press release

ChevronTexaco Reports Fourth Quarter Net Income of $3.4 Billion and Record $13.3 Billion for Year

  • Upstream quarterly earnings of $2.2 billion benefit from higher oil and gas prices, gains on nonstrategic asset sales
  • Downstream earnings of $1.1 billion in quarter reflect increased industry demand and improved margins for refined products
  • Milestones reached during period in oil and gas exploration, start-up of production facilities and other areas of strategic focus

SAN RAMON, Calif., Jan. 28, 2005 -- ChevronTexaco Corp. today reported net income of $3.4 billion ($1.63 per share – diluted) in the fourth quarter 2004, closing out the strongest year in the company's 125-year history. Net income in the fourth quarter 2003 was $1.7 billion ($0.82 per share – diluted).

The 2004 quarter included special-item gains of $146 million, compared with $89 million a year ago. Foreign currency effects reduced earnings $54 million and $171 million in the corresponding periods.

For the full year, net income was $13.3 billion ($6.28 per share – diluted), compared with $7.2 billion ($3.48 per share – diluted) in 2003. Net income for 2004 included $1.2 billion of net special-item gains, primarily from the disposition of producing properties. Earnings for 2003 included net special charges of $53 million.

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This press release of ChevronTexaco Corporation contains forward-looking statements relating to ChevronTexaco's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" 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, some of which are beyond our 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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this earnings 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.

Among the factors that could cause actual results to differ materially are crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential delays in the development, construction or start-up of planned projects; potential disruption or interruption of the company's net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental laws or regulations; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); potential liability resulting from pending or future litigation; the company's ability to sell or dispose of assets or operations as expected; and the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

Updated: January 2005