Chevron Announces Second Quarter 2020 Results•

Capital and operating cost reductions on track•

Second quarter loss of $8.3 billion; adjusted loss of $3.0 billion•

Includes non-cash net charges of $5.2 billion and a $310 million asset sale gain•

Enters agreement to acquire Noble Energy

San Ramon, Calif., July 31, 2020 – Chevron Corporation (NYSE: CVX) today reported a loss of $8.3 billion ($(4.44) per share – diluted) for second quarter2020, compared with earnings of $4.3 billion ($2.27 per share – diluted) in second quarter2019. Included in the current quarter were impairments and other net charges of $1.8 billion primarily associated with downward revisions to the company’s commodity price outlook, severance accruals of $780 million, and a gain of $310 million on the sale of Azerbaijan assets. The company also fully impaired its $2.6 billion investment in Venezuela due to uncertainty associated with the current operating environment and overall outlook. Foreign currency effects decreased earnings by $437 million.

“The past few months have presented unique challenges,” said Michael K. Wirth, Chevron’s chairman of the board and chief executive officer. “The economic impact of the response to COVID-19 significantly reduced demand for our products and lowered commodity prices. Given the uncertainties associated with economic recovery, and ample oil and gas supplies, we made a downward revision to our commodity price outlook which resulted in asset impairments and other charges.” While demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter 2020

“We reduced our capital budget in response to the current environment and are on track with our commitment to lower operating expense,” Wirth added. Second quarter organic capital expenditures were $3.0 billion, 40 percent below the quarterly budget, and year to date organic capital expenditures are on track with the company’s revised full year guidance of $14 billion. While second quarter 2020 operating expenses of $7.1 billion were up 13 percent from second quarter 2019, second quarter 2020 operating expenses, excluding severance accruals of $1 billion, were down 3 percent compared to the year ago period.

Chevron remains committed to its people, assets and operations in Venezuela. The current operating environment and overall outlook create significant uncertainties regarding recoverability of the company’s investments, leading to a full impairment. Chevron will continue to fulfill its contractual obligations as permitted under the current sanctions and general license, with the intent to return to normal operations in due course. “I’m proud of our employees’ response to the health, economic and social crises facing the world,” Wirth added. “Our operations continue to run safely — providing the energy essential to every day life. We’re transforming our company to be more efficient, agile and innovative. And we’re having the difficult conversations about race and reaffirming our commitment to equal pay, equal opportunity and equal rights.”

“We’re focused on what we can control. Our actions are guided by our values and our long-standing financial priorities: to protect the dividend, invest for long term value and maintain a strong balance sheet,” Wirth affirmed.Additionally, the company recently announced that it entered into a definitive agreement with Noble Energy to acquire all of its outstanding shares in an all stock transaction. Wirth said, “Noble’s high-quality assets provide Chevron with low-cost, proved reserves and attractive undeveloped resources that will enhance an already advantaged Upstream portfolio. We believe this transaction will unlock significant value for shareholders of both companies.”