Chevron Reports Strong Performance at Annual Stockholders Meeting
SAN RAMON, Calif., May 30, 2018 – Chevron Corporation (NYSE: CVX) today provided an overview of the company’s 2017 operational performance and expressed confidence in its prospects at its 2018 Annual Meeting of Stockholders at its corporate headquarters in San Ramon, California.
“Chevron has emerged from the changes that have reshaped the world’s energy landscape as a stronger, leaner and more agile enterprise,” said Michael Wirth, Chevron’s Chairman and CEO. “Last month, we reported earnings of $3.6 billion for the first quarter, marking our best quarter in three and a half years. During the same period, we achieved an all-time quarterly production record for the company. Today, we stand ready to win in any environment.”
A key corporate objective for Chevron in 2017 was to be cash balanced, generating sufficient cash flow to cover all cash needs, even in an environment of lower commodity prices. In 2017, reported after tax income was $9.2 billion and full-year cash flow from operations was $20.5 billion. In 2017, Chevron was cash balanced, without relying on proceeds from asset sales, surpassing one of the company’s primary corporate goals for the year.
“Chevron’s first financial priority is maintaining and growing the dividend,” Wirth added. “In January, we announced a four percent dividend increase, putting us on track to make 2018 the 31st consecutive year of increased annual per-share dividend payout. Global demand for our products continues to grow, and Chevron has many advantages as it competes in the ever-evolving market for energy.”
Stockholders voted on 10 items. As reported during the meeting, the preliminary report of the Inspector of Elections was as follows:
- Item 1: An average of 98 percent of the votes cast were voted for the 10 nominees for election to the board of directors.
- Item 2: Approximately 97 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 93 percent of the votes cast were voted to approve, on an advisory basis, the compensation of the company’s named executive officers.
- Item 4: Approximately 68 percent of the votes cast were voted against the stockholder proposal regarding a report on lobbying.
- Item 5: Approximately 93 percent of the votes cast were voted against the stockholder proposal regarding a report on business with conflict-complicit governments.
- Item 6: Approximately 92 percent of the votes cast were voted against the stockholder proposal regarding a report on transition to a low carbon business model.
- Item 7: Approximately 55 percent of the votes cast were voted against the stockholder proposal regarding a report on methane emissions.
- Item 8: Approximately 76 percent of the votes cast were voted against the stockholder proposal to require an independent chairman.
- Item 9: Approximately 74 percent of the votes cast were voted against the stockholder proposal to recommend an independent director with environmental expertise.
- Item 10: Approximately 66 percent of the votes cast were voted against the stockholder proposal to set the special 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 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,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities,” 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 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 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 the company’s 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 or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for 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 impact of the 2017 U.S. tax legislation on the company’s future results; 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 19 through 22 of the company’s 2017 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 2018