Chevron stockholders discuss 2013 performance, plans for future

May 29, 2014

Chevron Corporation (NYSE: CVX) on May 28 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.

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.

Source: Chevron Press Office, 2014