Downstream. Mike Wirth Executive Vice President Chevron Corporation

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1 Downstream Mike Wirth Executive Vice President

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3 Strategy Focused on Improving Returns Improve returns and grow earnings across the value chain Operational Excellence Focused refining and marketing portfolio Asset scale, flexibility, complexity Targeted growth 3

4 Shifting Global Fundamentals 2010 Capacity Fuels Primary Petrochemicals 2010 Capacity 2010 Capacity Premium Base Oils 77 MMBD 91 MMBD 261 MMTPA 368 MMTPA 209 MBD 382 MBD Demand Modest growth and surplus capacity Demand Demand Petrochemicals and lubricants are growth segments Source: Purvin & Gertz, Nexant ChemSystems, Kline & Company 4

5 Fuels Demand Outlook Plays to Our Strength Growth By Region Growth By Product 18 % growth 18 % growth Europe / FSU Africa / ME Americas Asia Asia is the primary engine of growth Gasoline LPG/Naphtha Distillate Distillate growth continues globally Source: Purvin & Gertz 5

6 Advantaged Fuels Footprint 72 % of Chevron Refining Equivalent Distillation Capacity Equivalent Distillation Capacity Million Barrels Per Day Pacific Rim Rest of World Chevron Refineries 10 0 Source: Oil & Gas Journal, Company Data 6

7 Petrochemicals and Lubricants Demand Growth Growth Petrochemicals Growth Premium Base Oils 41 % growth 83 % growth Europe / FSU Americas Africa / ME Asia Africa / ME Europe / FSU Americas Asia Source: Nexant ChemSystems, Kline & Company 7

8 Downstream Themes Strategy Performance Growth 8

9 We Deliver Results Return on Capital Employed 3-Year R&M Commitment 7 % Improvement Target 2011 Actual 8 % Improvement Captured Portfolio and Costs Marketing Refining? Market Excludes Chemicals, non-recurring items 9

10 Continuing Refining Improvements Improvements ($MM B/T) vs Baseline $ 700 MM Target Target 2011 Actual 2012 Plan OPEX savings $ 850 MM Captured $ 1B New Plan Margin improvement Feedstock and product flexibility Greater turnaround and maintenance efficiency Reduced catalyst and chemicals costs Improved energy efficiency 10

11 Sustained Top-Tier Reliability Solomon Utilization Chevron vs. International Majors 85% 80% 75% Sustaining high-level of performance Deploying turnaround improvement initiatives CVX Ranking Relative to Competitors 1 being the best Competitor Range (Majors tracked by Solomon) Source: Solomon Associates, Company Data 11

12 Superior Energy Efficiency and Cash Margin Energy Intensity Index Net Cash Margin Indexed to 2000 Average 115 Better 300 Better CVX Ranking Relative to Competitors 1 being the best Competitor Range (Majors tracked by Solomon) Source: Solomon Associates, Company Data 12

13 2011 Portfolio Actions Country Exits 27 Asset Divestments Pembroke Refinery UK, Ireland Marketing 13 Terminals Cash (B/T) $ 8B Exit locations 13

14 Portfolio Rationalization Continues Signed Spain Caribbean Perth Amboy Alberta Envirofuels Soliciting Bids GS Power Signed Under Review Egypt Pakistan Caltex Australia Refining 14

15 R&M Restructuring Strengthens Returns Country Count % reduction Focused footprint Simpler model Reduced costs Higher returns Trade Sales Million Barrels / Day % reduction Terminal Count Company-Owned Stations Headcount Thousands % reduction % reduction % reduction Excludes Chemicals 15

16 Strong Competitive Performance $ 2.21 per barrel 2011 Adjusted Earnings* 14.3 % 2011 Adjusted ROCE $5 $4 $3 3 $2 5 1 $1 1 $0 6 -$ % 25% 15% % 6-5% * Adjusted earnings per barrel exclude Chemicals due to availability of volume data. 1 CVX Ranking Relative to Competitors 1 being the best Competitor Range: BP, COP, RDS, TOT, XOM, Competitor analysis based on Chevron estimates and public information handled on a consistent basis. Excludes special items. Reconciliation to non-gaap earnings measure for Chevron can be found in the Appendix of this presentation. Chevron s 2007 to 2010 information is conformed to 2011 segment presentation. 16

17 Downstream Themes Strategy Performance Growth 17

18 Portfolio Optimization Emphasizes Higher Return Segments Relative Capital Employed Other Lubricants Chemicals Refining & Marketing Growth in higher return segments Conscious investment shift Portfolio balance

19 GS Caltex Yeosu, South Korea Deep Integration, Positioned for Growth 4th largest refinery in the world 3rd largest aromatics plant in the world Fuels, petrochemicals and base oil integration Solomon Utilization Yeosu vs. Competitor Range Competitor Range (Solomon Asia Pacific excluding Japan) Yeosu Equivalent Distillation Capacity Million Barrels Per Day Source: Solomon, Oil & Gas Journal 19

20 Middle East N. America Ethane N. America Naphtha Europe Asia Chevron Phillips Chemical Company Top Performer in Advantaged Geographies First quartile peer return-onassets Largest IOC petrochemical producer in Middle East Access to low cost feedstock Ethylene Cash Cost $/MT 1,000 Plans for 1.5MM MTA Cedar Bayou Texas ethylene cracker Peer group: Borealis, Dow, LYO, NCX, RDS, Westlake, XOM 100 % of Chevron Phillips ethylene capacity in Middle East and North America Source: CMAI 20

21 Chevron Lubricants Industry Leading Premium Base Oil Technology First all-hydroprocessing base oil plant No.1 producer of premium base oils in Pacific Rim Premium Base Oil Capacity by end of 2013 MBD 60 World leader in premium base oil production by RDS XOM 20 S-Oil SK 0 Project Sanctioned Source: Lubes n Greases 21

22 Chevron Oronite Specialty Chemicals Growing High Return Segment World-scale plants in all three demand regions Largest additives plant in Asia No.1 market share and technology Marine Railroad Natural gas engine oil Lubricant Additives Demand 55 % increase Asia Pacific 21 % increase Europe Africa Middle East 7 % increase Americas Source: Chevron analysis and projections 22

23 Investing in Asia, Chemicals and Lubricants Pascagoula Premium Base Oils 25 MBD Saudi Arabia Olefins & Derivatives 3.3 million MT/year Singapore Additive Expansion 120,000 MT/year South Korea Gas Oil Conversion 53 MBD Startup Timing

24 Well-Positioned for Today and the Future Strategy Improve returns Operational excellence Focused portfolio Competitive assets Performance Top-tier performance Safety Reliability Profitability Growth Targeting growth Asia Chemicals Lubricants 24

25 Questions and Answers

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