press release

Chevron Press Release - Chevron Reports First Quarter Earnings Of $459 Million

SAN FRANCISCO, April 25 -- Chevron Corporation today reported first quarter net income of $459 million ($.70 per share), up 18 percent from $388 million ($.60 per share) earned in the first quarter of 1994.

Special charges increased 1995 reported earnings by $63 million, but reduced 1994 earnings $36 million. Excluding special items, 1995 first quarter results of $396 million ($.61 per share) were 7 percent lower than comparably adjusted 1994 earnings of $424 million ($.65 per share).

"We had very strong earnings in all our major business segments, with the exception of U.S. downstream," said Chairman and CEO Ken Derr. "In fact, absent the U.S. downstream results, the first quarter was the second best operational quarter in the last decade. Our chemicals business posted a record quarter and our international upstream operating results were near record levels. Our U.S. upstream maintained its strong performance despite low natural gas prices. But all these achievements could not overcome the poor results of our U.S. refining and marketing operations, which lost over $90 million."

Derr said, "Unfortunately, very weak industry margins, particularly on the Gulf Coast, were aggravated by significant refinery downtime associated with major turnarounds at two core refineries, as well as some unscheduled downtime. Maintenance costs related to this downtime were about $38 million after tax, and more costly product purchases were required to supply our marketing system.

"We continue to benefit from our cost reduction programs," said Derr. "Total ongoing operating and administrative expenses were down, despite higher refinery maintenance costs. Also the sales of our Philadelphia and Port Arthur refineries have lowered the company's cost structure."

Total revenues for the quarter were $9.0 billion, up 9 percent from $8.3 billion in last year's first quarter. Higher prices for crude oil, refined products and chemicals more than offset lower refined product sales volumes and natural gas prices.


Exploration and Production

U.S. exploration and production net earnings were $150 million, compared with $124 million earned in the 1994 first quarter, which included a $15 million special charge for the resolution of a regulatory issue.

Operationally, the effects of lower natural gas prices and lower production volumes were offset by the benefit of higher crude oil prices and strong natural gas liquids sales. Depreciation expense declined, reflecting lower production volumes, and exploration expense was down because of lower well write-offs.

Average crude oil realizations of $15.11 per barrel were up $3.55 from $11.56 in the 1994 first quarter, but average natural gas prices of $1.45 per thousand cubic feet were down $.68 from $2.13 in the same prior year period.

Net liquids production declined 5 percent to 356,000 barrels per day due to normal field declines. Net natural gas production declined 12 percent to 1.9 billion cubic feet per day due to normal field declines and production curtailments caused by weak demand.

International exploration and production net earnings for the first quarter were $172 million, a strong increase over the $111 million earned in the prior year first quarter. Results for 1995 included a special charge of $7 million for employee severance in connection with a work force reduction program at the company's Canadian operations.

The earnings increase reflected higher crude oil prices and higher crude oil and natural gas production volumes. Net liquids production volumes increased 7 percent to 648,000 barrels per day, with higher volumes in Angola, the North Sea and Kazakhstan. Natural gas production increased 11 percent to 592 million cubic feet per day, due to higher volumes in Canada and Kazakhstan.


Refining and Marketing

U.S. refining and marketing had a net loss of $102 million in the first quarter compared with earnings of $98 million in the 1994 first quarter. Both quarters' results included special charges for environmental remediation - $10 million in 1995 and $21 million in 1994.

Very weak industry fundamentals coupled with refinery turnarounds at two of our core refineries negatively affected earnings. Product prices did not fully reflect increased crude oil costs. Although both quarters experienced refinery downtime for maintenance, 1995 results included higher maintenance costs and significantly lower refinery utilization, which required more costly third-party product purchases to supply the company's marketing system. Also, market conditions have prevented the recovery of increased manufacturing costs of reformulated gasolines, which comprised about 22 percent of the company's gasoline sales volumes.

Total refined product sales volumes of 1.1 million barrels per day fell 16 percent from the 1994 first quarter, although sales through the company's retail marketing system were maintained at about the same level. Lower fuels production, primarily due to the sales of the Philadelphia refinery in August 1994 and the Port Arthur refinery in late February this year, curtailed unbranded bulk sales.

International refining and marketing net earnings increased to $156 million from $63 million in last year's first quarter; however, 1995 earnings benefited a net $80 million from special items, principally a gain related to the sale of land by a Caltex affiliate in Japan. Higher Caltex results were more than offset by lower earnings in Canada and the United Kingdom. Foreign exchange gains were $21 million, mostly Caltex related, compared with $1 million of foreign exchange gains in the prior year quarter. Sales volumes increased 4 percent to almost 1.0 million barrels per day, primarily in the Caltex areas of operations.


Chemicals

Chemicals posted record quarterly earnings of $163 million, up from $26 million in the first quarter of 1994, as strong industry-wide demand continued. The company achieved record production and sales volumes, and prices for major products were strong.

The major factor in the earnings improvement was from the olefins operations, which benefited from increased sales volumes and higher prices for ethylene and polyethylenes. In addition, aromatics results reflected strong demand and prices for styrene and benzene.

The company's restructurings in recent years to concentrate on its core petrochemicals business and cost reduction initiatives have positioned it to improve its competitive performance during the current cycle of significant improvement in industry fundamentals.


Corporate and Other

Corporate and other incurred net charges of $92 million compared with charges of $49 million in the comparable prior year quarter. Foreign exchange losses were $13 million in the 1995 quarter compared with $2 million in 1994's comparable period. The remaining increase was primarily due to increased interest expense, resulting from higher average debt levels and higher interest rates.


Capital and Exploratory Expenditures

Capital and exploratory expenditures, including the company's share of affiliates' expenditures, were $987 million in the first quarter, down from $1.059 billion spent in the first quarter of 1994.


CHEVRON CORPORATION
FINANCIAL REVIEW



                                                     (MILLIONS OF DOLLARS) CONSOLIDATED STATEMENT OF INCOME 

  (unaudited) 

                                                         First Quarter

REVENUES:                                             1995         1994

 Sales and Other Operating Revenues  (1)              $ 8,820    $ 8,105

 Equity in Net Income of Affiliated Companies             231        107

 Other Income, Net                                        (7)         52

                                                        9,044      8,264

COSTS AND OTHER DEDUCTIONS:  

 Purchased Crude Oil and Products                       4,518      3,684

 Operating Expenses                                     1,365      1,497

 Exploration Expenses                                      71        105

 Selling, General and Administrative Expenses             301        308

 Depreciation, Depletion and Amortization                 576        592

 Taxes Other Than on Income  (1)                        1,373      1,345

 Interest and Debt Expense                                110         73

                                                        8,314      7,604

Income Before Income Tax Expense                          730        660

  Income Tax Expense                                      271        272

NET INCOME                                              $ 459      $ 388PER SHARE AMOUNTS:  (2)

NET INCOME                                             $ .70     $ .60

DIVIDENDS                                            $ .4625   $ .4625Average Common Shares Outstanding (000's)  (2)     651,895     651,625

EARNINGS BY MAJOR OPERATING AREA

  (unaudited)                                            First Quarter

                                                          1995    1994

Exploration and Production

 United States                                          $ 150    $ 124

 International                                            172      111

   Total Exploration and Production                       322      235

Refining, Marketing and Transportation

 United States                                           (102)      98

 International                                            156       63

   Total Refining, Marketing and Transportation            54      161

   Total Petroleum Operations                             376      396

Chemicals                                                 163       26

Coal and Other Minerals                                    12       15

Corporate and Other  (3)                                  (92)     (49)

NET INCOME                                               $ 459   $ 388

                                                        $ 1,185   $ 1,152

	
(1)  Includes consumer excise taxes

(2)  Shares and per share amounts for 1994 have been restated to 
reflect a two-for-one stock split in May 1994.

(3)  "Corporate and Other" includes interest expense, interest 
income on cash and marketable securities, corporate center costs, 

and real estate and insurance activities.
	


                                                      (MILLIONS OF DOLLARS)  

 SPECIAL ITEMS BY MAJOR OPERATING AREA                    First Quarter

    (unaudited)                                           1995     1994 U.S. Exploration and Production                          $ -    $ (15)

 International Exploration and Production                  (7)       -

 U.S. Refining, Marketing and Transportation              (10)     (21)

 International Refining, Marketing and Transportation      80        -

 Chemicals                                                  -        -

 Coal and Other Minerals                                    -        -

 Corporate and Other                                        -        -

   Total Special Items                                    $ 63   $ (36)

 SUMMARY OF SPECIAL ITEMS                                 First Quarter

   (unaudited)                                            1995     1994

 Environmental Remediation Provisions                     $ (10)  $ (21)

 Restructurings & Reorganizations                            (7)      -

 Other, Net                                                  80     (15)

   Total Special Items                                     $ 63   $ (36)

 FOREIGN EXCHANGE (LOSSES) GAINS                           $  -   $  - EARNINGS BY MAJOR OPERATING AREA  

  EXCLUDING SPECIAL ITEMS  

    (unaudited)                                           First Quarter

                                                            1995    1994

Exploration and Production 

 United States                                            $ 150    $ 139

 International                                              179      111

   Total Exploration and Production                         329      250

Refining, Marketing and Transportation

 United States                                              (92)     119

 International                                               76       63

   Total Refining, Marketing and Transportation             (16)     182

   Total Petroleum Operations                               313      432

Chemicals                                                   163       26

Coal and Other Minerals                                      12       15

Corporate and Other*                                        (92)     (49)

  Earnings Excluding Special Items                          396      424Special Items                                                63     (36)

    Net Income                                            $ 459    $ 388

	
 * "Corporate and Other" includes interest expense, interest income on cash and marketable securities, corporate center costs, and real estate and insurance activities.
	


                                                  (MILLIONS OF DOLLARS) CONSOLIDATED BALANCE SHEET                      March 31,  December 31,

   (unaudited)                                       1995         1994

 ASSETS:  

  Cash and Cash Equivalents                           $ 608      $ 413

  Other Current Assets                                6,640      7,178

      Total Current Assets                            7,248      7,591

  Investments and Advances                            4,252      3,991

  Properties, Plant and Equipment-Net                22,196     22,173

  Other                                                 648        652

      TOTAL ASSETS                                 $ 34,344   $ 34,407 LIABILITIES:

  Short-Term Debt                                   $ 4,205    $ 4,014

  Other Current Liabilities                           4,793      5,378

      Total Current Liabilities                       8,998      9,392

  Long-Term Debt and Capital Lease Obligations        4,080      4,128

  Deferred Income Taxes                               2,742      2,674

  Reserves For Employee Benefit Plans                 1,570      1,574

  Deferred Credits and Other Noncurrent Obligations   2,028      2,043

      TOTAL LIABILITIES                              19,418     19,811

 STOCKHOLDERS' EQUITY                                14,926     14,596

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 34,344   $ 34,407

 CONSOLIDATED STATEMENT OF CASH FLOWS                   Three Months

   (unaudited)                                         1995        1994 OPERATING ACTIVITIES 

  Net Income                                            $ 459     $ 388

  Adjustments 

    Depreciation, depletion and amortization              576       592

    Dry hole expense related to prior                       5        24

        years' expenditures

    Distributions less than equity                        (145)     (59)

        in affiliates' income

    Net before-tax losses (gains)                           15      (12)

        on asset retirements and sales

    Net currency translation losses (gains)                 31       (2)

     Net increase in operating working capital            (436)    (514)

    Deferred income tax provision                           82       65

    Other                                                  (23)      18

         Net cash provided by operating activities          564     500

 INVESTING ACTIVITIES 

  Capital expenditures                                     (732)   (669)

  Proceeds from asset sales                                 243      71

  Net sales of marketable securities                        257       1

         Net cash used for investing activities            (232)   (597)

 FINANCING ACTIVITIES 

  Net borrowings of short-term obligations                  191     319

  Proceeds from issuance of long-term debt                   17       2

  Repayments of long-term debt                              (44)   (367)

       and other financing obligations

  Cash dividends paid                                      (301)   (301)

  Purchases of treasury shares                               (2)    (2)

         Net cash used for financing activities            (139)   (349) EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS         2       3 NET CHANGE IN CASH AND CASH EQUIVALENTS                    195    (443) CASH AND CASH EQUIVALENTS AT JANUARY 1, 1995 AND 1994      413    1,644

 CASH AND CASH EQUIVALENTS AT MARCH 31, 1995 AND 1994     $ 608  $ 1,201
	


CAPITAL AND EXPLORATORY EXPENDITURES   (1)                 First Quarter

   (millions of dollars)                                  1995      1994

United States 

   Exploration and Production                            $ 163     $ 166

   Refining, Marketing and Transportation                  183       185

   Chemicals                                                17        16

   Other                                                    12        32

     Total United States                                   375       399International

   Exploration and Production                              459       482

   Refining, Marketing and Transportation                  148       167

   Chemicals                                                 4         8

   Other                                                     1         3

     Total International                                   612       660

     Worldwide                                           $ 987   $ 1,059OPERATING STATISTICS (1)  

NET LIQUIDS PRODUCTION (MB/D): 

   United States                                           356       373

   International                                           648       603

     Worldwide                                           1,004       976NET NATURAL GAS PRODUCTION (MMCF/D):

   United States                                         1,935     2,189

   International                                           592       531

     Worldwide                                           2,527     2,720SALES OF NATURAL GAS (MMCF/D):

   United States                                         2,734     2,724

   International                                           506       466

     Worldwide                                           3,240     3,190SALES OF NATURAL GAS LIQUIDS (MB/D):

   United States                                           248       210

   International                                            47        40

     Worldwide                                             295       250SALES OF REFINED PRODUCTS (MB/D):

   United States                                         1,098     1,309

   International                                           984       945

     Worldwide                                           2,082     2,254REFINERY INPUT (MB/D): 

   United States                                           909     1,153

   International                                           616       639

     Worldwide                                           1,525     1,792CHEMICALS SALES & OTHER OPERATING

 REVENUES (millions of dollars)  (2)

   United States                                         $ 873     $ 597

   International                                           152       128

     Worldwide                                         $ 1,025     $ 725

	
(1) Includes interest in affiliates.

(2) Includes sales to other Chevron companies. 1994 restated to conform with 1995 presentation.

Updated: April 1995