company’s named executive officers.
- Item 4: Approximately 90 percent of the votes cast were voted to approve an amendment to the Chevron Corporation Non-Employee Directors’ Equity Compensation and Deferral Plan.
- Item 5: Approximately 73 percent of the votes cast were voted against the stockholder proposal regarding a report on lobbying.
- Item 6: Approximately 92 percent of the votes cast were voted against the stockholder proposal regarding targets to reduce greenhouse gas emissions.
- Item 7: Approximately 59 percent of the votes cast were voted against the stockholder proposal regarding a climate change impact assessment.
- Item 8: Approximately 93 percent of the votes cast were voted against the stockholder proposal regarding a report on reserve replacements.
- Item 9: Approximately 96 percent of the votes cast were voted against the stockholder proposal to adopt a dividend policy.
- Item 10: Approximately 69 percent of the votes cast were voted against the stockholder proposal regarding a report on shale energy operations.
- Item 11: Approximately 81 percent of the votes cast were voted against the stockholder proposal to recommend an independent director with environmental expertise.
- Item 12: Approximately 70 percent of the votes cast were voted against the stockholder proposal to set meetings threshold at 10 percent.
Final voting results will be reported on a Form 8-K, which will be filed with the U.S. 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 Corporation is one of the world’s leading integrated energy companies. Through its 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 petrochemicals and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
CAUTIONARY STATEMENTS 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 or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “may,” “could,” “should,” “budgets,” “outlook,” “on schedule,” “on track” 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, many 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 report. 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 chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; 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 the company’s suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; 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 operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; 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; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 21 through 23 of the company’s 2015 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.
Published: May 2016