press release

Chevron Press Release - Chevron Reports Net Income Of $2.070 Billion For 1999

SAN FRANCISCO, Jan. 25, 2000 -- Chevron Corp. today reported 1999 preliminary net income of $2.070 billion ($3.14 per share - diluted), up 55 percent from 1998 net income of $1.339 billion ($2.04 per share - diluted). Net income for 1999 included net charges of $216 million from special items, compared with net charges of $606 million in 1998. Earnings before special items for 1999 were $2.286 billion ($3.47 per share - diluted), up 18 percent from $1.945 billion ($2.96 per share - diluted) in 1998.

Earnings Summary Fourth Quarter Year
Millions of Dollars

1999

1998

1999

1998

Operating Earnings
Special Items
$819
(10)
$503
(709)
$2,286
(216)

$1,945
(606)

Net Income
$809 $(206) $2,070 $1,339

For the fourth quarter 1999, Chevron reported net income of $809 million ($1.23 per share - diluted), compared with a fourth quarter 1998 net loss of $206 million ($0.31 per share - diluted). Excluding special items, fourth quarter 1999 earnings of $819 million ($1.24 per share - diluted) increased 63 percent over $503 million ($0.76 per share - diluted) in fourth quarter 1998. The 1998 fourth quarter included a loss provision for the 1982 lawsuit against Gulf Oil by Cities Service, arising from events prior to the time of the Chevron-Gulf merger.

Foreign exchange losses included in 1999 net income were $38 million, compared with losses of $47 million in 1998. For the fourth quarter of 1999, foreign exchange gains were $10 million, compared with losses of $71 million in the 1998 fourth quarter.

Chairman and CEO Dave O'Reilly said, "Earnings for the fourth quarter and full year 1999 benefited from a rebound in crude oil prices that began last spring. Earnings were given a further boost by higher crude oil and natural gas production and lower unit operating expenses -- a result of the company's cost savings effort. Our initiatives to eliminate $500 million from our cost structure on a sustained basis have proven to be very successful.

"The higher crude oil and natural gas prices increased 1999 operational earnings in our exploration and production business by 80 percent," O'Reilly commented. "Average U.S. crude oil sales realizations for the year rose 41 percent, while our U.S. natural gas realizations rose 7 percent. Earnings were further bolstered by a 2 percent increase in oil and gas production worldwide, partly the result of our commitment to continue investment during the period of low oil prices in 1998 and the first half of 1999." O'Reilly also said the company added oil and gas reserves during the year that totaled approximately 105 percent of 1999 production -- the seventh consecutive year that Chevron has added more than 100 percent of the year's production in reserves.

O'Reilly continued, "In contrast to our producing operations, which benefited from higher oil and gas prices, worldwide refining and marketing businesses suffered from compressed margins, as higher raw material costs outpaced increases in refined products sales realizations. Downstream earnings in the United States were also lower because of operating problems at one of our West Coast refineries."

Expanding on his comments related to the company's successful cost-savings initiatives, O'Reilly said, "We significantly restructured our North American upstream and downstream companies, as well as our chemicals, pipeline and research businesses. We also reorganized our human resources and finance staffs, increased standardization of our information technology systems and made improvements in our procurement activities. In addition, we completed the sale of office real estate in the San Francisco Bay Area, Southern California and Houston, and also sold non-core U.S. upstream properties." The company also reported that by mid-2000, cost-savings initiatives undertaken during 1999 were expected to result in corporate-wide staff reductions of approximately 3,500 employees.

O'Reilly added, "With the aid of strong second-half earnings, we ended the year on a high note. The company has a wealth of investment opportunities. We stayed the course and maintained a robust capital-spending program last year, while many others were cutting back. That decision gives us a distinct advantage today with the rebound in oil and gas prices. We have in place for 2000 a company structure and capital spending program that position us well for the improved industry environment we are experiencing."

O'Reilly highlighted a number of significant 1999 and early 2000 operating and strategic events for the company, including:

  • Upstream Acquisitions. Chevron made two acquisitions that will help sustain the company's growth in international exploration and production. The September acquisition of Petrolera Argentina San Jorge S. A., coupled with the recent award of rights to partner with Petrobras in a 50/50 exploration venture in two promising deepwater blocks offshore Brazil, were significant steps in our Latin America growth strategy. The March purchase of Rutherford-Moran Oil Corp. and the assumption of the operatorship of Block B8/32 provided an entry into the natural gas market in Southeast Asia. The company began new production from the Benchamas Field offshore Thailand and announced new discoveries in prospects from both of these acquisitions.
  • Angola. In December, oil production started at the Chevron-operated, 31 percent-owned Kuito Field, Angola's first deep-water production from Block 14. After the recent successful completion of appraisal wells in the Benguela and Belize Fields in Block 14, options for the joint development of these areas are under study. The company also began production from the Banzala Field, in the Block 0 concession adjacent to Block 14. These developments help move Chevron closer to meeting its objective of boosting production from its Angolan operations to 600,000 barrels per day by 2001.
  • Nigeria. The company is taking an active role to eliminate flaring of natural gas from production facilities in Nigeria, mitigating the adverse environmental effects of the flaring and monetizing the extracted resource. Chevron was named Managing Sponsor of the West African Gas Pipeline, a joint venture among six energy companies to develop a 600-mile offshore pipeline that runs from gas producing and processing facilities in Nigeria to Ghana via Benin and Togo. Also, an agreement was signed with Sasol to create a new global joint venture for gas-to-liquids (GTL) technology. Preliminary design and engineering continue for a GTL facility in Nigeria that will be capable of converting natural gas into synthetic liquid fuels for further processing into commercial products.
  • Deepwater Gulf of Mexico. [these numbers were revised in a press release dated 1/28/2000] Chevron began producing from its first two deepwater projects in the Gulf of Mexico -- Genesis and Gemini. Gross oil-equivalent production from Genesis, operated and 57 percent-owned by Chevron, reached 63,000 barrels per day by year-end. Gross oil-equivalent production from the 40 percent-owned Gemini project reached 35,000 barrels per day. Evaluation of options is under way to develop a third Gulf of Mexico deepwater project, Typhoon. Chevron is the operator and 50 percent owner of Typhoon.
  • Caspian Sea Region. Gross liquids production from the Tengiz Field, 45 percent-owned by Chevron, averaged 214,000 barrels per day in 1999, an increase of 14 percent over 1998 average production. While expanding Tengiz production, employees of Tengizchevroil recently surpassed 6.2 million man-hours without a lost-time injury, a world-class accomplishment. Construction of a pipeline by the Caspian Pipeline Consortium(CPC) continues on schedule. The pipeline will deliver crude oil from the Tengiz Field in Kazakhstan to the Black Sea port of Novorossiysk and is scheduled for start-up in mid-2001. During 1999, CPC shareholders approved a $1.3 billion budget and work plan for 2000 and awarded the contract for construction of new and refurbishment of existing Russian pump stations.
  • Canada. During 1999, a significant natural gas discovery (K-29) was made 16 miles northwest of Fort Liard, Northwest Territories, Canada. Plans are being developed for the construction of production and transportation facilities and additional wells to permit first production by May 2000. A second successful well (M-25) was completed in January 2000 and is expected to begin producing in the fourth quarter 2000. Chevron is the operator and has a 43 percent interest in both discoveries. In Alberta, Canada, Chevron acquired a 20 percent interest in the Athabasca Oil Sands project. Completion of construction and start-up of the project is planned for late 2002 and represents along-term earnings growth opportunity with expected gross production of 155,000 barrels per day.
  • Dynegy. Chevron's 28 percent-owned affiliate, Dynegy Inc., announced an agreement to merge with Illinova Corp., an energy services holding company in Illinois. Chevron will increase its investment to maintain a comparable percentage ownership in the merged company. The merger is expected to be completed soon and will accelerate Dynegy's growth in the power generation and marketing business.

Total revenues in 1999 were $36.6 billion, up 20 percent from $30.6 billion in 1998. Fourth quarter revenues of $11.0 billion were 51 percent higher than 1998 fourth quarter revenues of $7.3 billion. Revenues for the year increased primarily on sharply higher crude oil and refined product prices, as well as higher natural gas prices.


Exploration and Production

U.S. Exploration and Production Fourth Quarter Year
Millions of Dollars

1999

1998

1999 1998
Earnings, excluding special items
Special Items
$343
(195)
$106
(34)
$818
(292)
$381
(16)
Net Income
$148 $72 $526 $365

U.S. exploration and production earnings rose for the year and fourth quarter on higher crude oil and natural gas sales realizations. Annual 1999 earnings also benefited from lower operating expenses.

For 1999, the company's average crude oil realizations of $16.11 per barrel were up 41 percent from the prior year. In the fourth quarter, the average realizations were $21.64,more than double the realizations of the 1998 quarter. Average natural gas realizations increased 7 percent for the year to $2.16 per thousand cubic feet and 25 percent to $2.49 per thousand cubic feet for the quarter.

Net liquids production for the year averaged 316,000 barrels per day, down 3 percent from 325,000 barrels per day in 1998. Fourth quarter 1999 production averaged 324,000 barrels per day, up 6 percent compared with the prior-year fourth quarter. Net natural gas production in 1999 averaged 1.639 billion cubic feet per day, down 6 percent from 1998.For the 1999 fourth quarter, natural gas production averaged 1.577 billion cubic feet per day, down from 1.661 billion in the year-earlier quarter. Overall, 1999 U.S.oil-equivalent production declined, reflecting normal field declines and asset sales,partially offset by new Gulf of Mexico production. Production in the 1998 periods was adversely affected by a number of storms in the Gulf of Mexico, including Hurricane Georges.

Special items in the fourth quarter and the full year 1999 primarily included charges for impairment of properties in the Gulf of Mexico, environmental remediation and net costs associated with the company's restructuring program. Special items in earlier 1999 quarters included costs associated with a regulatory issue.

International Exploration and Production Fourth Quarter Year
Millions of Dollars

1999

1998

1999

1998
Earnings, excluding special items
Special Items
$497
(63)
$209
(7)
$1,156
(63)
$717
(10)
Net Income
$434 $202 $1,093 $707

International exploration and production annual and quarterly earnings increased in 1999, mainly the result of higher crude oil and natural gas prices.

For the full year, net liquids production increased 4 percent to 811,000 barrels per day. Production increases in Angola and Kazakhstan, combined with production from properties acquired during 1999 in Argentina and Thailand, offset declines in Australia, Indonesia and Nigeria. Fourth quarter 1999 liquids production was 847,000 barrels per day, about the same as the 1998 quarter. However, production in the quarter would have risen were it not for the effect of a cost recovery mechanism in Indonesia that provides for the production operator to recover investment and operating costs with equivalent barrels of oil. As a result of higher oil prices, significantly fewer barrels were required in 1999 to recover costs than for the prior-year.

Net natural gas production increased 34 percent for the year to 874 million cubic feet per day in 1999 and 16 percent to 896 million cubic feet per day in the 1999 fourth quarter. Increases in net natural gas production for the year and quarter resulted from higher production in the United Kingdom, as well as new production from the properties acquired in Thailand and Argentina.

For the tenth consecutive year, net production and proved reserves increased, reflecting the company's success in growing its international upstream operations. In 1999, the company estimated it replaced 169 percent of its international oil and gas production through additions to proved reserves. Significant reserve additions included approximately 230 million barrels in Kazakhstan and 85 million barrels in Nigeria. Further production increases are expected in 2000 as new developments come on-stream in West Africa,expansion of Tengiz continues and the company realizes production for a full year from the acquired properties in Thailand and Argentina.

Special items in the 1999 fourth quarter net income included charges for asset write-downs and unfavorable prior-year tax adjustments. For the year, net income also included a special charge for the net cost of the company's restructuring program, offset by a gain from the sale of seismic data in Canada.

Earnings for 1999 included net foreign currency losses of $20 million, compared with gains of $29 million in 1998. Earnings for the fourth quarter 1999 included foreign currency gains of $11 million, compared with losses of $2 million for the 1998 period. The annual change reflected currency rate swings of the U.S. dollar relative to Australian and Canadian dollars, partially offset by a favorable effect from a Nigerian naira-basedobligation.


Refining, Marketing and Transportation

U.S. Refining, Marketing and Transportation Fourth Quarter Year
Millions of Dollars

1999

1998

1999 1998
Earnings, excluding special items
Special Items
$73
(4)
$162
(48)
$375
(18)
$633
(61)
Net Income
$69 $114 $357 $572

Annual and quarterly earnings for U.S. refining, marketing and transportation in 1999 declined significantly. Lower refined product sales margins and adverse effects on earnings from incidents at U.S. refineries were partially offset by increases in refined products sales volumes and the receipt of proceeds from business interruption insurance.

Refined product sales volumes increased by 5 percent to 1,302,000 barrels per day in 1999;fourth quarter 1999 sales volumes increased 7 percent over the corresponding 1998 period to 1,294,000 barrels per day. The sales increases in 1999 included higher branded gasoline sales, which were up 3 percent and 5 percent for the quarter and full year, respectively.

For 1999, U.S. refined product sales realizations increased 20 percent to $26.86 perbarrel. Fourth quarter realizations were up 47 percent compared with the 1998 quarter to$31.14 per barrel. Sales margins declined, however, as material costs increased about 40percent and 85 percent for 1999 and the fourth quarter, respectively.

Fourth quarter 1999 net income included special charges arising from provisions for environmental remediation and the company's restructuring program, largely offset by aLIFO inventory gain. Special items for 1999 also included a gain from the sale of the company's interest in a pipeline and charges for restructuring and environmental remediation recorded earlier in the year.

International Refining, Marketing and Transportation Fourth Quarter Year
Millions of Dollars

1999

1998

1999 1998
(Losses) Earnings, excluding special items
Special Items
$(79)
26
$(91)
(27)
$49
25
$123
(61)
Net (Loss) Income
$(53) $(118) $74 $28

International refining, marketing and transportation operating earnings for the year --composed mainly of Chevron's interest in Caltex Corporation, its Canadian downstream company and international shipping operations -- decreased as a result of lower margins. Fourth quarter 1999 losses declined, compared with the corresponding 1998 period. Results included foreign currency losses of $21 million and $6 million for the year and fourth quarter 1999, respectively. The comparable 1998 periods included foreign currency losses of $69 million and $71 million, respectively.

Earnings in the fourth quarter 1999 included a special item for a LIFO inventory gain,mostly for Caltex operations. For the year 1999, earnings also included special charges for a loss on the sale of Caltex's investment in a Japanese refiner and the costs of restructurings, including staff reduction programs, essentially offset by a favorable Caltex prior-year tax adjustment.

Chevron's international shipping operations results declined as a result of lower freight rates, reflecting weaker demand for tonnage, and higher fuel costs. The company's Canadian refining and marketing operations suffered from weak margins, as competitive price restraints prevented recovery of increases in material costs.

Caltex net income included the effects of special items, foreign currency losses, and lower-of-cost-or-market (LCM) inventory adjustments, as shown below.

  Fourth Quarter Year
Millions of Dollars 1999 1998 1999 1998
Net (Loss) Income
Less:
(41)
(114)
56
(36)
   Special Items 26 (14) 30 (82)
   Foreign currency loss (4) (67) (15) (68)
   lCM Inventory  adjustments - (41) 76 (43)
Adjusted (Loss) Earnings $(63) $8 $(35) $157

After adjustments, Caltex incurred a loss of $35 million in 1999, a substantial decline relative to 1998 on an adjusted basis. In the fourth quarter 1999, adjusted losses were$63 million, compared with adjusted earnings of $8 million in the 1998 quarter. Results for Caltex declined due to weak sales margins in most of its areas of operations, as competitive pressures prevented refined product sales realizations from rising sufficiently to recover higher crude costs.

For international downstream in total, refined product sales volumes for the year increased to 902,000 barrels per day, compared with 798,000 barrels per day in 1998. For the fourth quarter 1999, sales volumes increased by 18 percent to 915,000 barrels per day compared with the same period in 1998. Sales volumes, including trading sales, in 1999 from Caltex operations increased 13 percent to 691,000 barrels per day and increased by 11 percent in the fourth quarter 1999 to 722,000 barrels per day, compared with prior-year periods.


Chemicals

Chemicals Fourth Quarter Year
Millions of Dollars

1999

1998

1999 1998
Earnings, excluding special items
Special Items
$73
(5)
$22
(24)
$205
$(96)
151
(29)
Net Income (Loss) $68 $(2) $109 $122

Earnings, excluding special items for the year and fourth quarter 1999, rose compared with 1998 on improved sales margins for major products and higher sales volumes. Additionally, the results in 1998 were more adversely affected by plant shutdowns than 1999.

Fourth quarter 1999 net income included special charges for the company's restructuring program and a LIFO inventory loss. Special items for the year also included charges forasset write-downs and environmental remediation provisions.


All Other

Coal Operations Fourth Quarter Year
($ Millions)

1999

1998

1999 1998
Earnings, excluding special items
Special Items
$5
-
$39
-
$34
26
$77
-
Net Income $5 $39 $60 $77

Earnings, excluding special items, for the company's coal operations declined $43 million and $34 million for the year and fourth quarter, respectively. These reductions were mainly the result of an absence of earnings for most of 1999 from an affiliate that was sold in the first quarter; lower sales tonnage and sales prices for the remaining coal business; and adjustments during the year to the carrying value of these remaining operations that were under active negotiation for sale. In the 1999 fourth quarter, as a result of unsuccessful negotiations to sell the company's coal operations, final adjustments were made to reduce the net carrying value of the assets, which are no longer held for sale. Fourth quarter 1998 earnings, in contrast, benefited from the suspension of depreciation expense while the held-for-sale assets were actively being marketed to prospective buyers.

Special items for 1999 included a gain from the sale of an interest in an affiliate,partially offset by charges for asset write-downs.

Corporate and Other Items Fourth Quarter Year
Millions of Dollars

1999

1998

1999

1998

(Charges) Earnings, excluding special items
Special Items
$(93)
231
$56
(569)
$(351)
202
$(137)
(395)
Net Income (Charges) $138 $(513) $(149) $(532)

Corporate and other net charges, excluding special items, increased by $214 million for 1999 and $149 million in the 1999 fourth quarter, compared with the 1998 periods. For the year, higher interest expense, lower interest income and less favorable corporate state and federal income tax adjustments were the primary causes of the increase. In the quarter, these same factors -- offset partially by the reversal of the reserve recorded in the first three quarters of 1999 for interest on for the Cities Service litigation -- led to higher net charges.

Special items for the fourth quarter 1999 included a favorable adjustment to the reserve recorded in 1998 for the Cities Service case, gains associated with the sale of real estate and marketable securities, and favorable prior-year tax adjustments. These were partially offset by special charges for restructuring costs and other items. Fourth quarter 1998 special charges included the major reserve for the Cities Service litigation,offset partially by favorable prior-year tax adjustments. Special items for the full year included additional restructuring charges recorded earlier in the year, while 1998 included additional favorable prior-year tax adjustments and proceeds from insurance settlements related to environmental cost recovery claims.

Capital and Exploratory Expenditures

Capital and exploratory expenditures, including the company's share of affiliates' expenditures, were $6.112 billion for the year 1999, compared with $5.314 billion spent in 1998. Fourth quarter expenditures were $1.331 billion and $1.499 billion in 1999 and 1998,respectively. Expenditures for worldwide exploration and production activities for the year represented 75 percent of the company's annual expenditures, and included the acquisitions of Rutherford-Moran Oil Corp. and Petrolera Argentina San Jorge S.A.

The company recently announced its 2000 capital and exploratory budget of $5.2 billion. Approximately $3.6 billion of this funding will relate to exploration and production project, with about $2.3 billion earmarked for international upstream areas.


Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of1995.

Some of the items discussed in this earnings release are forward-looking statements relating to Chevron's operations that are based on management's current expectations,estimates and projections about the petroleum, chemical and other industries, in which the company operates. The statements included in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. These include potential changes in crude oil, natural gas and other commodity prices and potential delays or other changes in work and repairs schedule. Actual results could differ materially from management's estimates.


 

CHEVRON CORPORATION - FINANCIAL REVIEW
(Millions of Dollars, Except Per-Share Amounts)

-1-

 
   
                                       
CONSOLIDATED STATEMENT OF INCOME - (UNAUDITED)

Three Months Ended
December 31,
  Year Ended
December 31,
1999     1998   1999     1998  
Sales and Other Operating Revenues (1) $ 10,611   $ 7,164 $ 35,448   $ 29,943  
Income from Equity Affiliates 122     (66)   526     228  
Other Income 246     184   612     386  
Total Revenues     10,979     7,282   36,586     30,557  
COSTS AND OTHER DEDUCTIONS
Purchased Crude Oil and Products 5,588     3,358   17,982     14,036  
Operating Expenses 1,369     1,160   5,090     4,834  
Selling, General and Administrative Expenses 201     1,343   1,404     2,239  
Exploration Expenses   149     117   538     478  
Depreciation, Depletion and Amortization 900     646   2,866     2,320  
Taxes Other Than on Income (1) 1,184     1,115   4,586     4,411  
Interest and Debt Expense 138     109   472     405  
Total Costs and Other Deductions 9,529     7,848   32,938     28,723  
Income Before Income Tax Expense 1,450     (566)   3,648     1,834  
Income Tax Expense 641     (360)   1,578     495  
NET INCOME   $ 809   $ (206) $ 2,070   $ 1,339  
 
PER-SHARE AMOUNTS                    
  Earnings - Basic   $ 1.24   $ (.31) $ 3.16   $ 2.05  
  Earnings - Diluted   $ 1.23   $ (.31) $ 3.14   $ 2.04  
  Dividends   $ .65   $ .61 $ 2.48   $ 2.44  
 
Average Common Shares Outstanding (000')
  - Basic         657,334     654,076   656,537     654,858  
  - Diluted         659,618     656,237   659,457     657,076  
 
NET INCOME BY MAJOR OPERATING AREA - (UNAUDITED)

            Three Months Ended
December 31,
  Year Ended
December 31,
1999     1998   1999     1998  
Exploration and Production
United States           $ 148   $ 72 $ 526   $ 365  
International               434     202   1,093     707  
Total Exploration and Production 582     274   1,619     1,072  
Refining, Marketing and Transportation                    
United States               69     114   357     572  
International             (53)     (118)   74     28  
Total Refining, Marketing and Transportation 16     (4)   431     600  
Chemicals         68     (2)   109     122  
All Other (2)         143     (474)   (89)     (455)  
NET INCOME     $ 809   $ (206) $ 2,070   $ 1,339  
 
(1) Includes consumer excise taxes   $ 989   $ 943 $ 3,910   $ 3,756  
(2) Includes coal operations, interest expense, interest income on cash and marketable securities, corporate center costs, and real estateand insurance activities.

 

CHEVRON CORPORATION - FINANCIAL REVIEW
(Millions of Dollars)
-2-  
   
SPECIAL ITEMS BY MAJOR OPERATING AREA - (UNAUDITED)
 

Three Months Ended
December 31,

   

Year Ended
December 31,

 
            1999     1998     1999     1998  
U. S. Exploration and Production       $ (195)   $ (34)   $ (292)   $ (16)  
International Exploration and Production       (63)     (7)     (63)     (10)  
U. S. Refining, Marketing and Transportation     (4)     (48)     (18)     (61)  
International Refining, Marketing and Transportation 26     (27)     25     (95)  
Chemicals               (5)     (24)     (96)     (29)  
All Other (1)               231     (569)     228     (395)  
Total Special Items           $ (10)   $ (709)   $ (216)   $ (606)  
 
SUMMARY OF SPECIAL ITEMS - (UNAUDITED) Three Months Ended
December 31,
    Year Ended
December 31,
 
            1999     1998     1999     1998  
 
Asset Dispositions             $ 90   $ 29   $ 211   $ (9)  
Asset Write-offs and Revaluations         (224)     (91)     (346)     (159)  
Environmental Remediation Provisions       (27)     (21)     (123)     (39)  
Prior-Year Tax Adjustments           49     81     109     271  
Restructurings and Reorganizations         (37)     -     (183)     (43)  
LIFO Inventory Adjustments           38     (25)     38     (25)  
Cities Service Settlement           104     (629)     104     (629)  
Other, Net               (3)     (53)     (26)     27  
Total Special Items           $ (10)   $ (709)   $ (216)   $ (606)  
 
FOREIGN EXCHANGE GAINS (LOSSES) $ 10   $ (71)   $ (38)   $ (47)  
 
EARNINGS BY MAJOR OPERATING AREA, EXCLUDING SPECIAL ITEMS - (UNAUDITED) Three Months Ended
December 31,
    Year Ended
December 31,
 
            1999     1998     1999     1998  
Exploration and Production
  United States             $ 343   $ 106   $ 818   $ 381  
  International               497     209     1,156     717  
  Total Exploration and Production  

840

   

315

   

1,974

   

1,098

 
Refining, Marketing and Transportation                            
  United States              

73

   

162

   

375

   

633

 
  International              

(79)

   

(91)

   

49

   

123

 
  Total Refining, Marketing and Transportation  

(6)

   

71

   

424

   

756

 
Chemicals              

73

   

22

   

205

   

151

 
All Other (1)              

(88)

   

95

   

(317)

   

(60)

 
  Earnings Excluding Special Items      

819

   

503

   

2,286

   

1,945

 
                                       
Special Items              

(10)

   

(709)

   

(216)

   

(606)

 
  Net Income             $

809

  $

(206)

  $

2,070

  $

1,339

 
                                       
(1) Includes coal operations, interest expense, interest income on cash and marketable securities, corporate center costs, and real estate and insurance activities.

CHEVRON CORPORATION - FINANCIAL REVIEW    

-3-

                             
CAPITAL AND EXPLORATORY EXPENDITURES (1)
(Millions of Dollars)
       
    Three Months Ended
December 31,
    Year Ended
December 31,
          1999     1998     1999     1998
United States
Exploration and Production   $ 210   $ 336   $ 1,008   $ 1,320
Refining, Marketing and Transportation   216     179     522     654
Chemicals         82     115     326     385
Other         53     56     117     223
Total United States         561     686     1,973     2,582
 
International
Exploration and Production 567     545     3,591     1,942
Refining, Marketing and Transportation 171     205     412     431
Chemicals         32     63     136     359
Total International       770     813     4,139     2,732
Worldwide       $ 1,331   $ 1,499   $ 6,112   $ 5,314
 
OPERATING STATISTICS (1)
NET LIQUIDS PRODUCTION (MB/D):
United States         324     306     316     325
International         847     849     811     782
      Worldwide        

1,171

   

1,155

   

1,127

   

1,107

                             
NET NATURAL GAS PRODUCTION (MMCF/D):                  
   United States        

1,577

   

1,661

   

1,639

   

1,739

   International        

896

   

774

   

874

   

654

      Worldwide        

2,473

   

2,435

   

2,513

   

2,393

                             
SALES OF NATURAL GAS (MMCF/D):                    
   United States        

2,591

   

3,150

   

3,162

   

3,303

   International        

1,630

   

1,699

   

1,774

   

1,504

      Worldwide        

4,221

   

4,849

   

4,936

   

4,807

                             
SALES OF NATURAL GAS LIQUIDS (MB/D):                  
   United States        

149

   

138

   

133

   

130

   International        

60

   

42

   

57

   

53

      Worldwide        

209

   

180

   

190

   

183

                             
SALES OF REFINED PRODUCTS (MB/D):                  
   United States        

1,294

   

1,212

   

1,302

   

1,243

   International        

915

   

777

   

902

   

798

      Worldwide        

2,209

   

1,989

   

2,204

   

2,041

                             
REFINERY INPUT (MB/D):                    
   United States        

929

   

697

   

955

   

869

   International        

443

   

472

   

433

   

475

      Worldwide        

1,372

   

1,169

   

1,388

   

1,344

                             
CHEMICALS SALES & OTHER OPERATING                  
REVENUES (millions of dollars) (2)                        
   United States       $

838

  $

603

  $

2,958

  $

2,591

   International        

217

   

190

   

779

   

625

      Worldwide       $

1,055

  $

793

  $

3,737

  $

3,216

(1) Includes interest in affiliates.                          
(2) Includes sales to other Chevron companies.                        

 

 

Updated: January 2000