Chevron Highlights 2013 Performance and Future Growth at Annual Meeting of Stockholders
SAN RAMON, Calif., May 28, 2014 – Chevron Corporation (NYSE: CVX) today provided an overview of the company’s 2013 operational and social performance and future growth plans at its 2014 Annual Meeting of Stockholders in Midland, Texas.
“Chevron’s 2013 results demonstrate that we remain well positioned to grow profitably and continue to deliver superior stockholder value,” said John Watson, chairman of the board and chief executive officer. “We continue to advance key development projects, which underpin our planned growth strategy and capacity to deliver affordable energy to world markets, a cornerstone of economic prosperity.”
During the meeting, Watson discussed Chevron’s 2013 financial and operational performance, highlighting earnings of $21.4 billion and return on capital employed (ROCE) of 13.5 percent. In 2013, the company marked its 26th consecutive year of annual dividend payment increases, which included last year’s dividend increase of 11.1 percent. Chevron announced another quarterly dividend increase of 7 percent in April 2014. Watson also said that Chevron led its peer group in total stockholder return for the five-year period ending Dec. 31, 2013.
Watson further reiterated Chevron’s long-standing dedication to safe, reliable operations. Reinforcing the company’s commitment to process safety, he noted that Chevron’s goal remains zero incidents and ensuring that everyone goes home safely, every day. 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 eight years, Chevron has made nearly $1.5 billion in social investments to local communities.
George Kirkland, Chevron vice chairman, said the company is on track to grow production to 3.1 million barrels of oil-equivalent per day by 2017, up 20% from 2013, with more growth expected through the end of the decade. To reach this goal, the company has more than 70 projects, each with a Chevron share of more than $250 million, scheduled to start-up by the end of this decade. In Australia, the Gorgon project continues to make steady progress toward first liquefied natural gas (LNG), and is 80 percent complete with start-up expected in mid-2015. Wheatstone is now almost 35 percent complete and remains on schedule for a start-up in 2016.
Kirkland continued by outlining Chevron’s profitable growth plans, which focus on building legacy assets associated with crude oil and natural gas. These plans include investing $39.8 billion in 2014, which represents a $2 billion reduction from 2013 spending.
In 2013, Chevron maintained an industry leading earnings per barrel average, which was nearly five dollars per barrel higher than the company’s peer group over the past three years. Chevron has also had the highest ROCE in the Upstream sector since 2011, with an industry leading 17.2 percent in 2013.
Additionally, Kirkland discussed Chevron’s Downstream and Chemicals business, where the company’s refining and marketing earnings per barrel ranked 2nd among peers. This business also posted 10 percent ROCE in spite of a challenging margin environment for the industry.
Kirkland concluded by affirming the Downstream and Chemicals business focus on select areas of growth, including key Chevron Phillips Chemical projects that take advantage of existing infrastructure and attractive feedstocks. This year, the joint -venture company plans to start-up the world’s largest on- purpose 1-hexene plant and broke ground on a world-scale ethylene cracker and derivatives unit on the U.S. Gulf Coast. Also, Chevron’s Pascagoula base oil plant is slated to reach full production by mid-year, making Chevron the largest producer of premium base oil in the world.
Stockholders voted on 10 items and supported the board’s recommendation on each. As of May 28, 2014, the preliminary report of the Inspector of Election was as follows:
- Item 1: An average of 98 percent of the votes cast were voted for each of the 12 nominees for election to the board of directors.
- Item 2: Approximately 98 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 94 percent of the votes cast were voted against the stockholder proposal regarding charitable contribution disclosure.
- Item 5: Approximately 75 percent of the votes cast were voted against the stockholder proposal regarding lobbying disclosure.
- Item 6: Approximately 72 percent of the votes cast were voted against the stockholder proposal regarding report on shale energy operations.
- Item 7: Approximately 81 percent of the votes cast were voted against the stockholder proposal to designate an independent chairman.
- Item 8: Approximately 65 percent of the votes cast were voted against the stockholder proposal to grant holders of 10 percent of the Corporation’s outstanding common stock the power to call special meetings.
- Item 9: Approximately 78 percent of the votes cast were voted against the stockholder proposal to nominate an independent director with environmental expertise.
- Item 10: Approximately 76 percent of the votes cast were voted against the stockholder proposal to report on guidelines for country selection for operations.
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 Materials.”
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”, 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 27 through 29 of the company’s 2013 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.
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