SAN RAMON, Calif.--(BUSINESS WIRE)--May. 29, 2013--
Chevron Corporation (NYSE: CVX) today reported the company’s 2012
operational and social performance and future growth plans at its 2013
Annual Meeting of Stockholders.
“Chevron’s 2012 results demonstrate that we have the people, portfolio
and financial strength to deliver superior stockholder value,” said John
Watson, chairman of the board and CEO. “Our planned growth will increase
our capacity to deliver affordable energy, a cornerstone of economic
Watson discussed Chevron’s strong 2012 financial and operational
performance, with earnings exceeding $26 billion and return on capital
employed (ROCE) approaching 19 percent. In 2012, the company marked its
25th consecutive year of annual dividend payment increases,
which included last year’s annual dividend increase of 13.6 percent.
Chevron announced another quarterly dividend increase of 11.1 percent in
April 2013. Watson also said that for the fourth consecutive year,
Chevron led its peers in five-year total stockholder return.
Watson reiterated Chevron’s long-standing dedication to safe, reliable
operations, noting that Chevron was an industry leader in safety in
2012. He also reinforced the company’s commitment to learn from
operational incidents and take definitive corrective actions. Watson
also discussed the partnerships Chevron has formed to address health,
education and economic development in the communities where the company
operates. Over the past seven years, Chevron has invested more than $1
billion in projects essential to sustainable communities, and last year
the company purchased $60 billion in goods and services around the
globe, providing meaningful stimulus for local economies.
George Kirkland, Chevron vice chairman and executive vice president for
Upstream and Gas, discussed Chevron’s strong queue of projects to meet
the world’s future energy needs. Chevron plans to invest $36.7 billion
in 2013, with 90 percent of that amount expected to fund upstream
activities. The company has invested nearly $111 billion over the past
five years to develop crude oil and natural gas resources around the
Kirkland noted that Chevron Upstream had industry-leading performance in
both safety and financial performance in 2012. Earnings per barrel have
averaged almost seven dollars per barrel higher than the average of the
company’s peer group over the past three years. Cash margins also have
been the highest of its peers for three years and ROCE for the last two
years. Chevron is on track to deliver on its commitment to produce 3.3
million barrels of oil-equivalent per day by 2017, more than 98 percent
of which will come from fields that are online today or from projects
under construction or in detailed design. Over the next five years, 50
projects with a Chevron investment of more than $250 million each are
scheduled to start production, 16 of which have a net Chevron investment
exceeding $1 billion. Construction on the Gorgon liquefied natural gas
(LNG) project in Western Australia is over 60 percent complete, with
startup expected in late 2014. Start up of the Wheatstone LNG project,
also in Western Australia, is planned for 2016.
Kirkland also discussed Chevron’s Downstream and Chemicals business,
which performed very well in 2012, marked by an improvement in ROCE of
more than 10 percentage points since 2009. Chevron Downstream and
Chemicals growth projects focus on lubricants and chemicals, including
the Pascagoula, Miss., base oil plant, which is scheduled to start up
later this year and is expected to position Chevron as the world’s
largest manufacturer of premium base oil. Chevron Oronite’s Singapore
manufacturing plant, already the largest in the Asia-Pacific, is
expanding further, with additional capacity scheduled to come online in
phases in 2014 and 2016.
Stockholders voted on 13 items and supported the board’s recommendation
on each. As of May 29, 2013, the preliminary report of the Inspector of
Election was as follows:
Item 1: An average of 97 percent of the votes cast were voted for each
of the 11 nominees for election to the board of directors.
Item 2: Approximately 99 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 94 percent of the votes cast were voted to
approve, on an advisory basis, the compensation for the company’s
named executive officers.
Item 4: Approximately 91 percent of the votes cast were voted to
approve amendments to the company’s Long-Term Incentive Plan.
Item 5: Approximately 69 percent of the votes cast were voted against
the stockholder proposal regarding shale energy operations.
Item 6: Approximately 92 percent of the votes cast were voted against
the stockholder proposal regarding offshore oil wells.
Item 7: Approximately 92 percent of the votes cast were voted against
the stockholder proposal regarding climate risk.
Item 8: Approximately 75 percent of the votes cast were voted against
the stockholder proposal regarding lobbying disclosure.
Item 9: Approximately 96 percent of the votes cast were voted against
the stockholder proposal regarding the use of corporate funds for
Item 10: Approximately 73 percent of the votes cast were voted against
the stockholder proposal regarding cumulative voting.
Item 11: Approximately 67 percent of the votes cast were voted against
the stockholder proposal regarding special meetings.
Item 12: Approximately 78 percent of the votes cast were voted against
the stockholder proposal regarding an independent director with
Item 13: Approximately 78 percent of the votes cast were voted against
the stockholder proposal regarding country selection guidelines.
Final voting results will be reported on Form 8-K, which will be filed
with the 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
Chevron is one of the world's leading integrated energy companies, with
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
petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops the energy resources
of the future, including biofuels. 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 such as “anticipates,”
“expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,”
“believes,” “seeks,” “schedules,” “estimates,” “budgets,” “outlook”, “on
track” 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; 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
equity affiliates; 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
production or manufacturing facilities or delivery/transportation
networks due to war, accidents, political events, civil unrest, severe
weather or crude oil production quotas that might be imposed by the
Organization of Petroleum Exporting Countries; the potential liability
for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or
product changes required by existing or future environmental statutes,
regulations and litigation; the potential liability resulting from other
pending or future litigation; the company’s future acquisition or
disposition of assets and 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; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies; and
the factors set forth under the heading “Risk Factors” on pages 28
through 30 of the company’s 2012 Annual Report on Form 10-K. In
addition, such results could be affected by general domestic and
international economic and political conditions. Other unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.
Source: Chevron Corporation
Morgan Crinklaw, 925-790-6908