Chevron (CVX) 28 Oct 222022 Q3 Earnings call transcript

Good morning. My name is Sarah, and I will be your conference facilitator for today. Welcome to Chevron's Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. the of to Chevron turn of General now Relations Investor Corporation, will conference the over Manager I Mr. Roderick Green. Please go ahead.

Welcome Webcast. GM Thank Conference Sarah. to Quarter Third you, XXXX Call and Investor I'm of Green, Roderick Relations. Chevron's Earnings

and Our Pierre on Breber, me. CFO, Chairman with Mike call are CEO, and Wirth; the

and refer slides that available prepared will We the on are remarks to Chevron's website.

statements. will on be contains to estimates, turn other forward-looking Before Slide over presentation projections statement cautionary I this we Please reminded begin, Mike. the that now please it X. review and

Thank us you, for Roderick, and thanks, today. everyone, joining

We our and with security line continue importance to returns higher objective and events carbon. to of see environment. the on In protection. these a safely challenging deliver X and dynamic highlight lower energy environmental and geopolitical imperatives, macroeconomic balancing Chevron prosperity, economic focused Current remains

During investing released our traditional to to continued we our with the by than on capital make management. disclosures specific returning leader for methane in this report a aim delivering and shareholders emissions and businesses. about $X in the return progress Earlier in more third grow the quarter new be row mid-XXs, methane we employed week, a energy billion to both quarter, second to our

the Our report you available goal pipe. on methane is simple: to keep in chevron.com. encourage I read our

clear consistent. remains and strategy Our

results Our keep getting better.

to our While future over market in any shareholders to to With conditions well environment. I'll value we're are it Pierre. uncertain, deliver that, turn positioned

Mike. Thanks,

presentation X%. foreign the and net ratio up debt with reconciliation of of million. We XX% $X exchange results year. repurchased $XXX measures. contains shares settlement financial non-GAAP effects was CapEx Included Third a end quarter this the positive last appendix high from of $XXX the quarter Cash over were strong. billion, currency our range guidance ended at a of under The pension were in costs and quarter million of

chemicals favorable were Upstream a liftings higher driver impacts. and Adjusted Compared earnings earnings partly mainly and of earnings period. Adjusted decreased third offset lower quarter, $X effects. benefits, abandonment a last We're margins beat offset more partially operating up free quarter by margins Adjusted billion. realizations record. than increased higher consecutive higher Adjusted OpEx by in trading higher on partially cash for tax earnings with The is offset down flow billion Chevron's on exploration XXXX's on primarily Richmond increased lower planned modestly. sixth expenses planned upstream In inventory Adjusted refining costs. was cash increased at on and by volumes impacts. on earnings adjusted turnaround. the to track more primarily due charges flow Richmond were Other, refining Partially For timing higher Downstream leases. our free OpEx offsetting Downstream quarter, than lower earnings volumes versus the In exceeded $X by primarily favorable and inventory the earnings higher tax benefits for and higher gains. accruals and higher timing to timing turnaround offset Other, lower swing other refinery are were last and year.

Ford the flat Hurricane and of compared asset. of absence by contracts the Ida ago. and impacts oil offset with along of equivalent expiration to Thailand sale was Permian, our Third the year in quarter the in turnarounds Indonesia and production were Growth a our Eagle

due modest from end quarter, for year and our and dividends. and temperatures. to quarter, of the number a quarter, third After TCO turnaround. we we Now in affiliate maintenance full the we a guidance quarter, received to LNG, In expect the of top third spot from LNG cargoes dividend fourth Angola out at record dividends in XXXX of producing the LNG. we Australia end Angola summer looking expect cargoes fewer expect In ahead, we fourth expect

through As expect we all LNG end to guidance the earnings again quarter, working third a buy $XXX lowers the pay the and we In a a at top payment you, Sabine previously flow. stakeholders. million fourth over cash reminder, objective Also, back accrued at our Back carbon regas tax creates pays contract This In that quarter capital. of returns, Roderick. higher range. early our withholding value shares will showed Chevron's long-term how termination to dividends closing, of was for Pass. XX% lower TCO associated on Chevron of with the

our remarks. That concludes prepared

to now lines. questions. ready are please the open We take your Sarah, [Operator Instructions].

Jeanine with first come question our will Wai And Barclays. Instructions]. from [Operator

Okay. Perfect.

about Sorry that.

right I'd have now. by that think You

U.S. question first on Our is production growth.

the So either year. a averaged relatively this day quarter-over-quarter, so little was Mike $XXX,XXX far Permian flat Pierre, a or under

to industry $XXX,XXX to in the an of -- left we end and guess is can $XXX,XXX supply the going? challenges, you Given I it looks be how left provide the only on you'll operations And lower noticed with update are dynamics chain the guidance X closer that what quarter range. like year, for

just we're or that's external growth wondering also your 'XX that expectations. one this in we factors morning, if lowered so And integrated there's their by noticed of if peers because design driving the Permian

of my up Jeanine, just a XXX. Permian last over a year, production, a barrels year-to-date, numbers little XXX,XXX day, about XX% say first X touch which from Yes, over quarters was

in at the about XXX,XXX XX% we're good versus a quarter quarter And same production seeing XXX itself, day for last was the So up barrels growth. year.

production. that drilled grew. frac for thing wells well people there And miss pandemic, we during the bring need to but and didn't some inventories declining them when the think I demand really uncompleted the may so, online rightfully was is

some drilling So -- kept going. and we

may of now. of first terms in rate So first was year saw completion because of bring to back misled online. and year, DUCs out and send we the thing the We're certainly work, crews back that to Factor drilling And that VIII the of surge this little start was as the back have this the you a part did which of to half went this growth bit we kind through inventory grew capacity. last

is our inventory would line with what suggest it of be. kind DUC would in plan Our

should we're underlying of rate so rate seeing that out the at more kind a is you see. And production level growth that

lower So we ventures. some end we in joint towards will nonratable be give range, the We non-operated we end don't of range likely expect bookings of get to but you the hit because range. high the be from We a range. our the always the

or So in end. guidance the for we'll towards changing forward this lower this we're guidance. case, our be But not year

of Jeanine, And it end the XX% represents year-on-year that add, just range, growth. I'll low

that's growth. So strong very

you Pierre, with Okay. Agreed. here. Maybe, just sticking

In talk caught top would to to going range. million an that 'XX you're pieces, I next CapEx and of in a starting the release article million which terms earlier TCO in that have I to of spend so. to by of year because -- pieces that $XX off, don't be you'll month Permian, and guidance morning, think But we a I or capital see obvious garner this lot some $XX of more going at some are you'll will we it the the about There's know medium-term it your comments most if to is end that roll moving next the this absorbed year. moving know be

of end pushing of the So is macro inflation higher? Or the to the maybe And that reflection a is just environment? Chevron always the part plan? range? some that responding more is, a capital our was question trending to higher little of that Is capital

you the as in part capital always COVID, plan our was just of spoke approving increase said, and about. announce in us coming as It plan We're final And stages budget. for that out to December. business of of Mike investment the our we'll

relative locations. of range, been. do the some should -- You be cost we'll to other when again, to We're the that. the this plans expect up to about and end increase in have those all in inflation what also Permian it XX% December. to contribute next is our And increase that where will in with think we consistent year. share top near a We'll in end announce going that's we details We year have

we're below a capital year-to-date, our an basis. bit budget little on So organic

guidance in line a consistent and with our supplies. is increasing so with result And increase, which XX% growing about that very, in will and again, energy investment

with And our from Goldman next will Neil Mehta Sachs. question come

how love Tengiz? on then assets through Kazakhstan, the of And vacating first would both The the development question out barrels perspective Mike, think there, you just was and as around viewing you're pipeline? via your CPC the

Sure.

on the construction complete construction right So to scale done, risk to this and I'll lot bulk our We're project. of to be risks and track impact. certainly but XX% uncertainty smaller in or tend the to end complete are of the year. schedule guidance, the cost still be and with start by remaining No narrowing change now. potential we're on There's a work

control center operational online. I commissioning activities. into moving We a which built new operations start-up is testing with So and we're integrated visited, systems systems fully that

final The Our station drilling complete. metering is program online. is

you to toward the in and So progress half good very update now 'XX management then pressure as continue construction we and on 'XX. growth progress second the WPMP, project indicated side, for right startup of the future we'll

media there on right seen the a everything of line. are for are move on constraints single-point now that to We've that our the the repairs. the that And no pipeline, probably and producing. reports we've couple you've CPC out some offline On barrels flowed ability been moorings

So the shortly. repairs completed expected be underway and to those are buoyancy system,

continue everything at looks like point, So we'll this flowing so. it and to do

the downstreamer a global and up have system. many I I spent thought don't perspective you Mike, as here. ever refining cracks And that great on as think well would be the years

through we existing your that how be love our your way Downstream do are business? seem in for refining the we the system of the of where bottlenecks that and work just what market, to So means in perspective terms

operating converted others There time, collapsed, the been that down coming collapsed. the have really as With couple maybe some economics shut expected been been It's offline before world saw greater incidents as demand to have of interesting period we of diesel. taken some storm would renewable Neil. that an the after U.S. or at see in are not the in than COVID, refineries back. that a sector, we -- rate being damage actually refining We refineries that around years were through Sure.

And Asia, are constraint so the happened last over capacity of or lot way we in a going is in of East had seen slowed some that primarily that the couple through in thing a of previously. we until And occurred down reduction or come Middle really a view the on other various were the of builds that years activity period we the a a of better And COVID. stages industry you new refining to haven't that time. in had during slowed how development,

unplanned some those or now. right have And system tight ease developments what these constraints. global in maintenance online that seen is Coast, we've things see to that we've runs like I some come eventually a in France price along, really up when the will seen of And sends on and to here as back from the try the you bring which events, you tighten some will West supplies strike into you when think signal that is But quickly. markets away. further see recently,

a that we're right back tightly it some of refining term, balanced doubt, of I think you supply bit my this where way, today. is it's And as overall in really next in to that quite we on entire And a complex think the historically the now so it And probably a and get longer into online, terms see probably finely then to degree. capacity situation But maybe if than not demand. year, tightness career as is market you haven't seen minus, some no in been. the short has come as little want little we the a to plus new I or stays more in balanced that call

come our question from next JPMorgan. Royall And with will John

range. more your buyback but and range, quarter is dividend top buyback In upside you perspective, your case thinking as than of to well both from strong to in an the still excess billion end billion. feels me a $XX of than XQ, flow did. repeatable Just about generated a at free XQ fundamental the the XQ $X maybe cash

it go is you have given quite question top $XX doesn't deleveraging think the extraordinary at seem you did. my you point in further end, at billion this happening as than good amount do could cycle, So the as the of a XQ still

year. of the end times last We of Yes. increased X this rate our announced John, at year. one we've actually the first buybacks

moved So up of up. and rate the range we've the steadily repurchases

terms the which and in you're maintain financial so repurchases. And of sheet. we're got rate right. an high of all-time share We've at strong balance strong of allows to flow cash priorities support right the us all And our now,

just I We're shareholders want that reemphasize not so that. cycle that procyclical. countercyclical. of they is And the not the see operate to that count would the cycle. can think program throughout maintain we out buyback across We I thing us know want we're to consistency the on and our

And we so we're to on confident our business we're regularly evolve. we can as commodity it a maintain reassess in that. and where positioned way continues markets view our And

And Pierre, and to so do of that we'll to that? add you anything further. apprise continue want you do anything to

our our point earlier year. first we just increased at years. rate dividend X% a growth been growing out that And compounded X% I'll We've our for annual this priority. financial is that dividend of XX

to sheet. growing traditional lot And it a but multiple years. buyback, for there's and sustaining of tension fourth said, do cycle to energy we maintaining after the as intend dividend, grow it's new businesses, So the our balance priority a both and on clearly Mike strong across the investing

looking I as think Great. may mentioned upstream, And remarks international well. then for have and bridge his just at Pierre in your

tailwind $XXX there? sustainable? country Or that You impact are should million this we think mix? about And tax. should from have think pieces an this Is about we other about as moving from there

world when the but that very benefit cargoes the out spot international a record around prices. lot are we're in of Australia, primarily It And quarter is happy that. cargoes the was at of the know which under high upstream, and was terms third primarily we In of contracts, needed long-term Gorgon see LNG to the time that market, a a again, included Wheatstone in energy.

stop fewer planned expect the for summer during hemisphere we southern is cargoes in the just fourth that just then in a you we do X how of LNG pit the signaled our -- of that because And we quarter So less. temperatures is facilities. produce have

In nature. terms can are items of in be that onetime tax items, those

those to not for necessarily repeating. so And I look would be

Fargo. from will question Read next come Wells Roger Our with

said, a on inflation ties the Permian. Maybe not and in the the to price but that non-op But portion little as inflation a sense, kind lower just ask question question bit curious productivity that got in just into of you Maybe on question broad more some it footprint mean challenging the global I a characterize those the discussion. is anybody. you CapEx to and you the as end you'd of how getting good when challenges come you've look a busier. start just some mitigate issues? becoming of that there across? as And I'm is as just --

to tell people Yes. plan work we Roger, like work the and -- plan. our I'd our

back for COVID, so And we've pre to indicated much pretty even COVID. -- on we is frankly, if you that stayed of with go trajectory right have interruption our the

And it, in you rigs, a completion longer-term providers that We people, commit have result tend for so can earlier, pipe, equipment, of and contracting crews, of and that. name our to to into terms we both availability cetera. sand, quality et in service visibility

In the strongest Permian that we constraints meaningful And digits inflation. less around seeing pressing. don't a the portfolio, constraints are parts cost low on of are Certainly, probably see probably and our cost quite is any little the pressures kind execute aren't see double of bit we into other to the we So our some as year-on-year. world, the program. ability the our

do I So as a a the probably you'll look very to governor, wrap planning year. year. on our to don't but as our get comes of And I little industry activity of and I see a it next that the up real, we ramp think capital want next is bit constraint it we it think pace out a and industry, call up into we in as guidance that

it's Permian, up but talking from I'll and point the this cyclical let a people seen of we've it. sands You'll part view, comment, it of And a In real. And decade seen yes, is about before. business, a earlier. them movie we've their this hear the very other it in oil in

on few that for Renewable Yes, we weeks RNG, question. sure. ago Follow-up here big a announced acquisition gas natural front. saw

You've the what's as the about California. look terms that's you as on And just at RNG LCFS federally the been the we I of the been leaders. updates should just extent in Any going of one of of the out well think business. come impact as in some was curious, of legislation in

setting to things leaseholds, acquisition this in is already terms call competitor on of be had the landfills and in -- you'd the of mentioned up. One company characterize you right, where I guess that you to was position just and where that it of stuff to and are relative kind want maybe where

a very got been a from we the customer. for position chain, through. We've We've the lot LCFS feel a in to a about of leveraging California farmers. We Sure. got good to choice are. of pull really market RNG, the leader strongest across value We've this. partner the a provides incentives strong feedstock where We're entire strengths strong brand dairy for where in

position So we are right the through progress XX got retail We've now CNG the that side. like sites we've in up. online built

as mover focused So gas. we opposed were to an our and we've preferentially on early landfill dairy efforts,

and are in want and of So there business we're it how today, intend our that. looks others to of it's things. certainly else further, into running, active I a to supplying are and I somebody but at banking planning kind up grow kind is mean and customers I would business it's on area. just that the not we future performing for don't comment on out us this well. today say, real

McDermott Our next Morgan with from question Devin will Stanley. come

first. a a consortium in that there at wanted look Gulf hydrogen ammonia New to and weeks few joined ago, I to a the project Energies So announcement And you with stick an Coast. was

little then next the New in passage, that. how Energies about bit a you the Inflation more was thinking And So opportunity platform over I you're broadly, with few if Act your years? in the set more detail talk Reduction wondering could around

Sure.

excited develop work So announcements we're of number with to good the Gulf the Coast. to hydrogen try opportunities really about a to on there partners

going see evolve value a these going would of collectively, chains no expertise the you're have as experience in to is to work things company build different think bring businesses bring people means all these who of customers, that parts can One to can entire I chains. chains. technology, that and in we partner of can can to we're they necessarily that, with value And build these but new one we're bring new have people different value have can that going New Energies to with venture

And many things, so all into in it's green there's lot of as days significant terms the on colors are early different possible opportunities hydrogen, it. investments. studying And these hydrogen, will that of we're you of down the a details of it blue get different require

partners there. So of investment on ahead opportunities, really business build perspectives you'll We've the just I would This that high-quality up we're it's I think develop working models on U.S. world, of well-informed it see in lot And are here around these we we got to that the efforts is more exciting. the to get not business ultimately, want working the with. But here. don't a the announced how They're and of here. ourselves

over you're little forward. going years, the record, further if talk Look acquisitions, over had landscape bit time. more details deal there New few the upstream, M&A to you you've great just consolidation. how the back REGI Energies the recently. last And question Great. could Wonder for on viewing second even is downstream about a in you actually seeing XXXX and a if and additional track more think Noble forward My

Sure, Devin.

different us. scan evergreen looking. where got we're of to that We've the interest an always we sectors So all are process

watch sectors, And opportunities. watch watch companies, so we we we

feel a a a had we've you well. strong done deals why a as deals. portfolio. we've say, done base We've out really are the turn which pretty is we like case. high strong we've And got to few likely Although got bar, only We've

unless And expect it deliver so what we don't we deal otherwise. need on to a to improves do really

value walked times say to very we're disciplined. continue going like a especially good few open the as years out We don't deals at it. We So times. a a like good are be when of deal I well done at times last to out assets this. our were from of chase when this, checkbook away pretty We've time. even sold rather ago just have than say, couple portfolio you would And are good an of

there's be time, likely the think some So to I more and over in oil consolidation. gas business,

these companies need could and But lot rather as question, at put happens been think some to cycle stronger businesses, because as that are to we're of activity, the pieces think where do things I the And fewer have combinations and normally find for Devin's a along. to top market probably going we the going see out at to explain together there's to than there out of you bottom to New active actually In pieces. building create nobody all come very the And anything, we're shareholders. all we at look a cycle. going if there's has to it's necessary we'll I You value be disciplined to together. the begin come those you Energies, of how you

Our of Leggate from with America. next Doug will question come Bank

go or Pierre, of one I've you Pierre Mike guys, I'll for to and got first. each maybe

you clear the price share all the cycle. high. breakeven the have think managing industry. to up of one think not we through an end pretty of your guys I So I best the But at, about of close -- ton is and is been Pierre, building in cash all-time probably buyback both a And I that still been your guess, you've you very agree

from and it just a you building last on So on What's situation, multiple a thing balance manage I'm to close the about going or almost had to whether be cash you M&A you I'm through it whether level? your shares how you that. projects low net to cyclical opportunity opportunistic, a to sheet. this curious debt the be think prevent at just parallel back balance X had being sheet buy curious,

for a track that of record. think time last years that increases, again, for XX goes the philosophy had itself, compounding at We've speaks Again, a years. and back X% dividend I XX long a

both on upstream growth second we traditional balance investments sheet. compounded. excess Our growing generate with acquisition. And in guidance biorenewable producer first it when production cash in We're the the that, diesel in largest our goes country of now our energy the X% new our to REGI is

clear net very debt our been is that That's stated XX% sheet. we've ratio between very balance still XX%. So a to strong

COVID, ratio recall, as we have many entered were and had a at at only that was $XX debt stress our that to XX. in have would our go you if If years into where company the X going net fact, we we Brent been peers showed test into the XXs COVID. low started But of would

over balance always sheet, a maintained think that But we're in the below cycle we've So that. appropriate that's range. and we well be to strong

under is debt net Our X%.

cash But appropriately be at higher function debt just our procyclical, in we ratio a of net strategy wanted the peg think just coming Absolutely, just cycle. to our a would larger to being not a we that's buyback shareholders not question level. could and I So have today. across that commitment program our if as

top across that us maintain of shares talking we're that the So We'll buyback cycle when buy correct. a back end been we've near to range at continue do level setting it the to allows prices the about. the

that major capital M&A, so There's on with of at don't any that transaction with of of acting terms risk we think use terms it kind or the do capacity price We've balance In we of M&A need equity we kind to of debt come will project, shown lot of all oil in sheets. any makes it likely. have in countercyclically, we all because to It a cash. very sense. do kinds

a using And have we've have addition XX-year lot but in the capacity projects, want oil equity shown of where great again, to we continues. our we some profile guidance X-year sense. a portfolio So growth deals but of makes to in a

We here been. to of great and more lot And We've by market. we've efficient have lowest The talked the ever is sustain for choose to than capital not cost and projects from. enterprise that. capital grow possible. the we're the We're a really paid about growth with goal

very rates, So said, And rates sheet appropriate think, in again, beyond more have if shown as we're for but interest that, the the the at we've next do and balance years. Mike of again, certainly the to X we our capability shareholders. growing we it's strong

the this to larger Mike, meeting today. in And I asked but you or earlier thoughts share curious put question the to your administration just challenge, the of have recently. would guess, you I'm some to I your with peer the care privilege of potential spot, hate you I if on you risks industry. your a whether curious feel Just thoughts of share And I'm guess, picture that beginning the to the standpoint big at level, might pendulum swing legislative you investor that that face is an I kind in that. any care if ESG may from favor? to back on

Sure, Doug.

is are and ability balancing parts play we're environmental And in including the to the energy energy as or the policymakers, look, to of administration, different what is tied of and economic affordable matter. that of to national production concerns energy of importance security those course, there of the all energy economics world very is X And about of today. talk protection. underpins in we with well. thrive. I then, prosperity and things Economic the energy use, meet when So the take seriously in impacts and economies environmental the those prosperity, those Reliable security, energy out we seeing about have

eventually, not in because that balance a if so And you one, appropriate they may X manifest for is of little the to those create you And over-index themselves there. policy policymakers be while, of can consider all and we to they're that message just the sure vulnerabilities but on do my materialize. unintended consequences

who a investors of about ground We common well. I'm that world with concerned as lot our share ground so things as a common governments with these we around are believer the these issues. we about And talk share

about talks our evolved so we've And a evolved. for the forever, XXXX. it has our written commitment environment. doing been And long commitment Spirit of society called And protecting to book the look, to a time. the ethos has Oil the was in desk this Standard people, talks about ESG company that it's my in and been it I keep on as

And so the a to here of and company we're around the responsible being part in world. being committed solution U.S. a and the

question Piper Todd Sandler. Ryan from next will Our come with

Could biofuels, one you're sustainable pretreatment biofuels pitching provide fuel. expectations, maybe aviation the the Maybe things your expanding a with liquid maybe towards question under on the particularly an market how REG you the liquid with side to belt? market. seeing of Europe little update follow-up your You're time relative biofuels acquisition in on Germany,

So Europe? how from out on between your is you How acquired facility playing see the maybe that Geismar to then And out relative the you diesel update of expectations? REG? progress playing any past issue the and U.S. the renewable do market

Sure.

that freight are all ramp on in across up. expectations. I'll costs. been The start West good, and We're and so little track network, identified the acquisition. Any Coast biodiesel to opportunities. or the the efforts and in far We've marketing are assets and with have wins, quick Integration people feedstocks delivering already better. We're commercial continues on system. surprises upside. Chevron's refining optimizing to placement are So the REG financing our lowered seeing of insurance the We've the

just on hydro in We as both indicated of other way fuels all spread companies see Bunge, bio that already day. do processing going combination expansion to And We're the strength our system. We've nice we're and really completed. that our into of underway, Geismar target to crush So and here. that's barrels our well in some fuels is a the where we builds feedstocks renewable as grow able XXX,XXX And to value to the halfway investing in renewable that. chain. working had got the we're The it run on We're course, of be venture on a to now relationships. joint capacity we're converting at participating refineries bringing to with soybean we're feedstocks. a

continue function time demand So on a and an that been grow feedstock in downstream to across of this far, supply be they've part a we the anything they're to is good it, like of the in so markets. part business cycle economics that portfolio. important will and out or expect into our the our costs, going of But

that, market and into may more that. from like may But familiar renewable long It's get business. those we're with any market seeing dynamics reflect other people our are diesel. times go traditional We at commodity a margins

one Mike. more. Maybe Thanks,

find but that on disappear the a little the of those product of home that decent Latin what see in a import out you to actually barrels how Europe ban product in speculative, any to Africa? think or Just Russian thoughts on product maybe flows? of you amount we play that from a likely terms a Or Are think may impact could Russian do market? America

where has be Any market. as of that's looked but these and the crude, export crude other the And yet Russian products -- broader necessarily. that buyers they bans it's U.S. Europe And the they're need hasn't participating And coming. in a of got the not global you've to Yes. within on need you seen -- we've as the at sanctions say, just have of import the context market. managed

the and those into you go got But system -- do to markets. that and into some continue you you likely it seen reoptimize? sure to overall of longer to to logistics particular, ban pressure there. around first now. Further, this about tight so think from moving move the products think tight you'll And business, see Diesel, of do you've that when do products effect into countries then, enough in are as does than here balances are less fuel. for be the winter, It's more I products a closer it going with earlier of the through in that which markets just markets, keep have we've way get efficient although you recently costs how set optimization to legs, get the stay we flow how to and the ships And comes the side continue and right markets going find the to and on Neil natural against a logistics that's need out think. the distant world going to to quarter shipping I pretty Europe. And the backdrop I question product increased

Herrmann will Exane. next Lucas with from question Our come

Two, if I might.

Pierre. you, for first The

whirlwind, of contribution of end the an environment, $X or guess us range, to there think taking I the tour Just around it's the little how That'd the towards Mike, you I'm of if give at one a terms are and the but level the the and current the thoughts of associate not And the within end in current remind date. might paid the then, on but just those I $X me, perhaps the top proceeding associate that just a own dividend be top beyond was in that's your billion great. give out whirlwind talk just indication indication your expect could And that us of been be portfolio to range, that you surprised the Gulf place are associate dividend developments could would billion? timing.

just and when clarify, Gulf Okay. Pierre you then I'll back, I'll Mexico ask of let start, come to or... I

no, Gulf Yes, Mexico. of Mexico. Gulf of Sorry,

Very good. Okay.

You're welcome talk both, Mike. about to

return quarter, be of reflects And top but Lucas, first the you're above we're was of year, to X earnings the increased year, items. the guiding we course that we range, all the the which dividend. end affiliate cash at right of LNG the really in that affiliate and last dividends the to end at during Angola half guided the the been line, capital income now a top of the has generating year. return and during the range,

cautious. is of the out more item a the CPC, And get second And at TCO statement. holding TCO. so appropriately cash. uncertainty is in just then flow up being think showing cash more cash given I We'll part TCO it's is, the of But different

we That be them barrels flowing. balances. November, flow. to repairs October, just of said, In higher and shortly. the being a Mike we completed holding cash As little all In all they're said, cautious expect are expect our to

So we'll billion $X affiliate be we're of at the XQ, top about end dividends. think I range of the at through

of in drivers will Angola cash we holding which LNG cash we'll of it's expect than primarily being see less bit larger a accounting can the But be you're confirm why that Roderick. dividends in you'd maybe them. terms that thing, of balances, a reason TCO expect, higher that line the and from flow income affiliate and future little seeing that, the with temporary the You quirks those X cash

got of leaseholders with the largest Gulf of Sale question. a strong importantly, oil of there in as of portfolio one the lot the base a know, XXX it's brownfield Mexico, COX most equivalent. over Okay. installed XXX in Lucas, business, capital-efficient carbon-efficient you of one We've and was of Gulf. infrastructure leases we're out in that per that is And about Lease the of assets one X kilograms intensity a carbon barrel development. our enables

that sale. encouraged participate clarified few months and Inflation to ago, as as a we'll indicated forward of look proceeding. government XX by federal the And up sale result leasing the is that's and Here those. the Act, by in that picked continued a Inflation lease leases Reduction Act, in we kind Reduction and We been of

for I on next partners, first drilling terms of development will Anchor to project. year. development Mad the our refer Bigfoot will and we you now. projects begin starts right underway waterflood additional an at operated project. this up plan In that project year are is has Malo, Dog St. multiphase greenfield growth, drilling. a our advance and of injection first in some X quarter ongoing new by pumping a production Malo number We've update them got of for year. St. one that that would that Jack and next a injection water has of

We one on in one that this on by oil on end I the of Whale, towards quarter FID partners. recently expect took of that first XXXX. and of on project expect Ballymore another oil greenfield project our that XXXX. expect the second oil And operated then we the year in first first in XXXX.

say, What you can sequentially of from growth hear are U.S. We there projects we that in the have? to I will oftentimes, else here in because got question can production Kazakhstan the the Permian. lined a see Mexico appreciate string do Gulf steadily well, people the deepwater deepwater. of see We've I contribute growth. out the of the So kind that

And will Biraj our RBC. with come Borkhataria question next from

got left, I've two please.

in and is one of My sort of the understanding capacity for back fortuitous Kazakhstan there's other been being the allowed lower. to flow Kazakhstan timing despite is projects which has offline, obviously First to going CPC. Tengiz just has Tengiz because one been

performed I is other if Then the pro understand, or to all So full to be trying And pipeline what any relates your be it not under up LNG say medium comes at sold portfolio your or back proportion do down we contracts? capacity, this capacity? extremely there second to you either what term? long-term as just is And to the projects the then hypothetically, over need Kazakh is production quarter. is there quirks portion question reduced portfolio, is LNG aware Or of Tengiz? the for was maintained but rata capacity get strong equally? sold of on a the basis, that on year is spot to full Can

Yes.

of right X single earlier moorings only point mentioned I now, is CPC, at the that operational. X So

are down that's X and work for other underway. well The maintenance some repair

to move didn't when to reason were out the here capacity CPC to long. about for on X work would be that completed we before expect that of so can to constrained some has happen, and too CPC SPM, full. and the what XX% operating And to flows we full be handle able it's If load that

many constraints into most in the movements. be the line that that's disadvantaged, underway. all be some sort would proration me long the not TCO positioned get TCO of there barrels, on some the were some to of well say been I So but the let that, reflected shipper able has largest there I think don't details, we would initial, not maybe would ways be to important but to of be and want in practices on and that barrels, still our if I think flow

nomination place repaired. November. full already the situation again, in just put and for a add CPC not are Tengiz SPMs November I'll been the for got essentially if even in for a that TCO even have And nominations that's

down Of course, fine but TCO for if by already they even repaired if a they're nomination. received stay November, then, full issue, has

operations. On LNG both West a Africa of the around XX% notionally our Australia operations and question our combination LNG it's Biraj, XX% of That's contracted, spot.

to almost all and be Australia to spot is tends Africa West Our closer XX-XX.

to out are out both fourth many It averages end about spot that of And on do Australia spot our call we'll and the quarter how at give sensitivity. the January. West cargoes again, on of, produced, that XX-XX. price So our We'll operations. depends in guidance Africa

SocGen. from question And Himona with come Irene our next will

outlook strong or Congratulations financial your rather is that results. the on to very partly the same current first because through My manage a fears clearly the is uncertainty the framework commodity question, of on But risks the of at price extreme, time, and the is recession. cycle.

So any look an question a or would which economic might which the more slowdown businesses, you to in and Downstream growth? of is, Asia, whether my at you ahead some have as concern cause seen your signs U.S. XXXX you as approach look you drive CapEx conservative to perhaps

pretty globally the thanks. across Demand strong Irene, product. remains Yes,

as softness prices has which Now the Certainly, a that. there demand the there. third had and and around people been aviation quite again prices been Coast, some higher are in some of coming are steadily has little but variations that. And not the pre-COVID reflected a maybe demand quarter, given world, issues seeing. pretty to to yet, U.S. in flying little those West increasing. steadily refining some they're bit strong that gasoline Diesel so We the lockdowns in levels of saw less demand responsive China, back

recession that demand product is date signal say is I underway the strong so wouldn't that economy that is significantly sending slowing. a seen And we've a that overall, to or

said, maybe yet, seeing no, there's kind regional some or that always As we're sectoral really I But of Irene. unique characteristics. not

back last us understand help some the supplementary less have year? perhaps try is that more work halved to given half what the Does costs, incentive of last the and go the reduce I create can technology to on it value question, the was on any, your R&D. My gas, over I please. if can prices if if you renewable LCSS natural the impact, more to wonder year. or it own pressures

Sure.

second. businesses, the me finding of set always become to let So and costs reducing for aside efficient. Downstream and our technology every ways incentive on a we're one improving more In working

inherent that's California, LCFS scheme. credits, dynamics our trading credits around so RINs, ABXX in the in The And EU business.

manage correlated that inventories we physical the things, have down and their but through supply-demand these of of whether drawing of a or business or credits. you drive not necessarily part fundamental credits to inventories allocations because credits have to flows our it's And related of All these building are government dynamics that is to own people cycles.

the And in structure you And those in rely something see business. we've the managing that value so fair like that. bit with Certainly, correlate on they underlying commodity. don't got RNG economics in little the the if And that amount a businesses. necessarily starts experience framework of and on the the margin that declining credits regulatory incentivized a to it of erode credit

long-term on is the view supply targets. more suggests they take regulators to ambitious is credits, have think We that and the can And advancing, that as in set these length advancing do credit things. they a the the of I same. reflect technology And lot see values a

good things managing environment. And over these And people that pretty have so a track of in evolve think our record time. I

last And question with Cheng comes our Scotiabank. Paul from

and Mike each. question one Pierre, for

a what's First we the they your Downstream, one. in past earning chemical about talk sequentially, talking simple are down. is up or presentation, In whether you're when the about

this means which drop that in surprising flat, is industry. earnings chemical at your the time. in presentation actually relatively much that mention seen is margin we've the didn't You Does is how given

first the question. that's So

pretty what don't been operation, really their for LNG table. least Second cash much aggressive grow is to elaborate Mike, Can you LNG. that you peers or have time question have have medium- strategy. you longer-term at in LNG on longer-term your growing of to flow most -- is operation, least possible strategy the on your very very at but maybe LNG longer-term that in the rich

lower polyethylene Sure, on chemicals, higher quickly a ethane a little And were Yes, prices. prices had quarter-on-quarter. lower margins. that's We of function really earnings Paul. bit and

And so our the largest the driver is olefins performance were which margins, of squeezed.

Russian in markets market sequentially. Japan, customers pipe Basin, Taiwan and The less down long But go you the a resource given did and were in Atlantic Europe we've we've exposure just LNG to strategy, favored it with got our were Basin, it. has position the where attractive. Pacific. been competing best the Korea, So Pacific On traditionally gas

Eastern we're that into looked would acquired see that advancing now changes of markets. we to can global of Mediterranean Coast Atlantic done And markets, us in other deals Leviathan supply then global that LNG exposure things. Noble will we're potentially expansion being at in move allow markets. that and field that We've Basin that increasing give the Gulf projects a the assets with with We've provide go that LNG. into projects With offtake the the can an we couple were to are developed acquisition, the

has in been opportunities So We certainly the everything that opportunity. compete portfolio. investment in Like the We're in against at, evaluating deeply cutter. big were process LNG our capital has other look involved that some could. and to we underway we to over that going in invest And we We're on in going can. to include we stay the LNG that best everything very invest won't things projects I will expect disciplined that time.

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

concludes Earnings Quarter This Chevron's Conference. XXXX Third

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