Chevron (CVX) 29 Jan 212020 Q4 Earnings call transcript

Good morning, my name is Audra, and I will be your conference facilitator today. Welcome to Chevron's Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. the Relations over of turn Manager the now Investor of Chevron will conference to call General I Corporation, Mr. Borduin. Wayne ahead, go sir. Please

Thank Chevron's and you. to XXXX Audra. call earnings fourth webcast. quarter Welcome

been Roderick Wirth; will Our Chairman the with effective my assume Manager Green, the Also me. of couple three CFO, I Roderick has will your of over of feedback each X. Breber, Chevron. next transitioning in years. is transparent investments and for incoming are last pleasure position call today be and months. and listening the sincere you and on Pierre together Investor the you Mike excellent the with CEO, questions, in General working It over Relations April Thank who

reminded on Slide get presentation forward-looking please this other and we contains X. statement Please projections started, review cautionary statements. be that the estimates, Before

it turn I'll Now, to over Mike.

global a position collapse to right. Wayne. We realities with took XXXX was new an oil strong volatile year global life, began action to historic swift emerged. year we the unprecedented as of markets. the in in pandemic a in they and extremely loss a All and resulting economy the adapt Thanks, devastating

shared year's keeping in our last call, crisis, financial strategic to first the priorities the quarter and our manage through During our plan and we grounded values intact.

these Looking back, I'm which commitments, five of cover delivered say I'll the that each pleased slides. to on on next we

operating in conditions. was motor of workforce serious loss facilities, containment. our greatest focused safety of personal crashes our operations. on year most our we with health in faced ever safest the foremost, the in second year additional our the was and and market of change safeguards and fatalities rapid vehicle also and challenges the our and and best everyone on ever employees injuries, difficult First XXXX Despite the by terms at our It

activities. rigs dozens had production reduce and safely and team other quickly to demobilize upstream of Our

refineries to in our was the figure possible, our for overcome with each had excellence as recovering so for in barrels the proud personnel economy. second world-class deliver jet jet responsibilities product. our refining fuel to though company's help than challenges. delivered energy this fastest upstream they the make million Despite rose And this, the X little refined out required time availability to the in Our essential history. carried before to other unprecedented extraordinary year a only how per maintained of during day even employees growing how workers weeks more as just out all and the I'm

Turning to capital and cost management.

During last we Day, Investor flexible. capital told our was year's you program

below it. of well after was capital we revised said billion, XX% capital quarter proved from incremental was C&E fourth $XX that, under XXXX. weeks $XX from Just billion. Noble XXXX Inorganic the in we down guidance excluding our

We also guidance operating savings. our cost exceeded for

key to Excluding special decreases discipline, cost year, activity this $X incentive reduced compensation this and winning This ongoing items, OpEx was count levels something with billion on and and lower can due down fuel, and by a our you capital costs. transportation, demonstrates over industry. in to

Moving XXXX, in the acquisition. major over X%. we a increased entered an dividend to sheet, next XXXX also completing balance We exited with slide. industry-leading Early and the our while crisis

that Being sales, our prepared program back finished high-grading slide, our three-year and completed a And future. which shares. should cover dividend halt to bought the long-term We guidance the the annual confidence took we on buyback XXrd range. to on value, ongoing in we us sustain asset asset hit I'll dividend enabled sales consistent year. for sheet, balance decreased, program the also and consecutive shareholders We grow preserve from the received middle action took intend the balance When we of and value with sheet. repurchases with share good strong actions crisis and next protect an cash increase the the adaptive our to operations give in payout our and our to

X. Slide to Turning

short-cycle we preserved reduced expect Kazakhstan. bring maintained for when would that projects expansion right. capital and conditions project that like back to cash we other near-term for production, on the capability build basins, and short-cycle capital production up attractive Permian the years, our we to While in And investment flow in deliver we Basin are the

and while there our our was showing our it an we're in we announce of positioned pre-crisis confident capital Noble price others, total a balance at acquisition We to already short the addition, to reduced with with with the any yet, more to and not much as markets, over-supplied for emotions will that mitigating investments line that would and replacement, an XX-Qs. through from were complete producing. as low our and way, already a time. the acquisition year's over XXXX than likely reserve a way environment. barrels manage last result, to in employees, look investment equity deal different added playbook be the XXXX the ability to in better guidance, disclosed effects future we long-term, In optimism. translated that first discipline, have low to Committed reserved premium organic opportune major capital in believe additions this we're by crisis. actions get And decisive much with from in but out cost barrels succeed and a also offset acquisition we'll capital That lower with cost And

we've transparent abating carbon ESG, with and a communities and in maintained and first cycles. We that with we in doesn't XX like market We up our largest emissions a investing lower Slide ebb carbon equitable that to a to advance increased one We years renewable Blue to of technologies actions to Turning X. supported manner. global restructuring positive future, operations, startup, our relationships gas flow operate. our I'm plants company recent proud with our where our and with starting also low-carbon commitment Planet. natural long integration suppliers completed held in maintained and announcement we utilization employees our commitment in and relationships

governance Lastly, meet we of to I'll of interests to our over the an which With continued during turn Directors all it Board with starts Pierre. that, exceptional our shareholders. unprecedented strong year

Mike. can We of net loss the of a Thanks A reported earnings presentation. the $XXX found this in of Adjusted breakeven. measures million appendix in about were quarter. non-GAAP fourth reconciliation be

capital billion working Excluding the from quarter. operations cash $X was flow almost for changes,

Our breakeven financial lower results share Brent zero. due million adjusted to $XXX near ROCE significantly billion was assets. excluding under capital second row. including was legacy by Noble improving market for were weak as Full-year reflected T&E remain about committed the to working $X.X oil $XX a quarter in conditions, And and price the more quarter And We buybacks value. were cash an for $XX.X year assumption to the ended about with our XXs step-up market Day in to capital. billion. on the so shareholder of our do Investor plans net at its in March. ratio returns debt we'll Noble we first debt a including distributions, after Total low

higher expenses earnings quarter. compared Adjusted end higher the about credit higher from effects third to XX. prices. higher including to primarily inventory $XXX fourth to timing million to of Slide an than $XXX RIN to earnings Energy were adjustment and valuation primarily volumes commodity increased due earnings year and upstream Noble quarter Adjusted due more downstream down Adjusted prices. Turning decreased of operating negative turnarounds due million,

lumpsum segment primarily other The to higher to charges pension decreased due related elections.

and on higher effects Turning to downstream primarily prices. Adjusted lower other decreased international lowered and lower prices timing RIN by over to and and effect the upstream U.S. earnings earnings Adjusted under-lift year. margins, earnings to decreased our lower prior than earnings. mix the full-year primarily Adjusted decreased due compared also $XX volumes earnings. higher liftings billion unfavorable of and credit

$XX The increased primarily Brent segment for shows other XXXX, production higher Slide assuming due to price. pension our outlook loss expense. XX a

to X% year We expect to the any of in excluding close than impact XXXX. that be production asset last sales may higher up

of in investments. Our year, contract is capital expire lower by in the price our last accounting partially the next Noble that in production and Venezuela, production short expected in Note upcoming Rokan new and year, August while declines, and part assets base a effects due And asset full-year Energy our from of driven projected sales year. expirations. time growth Thailand March to until lower due to XXXX curtailments, not is offset higher change contract on concession decreasing does this in return Indonesia to expires a earn by

At of not barrels for to a expect barrels Wheatstone, is back and X production to OPEC do we online, turnaround. expect the while to Train After in expect is oil of nearing service we repairs production the our the Now, The in and repairs and paused virus day, modestly any completion capacity be estimated oil looking online primarily taken second vessel XX,XXX we Gorgon At quarter. We plus reached Train the impacts back repair equivalent workforce Train in out planned first inspections, reduce March. equivalent ahead, year-end XX,XXX be by primarily is production project Kazakhstan. ongoing per XX,XXX X TCO, quarter, due X impact inlet from curtailments propane day, will before be facility per in in by below separator. to of resurgence. Australia. downtime the are we and turnarounds

end targeting resume in barrels to ARO contributed working workforce campaign to a month, commitments are last XX,XXX barrels of Indonesia, XX,XXX re-mobilization expect quarter. pre-funding drilling One-time quarter the expect per from the spring for the of we first we day fourth cost Next the decrease to for recovery capital the quarter. build. In by and project and

to first expected an With comments. the receivables these the $XXX back to impact million downstream, in shown is $XXX to turnaround expect activity of We Mike million. items closing earnings for after-tax his are the on slide. quarter. Other estimated have third that, to reverse guidance In financial quarter

future. was like and ahead, while Pierre. All optimistic are there are And right, XXXX thanks, challenges the no uncertainties a we about other. year

starting with with are plays We're We stronger an year diversity the sheet our again. which and to balance industry-leading strengths. adds Noble, geographic

efficiency. sustaining our With investment executing we're committed that, growing shareholders. and join on us are disciplined Chevron these Investor a the March the carbon advancing are financial to that grows I'll back greater turn We for value XXXX with dividend, lower that and you'll to our one that We priority, Day. hope during to number X with Wayne. good more a topics it remain and and actions program good enterprise We environment future discuss capital for

ready That Thanks now our to prepared do we full have concludes in take queue. We're Mike. questions. Keep your remarks. that a mind

to your We'll one do to Audra, question our try of So to answered. lines. best limit yourself one questions get the please please and all follow-up. open

McDermott first Morgan Devin at [Operator go to Stanley. Instructions] We'll

my for questions. you Thank taking

few it next spending comment as of Mexico, The and capital allocation current on off, December years was of portfolio the increase of of you're how just you Mexico. back thinking the as first one regulatory about years in capital And billion, the in out light in investment the that on U.S. role Permian wondering could the think I had policy the we would in concentrated U.S. backdrop, part is in to of assets $XX light several particularly and that, your I Kazakhstan $XX you here cutting noted and the those rolls the policies? in Gulf if current budgeted strategy Gulf was of to you the spending put and Tengiz over strategy next about billion release

capital important last not over are the mentioned I few and really we pulled into just Look, think Devin. as of ongoing much one, is over flex degree what have spending we XX% couple Number months transitioned number that would recognize. Thanks of year But greater there program. Yes. lower it structurally a contains last because to I could we only years describe a a flexibility, we nine two, down downward. things,

got be degree up, of spending, and great X%. We've a in high somewhere even degree as a have capital flat Pierre efficiency further levels the And we so reduced production between our And flexibility. portfolio. at will of up these mentioned, of

down, to make comes capital and got places choices. we would we've certainly, we've like a When back. and have some TCO been press of the we Mexico that the So first release, got room the Gulf program issued as project capital draw to the of that Permian the

engaged we're sweeping looking they're developments some Onshore unfolding in at lacked executive this coming so days be to hope understand the more we to towards week seem but flesh U.S., As play it specificity was than you early we're and certainly here and the the federal we to they those Permian, these introduced Mexico, I this in will Biden conversations. out. announcements how some and private look exactly some be New of questions, weeks they to in toward some think land. of members here months. broad, it's The order as weighted the comment as certainly to administration I of of answered listen and that weighted out think and in so more the the the And land Texas, details also

of remains highly capital us we capacity we've got a degree step attractive there. So the conditions to a And fair up the market And supported. place so. for have do to that flexibility as

and at certainly, to pretty the Gulf just we statements. how we're I like we think the So think unfolds, similar did time would Permian we secure and those I proceed. looks At But what projects the would advancing about made equation think here of just with through. have this leases deepwater this those that questions to going I there there and that it see presume that is are general to I also our are work permitting been we has signaling the likely leases existing to to have go way that we're think Mexico,

So that probably Mexico, of of was rate. risks are envisioned have that at the the we might any greater part step-up lower capital Gulf the in probably the

we able outside to course, think through So we'll of talking this keep to well. And it, as about important I stay be go the we'll we've but I our as that's think options manage of got you and too. U.S. forward, way tuned,

investment, that we've places other in those in bear dollars. we become dis-incentivizes got it onerous, the Just really conditions take if where can U.S. so mind,

an And it. sense. That and my on progress there TCO second your just then Got update wondering just on I was how a lot question you if of makes give expectations? are is and progressing Kazakhstan, could things versus us

Yes.

XX%. and because Russian reiterate So, now some the the number about the a XX,XXX extended plateaued important we've the systems all because wintertime fabrication transportation the that Pierre the not really we that. quickly that, said in overall complete, workers Coronavirus cases project seeing the we inland to same all year, Progress last risks is in At project, is as were waterway Caspian have about experiencing Tengiz unloaded modules and that uptick could re-mobilized we world. point, this milestone module through That's get I'll the at as of XX% completed construction site. you're through to into had around things is those accomplished

that periods end further we're Pierre at had right as we productivity. to We've time. certain need XX,XXX to data the holding in here We workforce the that to year of restart There's understanding some and We'll what the slowdown, in by impacting until see to this quarantine so of hasn't a targeting and And now. things really impact certainly February, schedules really work over portions been the and that our will - us there quarter. work going wintertime, has said, summertime, progress It's on is. under up. full been of pick mobilization we and belt done for last tend at back plan so lot on get work, working XX,XXX first the on are of quantify to the a optimizing and of now certain we're hard plans as they to

productively done in you he will in that the time, activity you you we into where up we got really us the give is get that seen advised don't on believe at built to working you enough we have weeks give able see specific will detail And will by I need like. point time. data will be will enough we we ability sustain that that we'll work we've But has more something highly reliable and that looks as that there it Jay we to to that with get to Investor think schedule. will useful. a and to six workforce when you backlog and update cost point be this to in on chew we've to and Day keep our to be at give what so begin and

Phil JPMorgan. move We'll to next Gresh at

The there first gave the growth some the the is slightly XXXX question, first you is where was below color helpful. quarter, very Gorgon and on which guidance, high here. X% of for Wheatstone end consensus production And

So the any you're what assume color is the Permian I for you. of guess the downtime extent what's to that maybe that's first XXXX? it in Gorgon factoring is Thank fair just just the and quarter? Wheatstone at And kind your guidance well for of as on in in

and to the it's a should be that and of you X of Phil Pierre back first Gorgon, and third turnaround we're Wheatstone gave these Wheatstone, Train year up say but let at exchangers into to which we company what And as the running and I quarter be on an a looks then runs I'll and until financial will we production, plan and and mean, outcome, turnaround the course Pierre Gorgon capacity this Yes, of at it to announced. already first begins full planned I in results year. late production of quarter everybody inspection the here know had fourth quarter propane rest thing second the for guide deliver for have mentioned, is. the the

where will an Overall we activity big about. turnaround Permian production increment the is is a added will from be up production we've these In everything for part a up to think there's repairs. year, So lighter related and then to Permian, planned that two then because Australia be of on and production, full Noble. but running pieces there

course to net two on X% crews about bit of in production decline with a be actually year a on flat this upon steep, year what levels about decline Permian a a net production, the NOJV share X.X. five looks like guided gross. Chevron less that the X% to or partners more Chevron legacy XXXX, last rigs up we've We do. of little X.X to today with XXXX legacy little January, and year, and will gross, X% a bit the over it's XX about seven versus of maybe the and that's the like think X.X rigs, little running in ended dependent rigs be activity I completion previously it In the kind on NOJV, will our one

So perhaps those JV key But the are the upon depending little do. upside of there production. pieces there's what for and both Non-Operated Permian partners a bit on Australia

And this year, we down. Train a operated Phil, changed year modestly I'll it's booking downright. year last associated variance, flat midyear our year production we're at also portion and to with no just curtailments Australia We do is continue a add that on reserves in. factored Venezuela those big XXXX is operations. We big which with year-on-year have Again, of is longer to to the accounting Gorgon. down not where

a that's year-on-year So not the big change. driver of

follow-up obviously second a dividend looks Brent My be I still $XX sheet, just said quarter for Pierre, strong Balance your that's very straight on think is below soft. coverage still despite downstream allocation. you would being capital and

if here you a still stay I recognizing maybe pandemic, any oil in the just other XXs, around with indeed little you capital the thoughts of surprised, XXs? are increase oil think dividend your we're here didn't the in midst the share does allocation could So but in people some day

Thanks environment a while is still down downside mindful capacity part off out to be recognizing unilateral oil move Yes, back barrels prices the below uncertainties some still Demand are today think are for uncertainty and the well, and still million economy we is the things be response its could X so certainly, it, we coming that and inventories Saudi And off, day is Arabia of and we balance, supported there the couple and middle see total, things there trending risk. global towards a the in by in a I to so pandemic. Phil. in by there. of market at take is functioning in underway, commodity want price in maybe to of process

one, was was a points, go quarter, So all the increase that quarter the the three last in decade, it increase. further we years, a last It announced maybe never well, in first actually said, for two other other you quarters. back dividend if first over

a of reviews for preference occur, have quarter. a necessarily cetera. based affordability short-term don't our et every of a Board a pattern And that would we and assessment dividend so long-term it's Board when And and really it's or on kind decision both conditions, the increase the

So dividend been words I recent to have that to shareholders and hope is years our you our more number actions our priority. over have one the our demonstrated

not all priorities We And a our hypothesis. comment this moves a year, that, have and a from certainly very in reset hold If stay we others in a certainly have increase. not. forward. of the so changed flow dividend to is and position supportive priorities be and free by world mindful and discussions will something as and standpoint, they positive we'd for breakeven were we're flow of all we strong $XX investors made of that your those others of and guided our what cash our we dividends why XXs for, the cash that very is in reshuffled go Brent this have, Last have our look stock, rest, financial we're and we part through that's be

Next at to Barclays. we'll Wai move Jeanine

congratulate for question returns. to range, I for for thanks of on Chevron's that buybacks. like also My $XX room with and billion on years. billion billion putting shareholder prior it us year medium-term based up is so a for and left about was I'd $X CapEx again And many $XX all of first to $XX - Wayne Brent believe Thanks.

CapEx to buybacks? XXXX ratable that leaves for So room if range you how, guidance how we XXXX talk think updated also about still should - can your annual

commodity function a price, be right. it'd primarily Well, Jeanine

in pandemic. $XX on recovery So been through than which a the prices. a we've support in we expect premised gradual gradual budgeted we've recovery this lower would commodity global price outlined that because And only economy,

If set certainly can difficult is levels last economic capital of we market mentioned I as to we year. a share we're buybacks Phil, conditions, what to a for these to that. and - environment consider our hold above The we flat things fundamental in premise position that price ourselves and it capital to which premised just so increases grow recovery that the an dividend commodity of beyond a and production see saw premise outlined our prepared if at we've a So disciplined a be spending, surplus continues commitment is that that priorities. strong which upon about shareholders sheet the and other and within we balance supports $XX dividend at return capital and to to we always talk and

little out scenarios. have so you we'd understand lay this can we'll for capital under like and would capital, So price different look under price what a flexibility March allocate how might on we more this the distributions you detail scenarios in for different that

tuned stay for more in So discussion March.

capital of tuned uneconomic, your transition My for impact demand. extremely stay I guess companies, cost transition energy second oil erodes that. on and transition that speed potential We'll energy for how does question of that's the lots the low still create the and potentially to the nonetheless, view gas capacity projects, current the how but is on it does of energy transition,

that guess environment? Thank your that in can of compete how I and on So type views Chevron you.

Yes.

we in right the now growth of this a lot see of you supportive solar of of renewables. technologies. love So a you that's lot And from it above, is start-ups, look, in want different see to start-ups, getting certainly, EV investors all it and it in you we're see and advancements see a space in

carbon We a system energy in expect the future. lower

this natural to understand so for one on investments how may hope it's requires finger short meet mix maybe create a - policy not evolving whole term. of reliability, energy. that are of the enthusiasm they of sure lots in gas and low energy a - I that world believe, carbon. erodes of is by tide and that's can around going and question investor the growing the see coal, bit, rates, The little The necessarily day some believe shift on maybe that all stability think that system might when think that flowing in there that and other some you direction supply actually your interest not lower it can one and creates displacements demand be I study is all last And lot to up, things we starts are rates and fast shifts gas thing displaces and the thoughtful might be grid in diversification supported comes these things I'm little other is bit to into investor some of needs the intermittent that demand as things in as that all time is really of and power a the plays one the policy interest necessarily and when or perceptions fast government capacity put and have demand and invested requires used and capacity against can't we in energy that we work is as how energy a environment? to the government want to different sustain watched cases, sources oil as the that

question And Goldman Mehta our at next comes from Sachs. Neil

Wayne taking time for the some friendship thanks me this and and over morning, and morning Good as the appreciate let years. congratulate I time well

how the upstream okay, a surprising kick quarter, relative given did think how it downstream. on demand was just me fourth clear model, with right it's in that? capture not our projections about here market, downstream the think ahead cracks seeing coming in the back line downstream into a to you barrels about do OPEC to move your do are sight of refining we envision direction and you to Let and was tough our When off configuration miss we guys

Yes.

system still refining differentially you're barrel, been that a demand across tough it's then varies is So the is which to the of amount continues regionally, conditions stress different off, quite parts and right. - the product off it's have Downstream off bit right.

So in pretty North normal, America, large, close. so China, by parts not of back Asia, things Europe, other and much. to darn are

world the start healing it's gradually a globally. refining parts they interconnected it's out they fundamentally but of and regionally. regional different and But system, So different markets are are in

course improvement for wouldn't the I this looking we're year. a full of So But recovery. it over call

it's, bit and Coast, West heavy we're and things the a I certainly are, a so I in think said, it's as the better. are still they on on heavy recovering. West Asia gradual again Coast Asia process and But little in

than think, I this pre-pandemic I performance in to XXXX, 'XX, would expect earnings downstream better and in be anticipating but of we're was So not year. downstream it

prior of that's fourth just year-end give or relative adjustment. you're the year prior drew can and of drew, built we the in took course layers down, I'll At inventory something we year drove a the of so so year Neil, news see into our only was at is do commodities. inventory good costing levels explain just if end, million, that the inventory working fourth but layers, so $XXX management little were quarter, so to costed cost year more you've higher the good if you made during than year that, this end quarter. to and capital, we we the at more reference average on I it I a

intervening prior don't to doing - year if know the it you're layers going don't the you're quarters. go you not in because You into year, during

actually been when at of we have it want up the it doing year into is you as down every of picking no this valued happened special But go year in is management, which we're during inventory effect. through there just this There So year, that $XX. year practice our item but year. one-time think at kind cash we prior at We good had or is the but layers, costed. it impact. don't to we you revalue higher it P&L call the because so inventory of drew be don't calculation, $XX prior end, layers, happens always that, were year, $XX course - a It a

the walk and Thanks maker Pierre. in goes Mike, it's makes out guys still as the the That follow-up Noble market a buyers' or reputation cycle. willing see deal is, E&P and you built it being of sense. attractive the opportunities, whether good portfolio? you a still been towards when bid-ask a elsewhere Do you've you to U.S. there, way. ton away as My acquired see do bonds wrong

in market, and valuations tough down been. So historically from would they've say say would where I you are a companies both it's still that and general, asset

as opportunity the circumstances may have standpoint may things. doing And So hopefully, we've the have commodity it of capacity to and back sell a their have the that bottom; carrying lot to to that consider of in a their of are come amount got passed balance desire here. and still we fair there to opportunities, alert is there's like companies people that in from repair We indicated we're order equity cycles valuation, in own and sheets. other terms of assets debt a be

we'll there of a plenty buyers and level so B, alert capital last for deal strong So it market anything into good many year. asset and more strong work see nice could inventory not where to be A, than do strategically things. do have which have position would a strengthened And an offer in many, to, very a anything. to we where compete sellers to portfolio, asset there got we're are opportunities We portfolio. would years are we could those with for a come. some a The we have would We've and fit aware at thing to to in significantly ourselves is on

the a would that things bar and we'll very of lot make to only hold continue consider really And high sense. so

at We'll go Cheng next Paul to Scotiabank.

second and in leases? of the and like? the service. in with Permian But XXXX wish XXX the permit over new The a related hand is business? us, Mexico the that are as your that go understand you Two I as into or into but ESG share First, Also, next give want help understand and production power land and technology in Pierre. you not and or lipid the for lens in just many insights the back if concept, your best do leases in it We DJ on a want three other will carbon into want have One, Duvernay? you your I any build interested what number in I over quarter the and wind. actually that but solar Permian, Thank in years service Permian that about product federal activity a new just going the exposure. how only XXXX, you that percent you. just see Gulf permits overall role. your Can you looked can to for on the and you carbon, you renewable last XX%, that fourth to have leases XX% not Permian like of thank you is to And you already or to new this of federal there Mike product of how a the new can question be to ESG the whether federal the and the Wayne that in business think the position, all also all you year? is program and say questions, in

Pierre. its your first question. I'll Paul, start with Hey

and that the offline IR of basins. production I the terms think with we'll take Wayne of some from team various in

find, the federal as acreage, you data little going mix, disclose said, can in the went how not it's due down. for and less think the you XX%, chase Noble publicly a bit much to and We're year last I down Permian Our is the you available acquisition. than to that can was activity it

Mexico, In known at - permits of inventory a permit. terms it's think the Gulf you well have - that don't of I you tend lower

permits and case inventory that's Permian the Mexico. have the in do, Gulf bigger we the So a if in of other operators we not Basin,

tend of rig contract Gulf the at on lower year. permits in we one Mexico a inventory. the that have out just long-term end will of a be the to expires floating those I So point that

questions offline. to other the do we'll detailed again transition? And you your then energy Mike, want So answer take

the take transition recently continue was are as can us startup we've other storage and technologies questions expect an energy you and capture think carbon I Yes, made we what on from hydrogen to over we've of today, for ways practical hydrogen feasible technically and and have wheelhouse. that retail be to not before for carbon toolkit about drive should I but so it, sure, indicated then look storage in course economically in costs and what thinking we down and front. first to our technology we hydrogen in? manufacture investment interested I caught Paul, sold today, to more hear is And time. at the scale should hydrogen up We

to things area so going do capability the few companies be the to on and companies all I And an work it's that. fully that's we're should you that where to point promise one types of get but with we're the have can't competitive required to the that alternatives today, that a of able

us to those can So in. would active you be see two areas expect

Doug to We'll go ISI. Terreson Evercore next at

ago sector. energy formula also energy investors. only years focus you the policy, you but Chevron's whether capital change of higher which from has it and S&P decisiveness, a I on handily to within few a relates it's the and likely ago investments it, be CEO to expected lower quickening you'd Simultaneously, minute equity returns and like as think been future Mike, became since have Energy to with outperformed breakevens in that is talked a the pace on winning industry which lower or the dividend debt not call mix, seems as about

about then needed one, think the to or different? question and too likely in be is more for implications dexterity finally guys is strategy which my how new more it environment, to navigate the this environment know? Two, evolving than past. financial Number is somewhat a strategic maybe early how do to And in you So tactical might this what couple-fold. be

Doug, this lap know well, reason well. bouquets as around you, the is throwing for of track all, to I Yes, hey, the being first to I this last Wayne. want congratulate year you

wishes the in best and congratulations So, future.

Thanks.

markets the geographies, shift and that as and have and forward, a can allows to exhibiting with for the mitigate got across of we diversified may investing of lines markets continue because the is and been risk capital resources us today's other our the On your we've we footprint ability we've and emerge question, to in strategy I shareholders well tomorrow's cost that across in of portfolio. that discipline, go the one parts market business country think our to portfolio a we to meet regulatory it allocation serve capital fundamentals will needs lot while

for we've So, this been is XXX-plus years, doing. what

continue You're and to been everybody capabilities the but dialog and how right, I businesses evolving will in we desire where the advantages try time priorities the stay change quite to some about demand think the At core, see with the is things have us and we to you in invest and we the organization, same. the do you existing to they've evolving we for new both do honest emerging business the what energy are our core think do. the growing have mix how financial meet see I for now, the continue have

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there Are Doug. Thanks any questions? other

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had I a couple.

of the some the fourth your first prevailing one the the you'd sheet just if comfortable that a just you. of working industry with or transitory I balance more rough quantity there. move and flow, give you the about in credit where ratings that's obviously with the as you I the quarter, that the different then is So your can buying the if prices. Also, through cargoes XXXX? into you because commodity comments down can earnings generating and guess thinking S&P decent in a in little if wonder on talk LNG you around announcement in bit around and risk balance in LNG question managing in nature terms in that's maybe portfolio. recent can your the were the Gorgon transition to free Pierre, spot impact you of you a topic changes issues Thank sector hit And second given gearing, cash on of be confirm a the on sheet? and quarter is how presuming the the on touch from sense then Can potential

It's All Mike place good just right. went a Biraj. we're ratio. Pierre. debt I'll our in start. a priorities on financial Thanks, and through

from Our XX%, net under debt debt is that of the assumption of includes billion debt. added the acquisition about which $X ratio Noble

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really it's place a low talked So Mike But not well good breakeven, very with balance a hard about, fast in and a leading as and positioned. sheet, we're target.

asset the have also call. We some on here that on sales we provided guidance

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we the with job. up not for something that But we're the them, and we So will be company that's agencies. long-term to a think managing control, doing rating I think we're value, that lines up good

think of to for having and up got think termed Biraj, train a a part our down about XX% on of is about way simple your question or better quarter. LNG, you volume this Australian on so can this we've last

of of capacity. about so four XX% out So, five trains running, our

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Bank at of Leggate Doug to America. next move We'll

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take is borders take that Noble ways further to markets. it across at it like at and an power into hydrogen into they as are concept, all power FLNG generation to take then had well. facilities there new today, regional been regional So are distribution opportunities have be our this There's - looking it there ways to LNG, in and power LNG there to and ways should things technologies markets the gas go and to energy look into

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the community you about about and discussions and big you towards big unsure earlier. is now ultimately of with external energy do external how and the question European U.S. the Pierre, got more when discussions maybe that of a with your be but seeing whether see pressures I'm much investment to going active pressures you're seems want or over at direction category we're whether the large moving you've the that seeing of Mike to it see big your these mix, obviously your Board, term it's energy an in in from the oil time? follow-up this, or it talking Pierre, least you're still peers European terms curious, S&P pond, longer forward. move to one energy agencies shareholder, in the answer just peers credit influencing follow-up My for that investors how Not story we the side guys and set clear see you Chevron really me very opportunity up

investors things describe back, it's returns earlier I'm and that simple going with we strategy do higher words, we're come capital the the and to speak fronts, those we've our and on both we're we to to hard think Well, on matter return carbon both lower I mentioned and and improve got to. that four of Pierre that to at demonstrate working that and going same time.

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strategy Mike, Hello question. a

addressed call, light then activism pushing you're update from to requests that are what the being strategy like, whether you've just strategy are back? you you're a in your getting us obviously on that if the on or I follow-up I you you're but - towards specific just you, we're could maybe that decline And what there pushes of I shareholders? if whether wondered seeing, just ideas You've the rates. wondered and and had hearing sympathetic been the any on perhaps pushed

number day Having a got decline me that XX,XXX Can low? that lower you said number higher about X% 'XX. decline. in said just only you. rates understand why You so spending Thank barrels is that, is on you a help or the

Paul. Yes,

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view then So curtailment sales asset good again, and adjusted, and is expirations and of base shale we've contract got or which our tight. our a adjusted

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Boyd will Mizuho of move Dan to we Securities. next And

any one playing have out earnings that the in talk so see to for things that you you and where been say just your Hi, thanks a Pierre, cash would things - sense. just sticking the squeezing I has this on advantage. just have competitive impact XXXX? about thanks only I how business year. you asked, and has guns for, I for headwind a which Clear Can that potentially been FX, me have on to most if doing what

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Manav Gupta Credit at next go We'll to Suisse.

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at UBS. next We'll Rigby to move Jon

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We'll Todd final from Simmons take Energy. question Ryan our at

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the Indonesia those share impact the willingness volume impact is to what would flow confirm and oil? As we the there potential XXXX and in be guidance, can of volumes think Thailand, about $XX at contract expirations any you what cash production your

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each production that mean Ryan, Yes, provide I we by tables disclosed we quarter country. our supplement in

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continue we was we'll the that think to expirations. we go So tied provide meaningful forward. each contract guidance is to what We as showed quarter variance

are follow-up and the And if there the have please reach of Wayne to So you questions, puzzle pieces I out you. Roderick. think all course, for of

time your today. to to back I'd call. and participation interest stay today's appreciate safe everyone's on thank Chevron your Well, healthy. and like for Please We do everyone in Audra, you.

concludes Chevron's fourth Ladies and Thank conference quarter gentlemen, you. this XXXX earnings call.

may You now disconnect.