PDF《Chevron Reports Second Quarter》

- MORE - Chevron Reports Second Quarter Loss of $1.

5 Billion ? Impairments and lower crude oil prices reduce earnings ? Continued progress on spend reduction and major growth projects San Ramon, Calif., July 29,

2016 C Chevron Corporation (NYSE: CVX) today reported a loss of $1.5 billion ($0.78 per share C diluted) for second quarter 2016, compared with earnings of $571 million ($0.30 per share C diluted) in the second quarter of 2015. Included in the quarter were impairments and other non-cash charges totaling $2.8 billion, partially offset by gains on asset sales of $420 million. Foreign currency effects increased earnings in the

2016 second quarter by $279 million, compared with a decrease of $251 million a year earlier. Sales and other operating revenues in second quarter

2016 were $28 billion, compared to $37 billion in the year-ago period. Earnings Summary Three Months Ended June

30 Six Months Ended June

30 Millions of dollars

2016 2015

2016 2015 Earnings by Business Segment Upstream $(2,462) $(2,219) $(3,921) $(659) Downstream 1,278 2,956 2,013 4,379 All Other (286) (166) (287) (582) Total (1)(2) $(1,470) $571 $(2,195) $3,138 (1) Includes foreign currency effects $279 $(251) $(40) $329 (2) Net income (loss) attributable to Chevron Corporation (See Attachment 1) The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world, said Chairman and CEO John Watson. In our upstream business, we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. Our downstream business continued to perform well. We continue to make progress towards our goal of getting cash balanced, Watson added. Our operating expenses and capital spending were reduced over $6 billion from the first six months of 2015. In addition, we'

re bringing our major capital projects to completion, Watson stated. We have restarted LNG production and cargo shipments at Gorgon and Angola LNG, and started up the third train at the Chuandongbei Project in China. Construction at our other key projects is progressing, and we expect additional start-ups later this year. As these projects continue to ramp up, they are expected to increase net cash generation in future quarters. We recently announced the final investment decision on the Future Growth and Wellhead Pressure Management Project at Tengiz in Kazakhstan, Watson added. The project -

2 - - MORE - represents an excellent opportunity for the company. It builds on our strong track record at Tengiz and is expected to create future value for our shareholders. UPSTREAM Worldwide net oil-equivalent production was 2.53 million barrels per day in second quarter 2016, compared with 2.60 million barrels per day from a year ago. Production increases from project ramp-ups in the United States, Angola, Canada and other areas were more than offset by normal field declines, the effect of asset sales, the Partitioned Zone shut-in, maintenance-related downtime, and the effects of civil unrest in Nigeria. U.S. Upstream Three Months Ended June

30 Six Months Ended June

30 Millions of Dollars

2016 2015

2016 2015 Earnings $(1,113) $(1,038) $(1,963) $(1,498) U.S. upstream operations incurred a loss of $1.11 billion in second quarter

2016 compared with a loss of $1.04 billion from a year ago. The decrease in earnings was due to lower crude oil and natural gas realizations, partially offset by lower depreciation, operating and exploration expenses. In both quarters, depreciation expense was impacted by a similar amount of impairments and other charges. The company'