Downstream & Chemicals Mike Wirth Executive Vice President
Themes Strategy Performance Growth 2
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
Demand Growth Points to Attractive Segments 2010 2020 Outlook 2010 2020 Outlook Premium Base Oils 83 % growth Rest of World Asia is the primary growth engine Fuels 14 % growth Americas Petrochemicals 43 % growth Americas Asia Americas Rest of World Asia Lubricants and petchem growth faster than fuels Distillate growth continues globally Rest of World Asia Fuel Products 14 % growth Gasoline LPG/Naphtha Distillate Source: Nexant, IHS/Purvin & Gertz and CVX estimates 4
New Resources Creating Opportunity Ethylene cash costs Brent-WTI differential $/MT 1000 North America Ethane Asia Naphtha $/BBL 20 750 15 500 10 250 Middle East Ethane 5 0 2008 2012 2008 2012 2008 2012 0 2010 2015 2020 Source: Nexant, EIA Annual Energy Outlook (2013 early release) 5
Themes Strategy Performance Growth 6
Sustained Top-Tier Reliability Sustaining high-level of utilization performance Solomon Utilization Chevron vs. International Majors 85% Deploying turnaround improvement initiatives 7 80% 2 3 1 1 1 75% 70% 2000 2002 2004 2006 2008 2010 2012 CVX Ranking Relative to Competitors 1 being the best Competitor Range (Majors tracked by Solomon) Source: Solomon Associates, CVX estimates 7
Restructuring Complete Country Count 143 67 % reduction Focused footprint Simpler model Reduced costs Trade Sales Million Barrels / Day 2.9 2.3 21 % reduction 47 2006 2012 Higher returns 2006 2012 Terminal Count 260 57 % reduction Company-Owned Stations 4300 61 % reduction Headcount Thousands 18.8 37 % reduction 111 1700 11.8 2008 2012 2008 2012 2008 2012 Excludes chemicals 8
We Deliver Results Return on Capital Employed 3-Year R&M Commitment Portfolio and Costs 7 % Improvement Target 10 % Improvement Actual Marketing Market? Refining 2009 2012 Excludes chemicals, non-recurring items 9
Strong Competitive Performance $ 3.01 per barrel 2012 Adjusted Earnings* $3 $2 $1 3 1 1 2 18.1 % 2012 Adjusted ROCE $0 5 -$1 2008 2009 2010 2011 2012 30% 20% 10% 0% 2 2 2 5 2008 2009 2010 2011 2012 * Downstream excluding chemicals Base chemicals included for TOT starting 2012 CVX Ranking Relative to Competitors 1 being the best Competitor Range BP, RDS, TOT, XOM Source: Competitor analysis based on publicly available information. Adjusted ROCE analysis based on Chevron estimates and public information treated 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 2008 to 2010 information conforms to 2011 segment presentation. 10
Themes Strategy Performance Growth 11
Competitive Asia Portfolio Focused footprint Scale at regional and facility level High Value Products Gasoline & Distillates, MMBD XOM Strong market positions 1.0 RDS Targeted capital investments 0.5 BP 0.0 Refinery Capacity Average Size, MBD 300 200 100 XOM RDS BP Refinery Product Supply 0 Both charts are 100% basis Source: CVX estimates 12
Chevron Phillips Commodity Chemicals Growth Advantaged feedstock position North America and Middle East Strong performance trend Peer leading cash returns Attractive opportunities USGC Cracker FID 2013 Feedstock Cost $/MT 1,000 500 0 Middle East Performance N. America Ethane EBITDA/Average Assets* N. America Naphtha Asia Naphtha 40% 20% 0% -20% 4 * Adjusted for non-operational earnings 1 2 2008 2009 2010 2011 2012 CPChem Ranking 1 Competitor Range XOM, RDS, LYO, DOW, WLK, BAK, Nova, Borealis Source: Nexant, CPChem estimates 13
Chevron Oronite Specialty Chemicals Growth Lubricant Additives Demand 55 % increase 21 % increase 7 % increase Asia Pacific Europe Africa Middle East Americas World-scale plants 3 major demand centers Expanding capacity Detergents and dispersants Investing in technology Differentiated engine oil additives Performance After-Tax Earnings 4-year Average 3x increase 05 08 09 12 Operating Expenses 4-year Average 2010 2020 05 08 09 12 Source: CVX estimates 14
Chevron Lubricants Growing a High Margin Business Base Oil Capacity Premium Base Oils end of 2013 MBD 60 40 RDS XOM Premium base oils Leading producer Expanding capacity Asia and Americas Sustaining profitable growth Performance After-Tax Earnings 4-year Average 2x increase 05 08 09 12 20 Operating Expenses 4-year Average 0 Pascagoula Base Oil Plant 05 08 09 12 Source: Lubes n Greases 15
Major Capital Projects Drive Earnings Growth Cedar Bayou Hexene Plant 250 kmta USGC Petrochemicals Ethylene 1500 kmta Polyethylene 1000 kmta Oronite Additives Plant Expansions Singapore Capital Employed 2011 24 % 29 % 47 % 2015 33 % 34 % Projected Startup 33 % 2013 2014 2015-17 Pascagoula Premium Base Oils 25 MBD South Korea Gas Oil Conversion 53 MBD Chemicals & Lubricants R&M - Asia Pacific R&M - All Other 16
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 17
Questions and Answers
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