Downstream Mike Wirth Executive Vice President
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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
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 2010 2020 Demand Modest growth and surplus capacity 2010 2020 Demand 2010 2020 Demand Petrochemicals and lubricants are growth segments Source: Purvin & Gertz, Nexant ChemSystems, Kline & Company 4
Fuels Demand Outlook Plays to Our Strength 2010 2020 Growth By Region 2010 2020 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
Advantaged Fuels Footprint 72 % of Chevron Refining Equivalent Distillation Capacity Equivalent Distillation Capacity Million Barrels Per Day Pacific Rim 15 10 5 0 Rest of World 40 30 20 Chevron Refineries 10 0 Source: Oil & Gas Journal, Company Data 6
Petrochemicals and Lubricants Demand Growth 2010 2020 Growth Petrochemicals 2010 2020 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
Downstream Themes Strategy Performance Growth 8
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 2009 2012 Excludes Chemicals, non-recurring items 9
Continuing Refining Improvements Improvements ($MM B/T) vs. 2008 Baseline $ 700 MM Target 300 575 400 275 600 400 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
Sustained Top-Tier Reliability Solomon Utilization Chevron vs. International Majors 85% 80% 75% 7 2 3 1 1 1 Sustaining high-level of performance Deploying turnaround improvement initiatives 2000 2002 2004 2006 2008 2010 2011 1 CVX Ranking Relative to Competitors 1 being the best Competitor Range (Majors tracked by Solomon) Source: Solomon Associates, Company Data 11
Superior Energy Efficiency and Cash Margin Energy Intensity Index Net Cash Margin Indexed to 2000 Average 115 Better 300 Better 100 4 3 2 2 2 2 200 100 6 5 3 4 4 2 85 2000 2002 2004 2006 2008 2010 2011 0 2000 2002 2004 2006 2008 2010 2011 1 CVX Ranking Relative to Competitors 1 being the best Competitor Range (Majors tracked by Solomon) Source: Solomon Associates, Company Data 12
2011 Portfolio Actions Country Exits 27 Asset Divestments Pembroke Refinery UK, Ireland Marketing 13 Terminals 2005-2011 Cash (B/T) $ 8B Exit locations 13
Portfolio Rationalization Continues Signed Spain Caribbean Perth Amboy Alberta Envirofuels Soliciting Bids GS Power Signed Under Review Egypt Pakistan Caltex Australia Refining 14
R&M Restructuring Strengthens Returns Country Count 143 55 2006 2011 62 % reduction Focused footprint Simpler model Reduced costs Higher returns Trade Sales Million Barrels / Day 2.9 2.4 2006 2011 17 % reduction Terminal Count Company-Owned Stations Headcount Thousands 260 123 53 % reduction 4300 2300 47 % reduction 18.8 12.1 36 % reduction 2008 2011 2008 2011 2008 2011 Excludes Chemicals 15
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 -$1 2007 2008 2009 2010 2011 35% 25% 15% 5 2 2 5% 6-5% 2007 2008 2009 2010 2011 * 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
Downstream Themes Strategy Performance Growth 17
Portfolio Optimization Emphasizes Higher Return Segments Relative Capital Employed Other Lubricants Chemicals Refining & Marketing Growth in higher return segments Conscious investment shift Portfolio balance 2011 2014 18
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 100 80 60 Competitor Range (Solomon Asia Pacific excluding Japan) Yeosu 40 2004 2006 2008 2010 2011 Equivalent Distillation Capacity Million Barrels Per Day 6 4 2 0 2004 2006 2008 2010 2011 Source: Solomon, Oil & Gas Journal 19
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 500 0 Peer group: Borealis, Dow, LYO, NCX, RDS, Westlake, XOM 100 % of Chevron Phillips ethylene capacity in Middle East and North America Source: CMAI 20
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 2013 40 RDS XOM 20 S-Oil SK 0 Project Sanctioned Source: Lubes n Greases 21
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 2010 2020 Source: Chevron analysis and projections 22
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 2012 2013 2014 23
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
Questions and Answers
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