CHEVRON REPORTS FIRST QUARTER EARNINGS OF $1.84 BILLION, DOWN 64 PERCENT FROM FIRST QUARTER 2008
CHEVRON REPORTS FIRST QUARTER EARNINGS OF $1.84 BILLION, DOWN 64 PERCENT FROM FIRST QUARTER 2008 • Upstream earnings of $1.27 billion decline 75 percent on lower prices for crude oil and natural gas • Downstream earnings of $823 million increase from year earlier mainly on gains from asset sales SAN RAMON, Calif., May 1, 2009 – Chevron Corporation (NYSE: CVX) today reported earnings of $1.84 billion ($0.92 per share – diluted) for the first quarter 2009, compared with $5.17 billion ($2.48 per share – diluted) in the 2008 first quarter. Earnings in the 2009 period included gains of approximately $400 million ($0.20 per share) on downstream asset sales. Sales and other operating revenues in the first quarter 2009 were $35 billion, down from $65 billion in the year-ago period due mainly to lower prices for refined products and crude oil. Earnings Summary Three Months Ended March 31 Millions of Dollars 2009 2008 Earnings by Business Segment Upstream – Exploration and Production $1,269 $5,128 Downstream – Refining, Marketing and Transportation 823 252 Chemicals 39 43 All Other (294) (255) Total (1) (2) $1,837 $5,168 (1) Includes foreign currency effects (2) Net income attributable to Chevron Corporation (See Attachment 1) $(54) $(45) “Operationally, we had an excellent quarter,” said Chairman and CEO Dave O’Reilly, “with oil production and refinery inputs both higher than a year ago and operating expenses lower. However, upstream earnings declined sharply on lower prices for crude oil and natural gas. Downstream profits improved mainly on gains from asset sales, while margins on the sale of refined products recovered only slightly from a depressed level in last year’s first quarter.” O’Reilly said production increases in the first quarter included volumes from start-up of deepwater projects last year at Agbami in Nigeria and Blind Faith in the United States and from expansion activities completed last year at Tengiz in Kazakhstan. - MORE - Deepwater production start-ups in 2009 are scheduled at 58 percent-owned Tahiti in the U.S. Gulf of Mexico, 31 percent-owned Tombua-Landana in Angola and 52 percent-owned Frade in Brazil. Total maximum oil-equivalent production is estimated at 135,000 barrels per day from Tahiti by the end of 2009, while Tombua-Landana and Frade are expected to reach maximums of 100,000 barrels per day and 90,000 barrels per day, respectively, in 2011. O’Reilly said operational successes in the first quarter of this year also included a deepwater oil discovery in the U.S. Gulf of Mexico at the 55 percent-owned Buckskin prospect and completion of an exploration and appraisal program for the Wheatstone and Iago fields offshore northwest Australia. Chevron has a 100 percent interest in Wheatstone and a two-thirds interest in Iago. Resources from Wheatstone and Iago are expected to support the construction of a two-train LNG plant and domestic natural-gas plant.