press release

ChevronTexaco Announces Sale of Canadian Midstream Company

SAN RAMON, Calif., May 19, 2004 -- ChevronTexaco Corp. today announced that its wholly owned subsidiary Chevron Canada Resources (CCR) has reached an agreement to sell its EnerPro Midstream Co. to KeySpan Facilities Income Fund for approximately $190 million plus certain working capital adjustments. The company expects to record a gain to income upon close of the sale, which is anticipated to occur during the third quarter of this year.

EnerPro owns and operates natural gas and oil facilities located throughout Alberta, Canada, as well as natural gas liquids fractionation facilities located at Fort Saskatchewan, Alberta. The transaction is part of plans announced last December by ChevronTexaco to improve the competitive performance and operating efficiency of its North America exploration and production portfolio.

"Our ongoing portfolio rationalization effort will make us more efficient and improve our competitive position," said ChevronTexaco Vice Chairman Peter Robertson. "Our goal is to maximize the value of our base business," he added. "By divesting nonstrategic assets, we can apply a more intense focus on those parts of our portfolio that we believe will deliver the most value to our stockholders."

The portfolio optimization program does not affect strategically significant Canadian assets, which include: the Athabasca Oil Sands Project; Mackenzie Delta gas; Canadian east coast exploration, development and production activities; or the company's refining and marketing operations.

Currently celebrating its 125th anniversary, ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 50,000 ChevronTexaco employees work in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif. More information on EnerPro is available at

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the sale of EnerPro Midstream Co. and North America crude oil and natural gas asset portfolio optimization strategy. The statements are based upon management's current expectations, estimates, and projections; 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. Among the factors that could cause actual results to differ materially include the ability of the company to divest non-strategic assets and realign business units according to plan, failure of the sale of EnerPro Midstream Co. to close according to expectations, and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: May 2004