Chevron (CVX) 27 Jan 232022 Q4 Earnings call transcript

Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's Fourth Quarter 2022 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. reminder, is a recorded. As Instructions] this being conference [Operator

go to the Manager Corporation, I Please, turn over Mr. the Green. Chevron will now of conference General Relations of Roderick ahead. Investor

Chevron's fourth you, and I'm Green, Roderick Welcome Relations. Thank Manager Investor quarter webcast. of Katie. General earnings conference XXXX call to

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

in I who March today incoming over couple General each Investor pleasure last and your Relations, Thank the Chevron. the X. together is effective Manager two working over position Spiering, will you be for Jake in feedback this the listening of questions, investment Also been assume transitioning months. with will Jake my years. you of next of It's sincere and

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

Before two. reminded we contains statement and other this the statements. estimates, on projections presentation cautionary begin, Please review be forward-looking slide that please

to I over Now, turn will it Mike.

today. for carbon businesses. performance, Thank producing lower energy advancing you, financial Roderick, and outstanding us more record everyone, and traditional joining in Chevron delivering an thanks, XXXX, year had

Free than beating X% a US billion, by double-digit was high Permian. our dividend the cash of strong $XX buyback and also increase the enabling highest of XXXX by our stood ever, led flow almost a in record, shares. our more production previous growth in

we delivering businesses. And capital XX% energy that shows results. on important building over efficiency Return employed matters when it's is on profitable. Growth our focus steps capital new took in

acquired and Australia. in pore for into and We And technical the commercial best to successfully combining of space Chevron, we companies' assets capture and Texas storage integrated carbon people both capabilities. potential projects and REG's rights

gas of field a TCO, end Management year, the low Focus begin by largely transition had system. year, Wellhead of of to construction from last fuel Pressure is the starting we're name highlights to is We up commissioning on pressure. this start-up few, the to other and at just complete, and Project project high many the

growing announced ethylene position CPChem We the Egypt, Qatar. Med. offshore our in Eastern and natural gas gas world-scale build on for affiliate projects derivative new significant and in Texas two our a discovery reached FID which could And

macroeconomic around time. XXXX globe. disrupting was forces These affordable unique events with the dynamic and of the of industries geopolitical remind economies and carbon and lower with energy year, over intensity us a importance a reliable

know I do safely don't know Chevron's in We and capital, consistent, and on carbon. lower higher discipline, to and the operational ahead XXXX. be will returns approach focused that objective with what's clear cost deliver

over With to that, Pierre turn our it discuss to financials. I'll

fourth per Adjusted quarter segment, in be presentation. write-offs found Mike. Included in billion currency this and of $XXX foreign or Thanks, billion We reconciliation reported and $X.XX our non-GAAP appendix measures earnings share. or $X.X were the international $X.XX were quarter $X.X share. the over negative million. of effects in in to A $X.X upstream billion impairments earnings per can

billion was less year resulted flow $XX cash cash operating in and billion other operating flows XXXX. capital continued cash of $XX with than Free The of free year in record. cash flow that Chevron's only in efficiency, XX% in this was Record over year's XXXX. combination exceeded flow

annual increase the despite XXth its results investing cost its Chevron be Announcing within year to dividend dividend organic of this outstanding In increases, XXXX all in positioning financial another week four payout budget share, priorities. delivered earlier XXXX, per X% consecutive on with inflation. our

repurchase with $XX ending in exiting X% the debt totaled energy rate XX% with billion through CapEx ratio, quarter billion. returning down Paying of net a and to and year new annual an the shareholders record annual every nearly investments. $X.X year Inorganic for cash debt buybacks

authorized repurchase program. Two Directors billion $XX new days of a ago, Chevron's share Board

on back a prior programs. is time to look Now good execution our the of

shares back done bought average we every decades, two below during to it nearly And years, billion price than the more in three whole more shareholders. $XX four the we've than of out period. past market returning the Over time

Going same, reasonable Brent steady a price program, in across of cash With price forward shares cycles. and and positioned a our dividend capacity, per excess breakeven balance intent to to return with with be our commodity our buyer is scenario. around the barrel oil the we're new $XX CapEx sheet more shareholders cover to any

decreased to effects primarily were liftings Adjusted downstream turnarounds. quarter well volumes following refining exploration on partially $X and partially margins primarily with billion offset expense, realizations last and earnings Adjusted upstream down the earnings nearly compared quarter. as and as on timing by Adjusted decreased Turning higher with quarter. lower higher third chemicals effects. lower offset timing favorable earnings negative sales

The Other compensation. to accruals charges for segment mainly due increased stock-based

year, the to earnings increased by royalties offset and costs. $XX earnings up benefits and realizations. than adjusted For higher full Other lower maintenance earnings prior more Adjusted adjusted items billion increased higher partially prices, other primarily year. compared turnaround production to items. primarily the were Downstream higher to offset due margins, due increased partially expenses, earnings incremental refining to exploration tax higher higher due and and upstream favorable by taxes chemical include

was production in for XXXX higher with line prices. adjusting after guidance

additions when nearly actual reminder, Canada As the and higher replacement Reserves largest assumed XXX% the guidance. are under was with in ratio of net a Israel, the Permian, international Gulf production share in prices is Chevron's of our certain lower than Mexico. contracts

our of expected $XX the of Brent. our XXXX million of and asset Ford and production to lowered barrels to proved by adjusting other sale grow We Permian X% expect Thailand, exceeding at oil After the up XXX production expiration changes, guidance. for prices by shale production assets. the prices in tight reserves confident long-term over primarily remain is equivalent. and in share flat lower be of Eagle portfolio led to our a we and contract Higher

outlook, on expect I'll XXXX, few quarter Segundo. losses Full out current to due this year other interest refineries. we settlement higher for California lower income pension is mostly to our items natural such Earnings El expected items. from special again for excludes costs the costs. first gas are refinery year ahead and a by segment estimates Looking call turnarounds higher driven Based all guidance as

The vary can We depending $X affiliate margins. billion, and quarter-to-quarter on between and $X annual is $X expected billion. prices between The All primarily and difference dividends billion year-to-year. be than earnings and dividends Other commodity estimate affiliate less to segment

sales. expect the top do not We expect buybacks during oil-linked sensitivities. quarter. first About we end relates a maintain guidance share in our Also, to Brent at We XX% the range dividend quarter. the earnings first TCO the from LNG our to of of updated sensitivity

our accounting, a only receive year will or Venezuela, We reminder Investor confident month. future, safely Chevron as in was which look We cost during Day objective record deliver ways. record a if and lower returns do more we to we earnings, strategy to consistent a forward in next Finally, share with many we means record cash. production our not carbon. affiliate XXXX higher for use reserves. the in We'll

Back to you, Roderick.

concludes prepared our That remarks.

ready open take to to one do We to the follow-up. Please questions. yourself question Katie, We'll questions get one are limit lines. try our answered. please and your all to now your best

with comes Instructions] first [Operator you. question Thank from Barclays. Jeanine Wai Our

our Hi. questions. Good for everyone. morning, taking Thanks

Jeanine. morning, Good

and like to Before – your and all morning, Mike. over position, time we the years. past Roderick wish really his started new we help get good appreciate We'd two in well hi,

very you much. So thank

steady up week, a on comment is your buyer Board the heading the prior shares date? $XX maybe timing question, expiration wanting authorized choice to Can the to just the expiration on getting comments prior four-year authorization more billion, This of authorization date, did your across an had large to date. decision-making versus be return shareholders. and authorization buyback topic. first to for open process versus authorization you're that We leave buyback the have towards authorization that pretty billion the Our that no maybe which a $XX you positioned cycles to the and expiration cash to in the heard

forward and start, our we've have of saw on Pierre add slide I'll programs. the back the of market cash-generating sheet. balance as volume year. of color. that We And the past don't at the me average decision to shares look let for time. strength last we the over market the environment, the the bought a portfolio, of Jeanine, than potential bit And at of be authorizing program little going lower in information the want of weighted XX every included little the outlook years, period on XX call We looking Yeah, back a context you the this then a

So, we multiyear Board the a to talk outlook. about

only We steady, think done to is the consistent So, this. our and annualize and not you're trying sort ourselves way for of this. track do date an significant it record end there's speaks if the we've that math on that fact some

we're now rate an rate as with the And we the year high saw situation and times three of so, last evolve, increased the all-time repurchases. we at

but our I'll to thing cycle. repeat it, in program last the So, sized it, you commodity through said the maintain

countercyclical. not the We're Pierre, through pro-cyclical. aren't intention. We're is that want add do to We anything? you the cycle, steady and

Yes, Jeanine.

from authorization XXXX second to also consumed in be It was going open. quarter. the the was So,

have it. We defined period. will did a not time -- So, it consumed just have

of again period, on middle of open authorization quarter's So, quarter, an had the buybacks having instead in an new authorization, we'll the April and XXXX the we'll time start which then the under complete this Xst.

the in was is time. it done similar So, prior the way it

we time was five for your that. reserve clarification. ratio XXXX that think it We again, for that our years XX%. around before average of And on to I appreciate for ratio, year, believe last XX% that compared XXX% and question, Maybe you was it's that. Thank second replacement year then the

do is -- under And our XXX%. guess the over you. So, you how bogey question time? see ratio for Thank just this probably is you over I trending or

Yes.

a take reasons, sell given So, actions either any year, decisions, it of in move right? that buy. whole host Prices, portfolio we FID for or Jeanine to can

number numbers, attention that pay so, that to one-year is to. longer will The the move you around. the And cycle ought one one

We position we Permian we forward. have to can years book as also, only Remember five continue this develop. in large the

out And that. on the so, of year, produce end we'll unconventional another back year's we'll assets, add of of reserves each the worth and

were of the This Kazakhstan different Pierre to were year, Permian and this contract net and Permian the by of at effect and And additions a year so, to Mexico, we terms due if prices. largest have the look reduction the you'd Canada Gulf the unconstrained mentioned, Israel the in higher you and some as very had that, view.

out, ex effect. the -- mentioned price where so be that it as were effect we adjust you XXX think to price would of barrels million this actually year the If XXX%

this so, expect you and over might to we over I business number a see any intend to But years, in think year in a while see greater ought you different. to short time, something quite or that little bit that or looks given for time. And is any of be do number XXX% a

take We'll Stanley. from question with our Devin McDermott next Morgan

question. my taking for Thanks morning. good Hey

to the wanted years I Roderick, echo [ph] all, working the over on help of and all thank Jeanine, role you great with First you. for congrats new the and

the it's the So to on upstream. finish TCO see be I to line project wanted exciting And good focus on and progress continued getting on close in to the there. to expansion

I for affiliate you year. WPMP that 'XX first that expectations get run expansion, the spending commissioning about And CapEx and changes noted how latest start-up both of just dividends is And Trying also, is think You then FGP. second the projects just to that through this track also in the wanted to could us and later part 'XX? 'XX. that to and impacts sense for rate FGP on back, still volumes affiliate just come of on walk for track your on a the TCO production, both then on stepping as confirm then you post online. these versus

talk the Pierre let talk Devin, Yes. little I'll a and to to financials. the bit project

begin WPMP power running in a and built All days. grid is back everything and We've We've the grid cost the central guidance. one no comes early is in fuel schedule new capacity production gas into the on an all, start-up GTGs, which Soviet done, other room utilities. powering the the this beginning up a injection next by got to in now three the first are a of milestone gas The system change toward of power the to generation the generator, gas important test steam In up tie electrical and first got running, this of work control where First up facility really is few year. just commissioning. the to commissioning of lot and process or boilers, days, gas room. a we'll trending turbine injection end wells and done. of is was control the

field the the to by here then compressors the all in low year. end period that the of third So, beginning commissioning converting pressure boost leads the sequentially happens from time, over high from next of and the quarter pressure conversion which to the

of things year KTL. two of that We quarter. turnarounds processing them. had are planned on the planned got that production. five We've third two the A in the turnarounds old will of trains. bear There's called They're couple this

So a period time. come production on those resume get may then will system. be as two up, those some down we back not to wells of those of for the And fully until low-pressure as flowing the recover won't

half you'll year, of a bit see that impact. back the little of So,

And then 'XX, more of start-up in and conversions as pressure half we we've move field these 'XX. high first low-pressure into of FGP got we've the got to

that partial effect ramping 'XX, So you you will through, don't full then will of in effect Cash follow the effect in get show 'XX. of see FGP full the roll pattern. in and kind

and talk you maybe CapEx dividends. Pierre, So on the pattern about can

Yes.

little that last due TCO during course CapEx the held year included We was up are going now. to our that which we received $X has what The total December TCO that just a we For dividends the release. cash excess dividends on in indicate guidance right our billion, in $X last uncertainties year. of included from billion, provided, the XXXX, are is did

of billion. roll to half off affiliate $X that nearly to year. -- of you expect CapEx, $X.X that’s would it's billion the So next so continue Again,

in the out we back our that's of of And back free We'll form Day, years form a we of XXX% flow. will up, in the flow $XX to if plus the when the in $XX Investor provide production, $XX And of you takeaway, FGP said that this on starts we'll ups would billion. TCO loans again, see Day. see for a cash that We'll we've basis investing full and a the for through project then as of TCO. long normally we lot updates showed COVID, six the Brent. paying further be and it cash as Brent a in time, through been go start-up that now post it Investor into at year we've dividends, do free downs, on of that coming generate that co-lend some But

all Day final put described, of last showed stuff this kind to fully Xx we just I XXXX. In once punctuation the a free of cash Devin, versus that. year, of side in on just expansion we a so get TCO Investor XXXX, on out our other in flow

So it's meaningful.

much Okay. XXXX the more for Great. you very answer helpful about And there. thinking Thank this in year, detail.

year. move some we And whether or broadly can XXXX, X% there, in the asset that growth Permian. talk you then You upper year, the talked about that to X% led in to X% the Permian more XX%. within through X% total activity not wondering one end sale adding last trends? expectations what year, if you're up to range, are for could the were was through volumes strong had I for the unit just you that as rigs move lower the overall And or production another by drivers of for your

finish second is I production, and was Yes. overall the question -- Maybe Permian. on about think first about the I'll

that outlook and XXXX X%, XXXX to XXXX plans our we up X of that to downtime, deferrals So XXXX barrels like modest things There's shifted some and couple project between that relative Mad at flat A for Dog would got day. some Investor now in XXXX. which start thought up We've to guidance. post X.X startup. a like from driving X, that, our is Day looks downtime $XX million a million a so adjustment

XXXX, DUCs XXXX. had would that One, And lot boost of bit in be came couple been early that in in production of it little a A the and online prior a bit had XXXX, we then of benefit sitting things. growth a our Permian more. lower little

or in also And laterals interactions do some of wells things some then factor learn the we single development. multi-bench are development and we relative benches, our to space continue we re-optimizing of between to and plans to how

bit. plan will pace have bench more all moves few a and rig few of our single a targets, that deeper which little So a revised down more brings some developments,

behind stop the see as more the highest of that. that's We'll about part you level, we what month at And a maybe production there, because I So numbers. that guys kind when I'll cover Permian did talk in is here. of the

question. us? we go hear you Katie, Devin. Thanks, can the can Katie, next

We'll our take next from Mehta Goldman question with Neil Sachs.

position? can is Yes. Good first on a you around And morning maybe how Mike, I spot have on in how There's talk team and remind gas here about market. amount Eastern year. have I Med. for congrats gas. good you you're the well and a then positioned versus of Hey, tremendous seeing the the contracted I question guess you're obviously global volatility as again And a a from us follow-up been

year Okay. Well, XXXX, as as Europe, the certainly into milder this demand as a less a And several outlook have high typical. seen like which months has year winter northern is build of is reduction looked resulted and we've for that seen level, successful volatile dire settled primarily the ago. come economies, have here hemisphere the have an very unusual European and we than in of the inventories industrial out in in in it bit winter, than for both we've may the

think market that. all I reflects of the so And

economy has to looks You that have been be the year, has is -- China also fact around. the turning slow been the which -- throughout

really think see moderate not we these there we have a out mean I enter as good I of are I hope stay that creating calmed. prices stresses more markets so range were that And high prices it's a the in lot And good. XXXX.

spot primarily has we've we've piece, a that things exposure so and record think year, -- pricing, some we number the as of well I us out on contracted and now we're assumptions we've reiterated as the today Australia, Australia. We on prices. is really biggest in largely based Africa, primarily Australia of cargoes some sensitivities, out you described And oil-linked. Guinea ran Pierre out of in there posture with should and Angola of have those a model Equatorial got little help gas guidance of were before, in there, spot cargoes more last obviously, your on these of out we've think put But mix oil got it do that Our as index some well. in West

Thanks, that's follow-up. Mike. And the

a Leviathan the and Mediterranean, in well. some large as and with Tamar position out following noble have the gas acquisition Eastern You discoveries there

So you terms how in that And how about prosecuting think Where it of fall can do prioritization? asset? it be? does big

Yes. took FID X.X a on It's basis, year Bcf last We to of from project a high day. Tamar on the to expand X.X -- at XXX% priority. end a per

The first in on online XXXX. should that gas early come

this to Nargis on Those to a high-quality intend we this working options narrow expand are but We point, year reach at later on in that should decisions still are significant gas-bearing that. how the do discovery, well of it sandstone. development one of and just terms and it's worked we Leviathan. encountered concepts section being some The

talking attractive. and our So concepts We're partner follow. to very that there will about appraisal development

about forward. of So of got go any yet number we've we've put a got that you'll we blocks seismic developing hear the we're exploration in but further that Mediterranean and into plans the -- we've and to exploration wells more as west that our region and course, additional not

a it's priority. So high

to regionally to both try that also Middle Europe. gas, obviously then get East, the gas in needs region into options The but

optimistic additional so advantageous of and from noble the prospectivity these we're that And acquisition blocks. of some the was exploration standpoint, really about

Mike. Stay well. tuned. Very Thanks,

Neil. you, Thank Okay.

America. next Bank Leggate take of question with We'll from our Doug

also thanks. I'd Well, thanks, everyone. Roderick, to on my like pass

the I point? you Is go Relations. about wonder Investor bit about buyback. to just does comment your to really want Chevron I the about little think the try management I a dividend Thank for really transformed you buyback. purpose Guys, around back all at how understand this if and could the You've help. this just of

this oil the you sensitivity Brent dividend breakeven seems you managing about high puts on is just your I'm price. Because future And wondering if confidence of at the about $XX in end to us about if value take your growth. range run that, rate into or it a the account,

you dividends. clear load Well, let not -- do me on absolute reason is not try be buybacks to to Doug. this, We that a an would do It's dividend outcome. Dividend buybacks. manage do

in decision, prices, long, at Our mid-cycle confidence dividend a and ability free decision. expresses long-term it flow growth the long, grow is long-term to a cash

now. dividend great We years since the the payout row the increased haven't depression. we've cut mentioned, XX Pierre in a

are in different. capacity, got generate we're that flow, significant going we free sheet excess the Buybacks current signal which cash commodity have we've excess where confidence cycle. capacity balance to They

satisfy commitments to got through manner plans in And grow that strong the back flows as disciplined sheet, buy balance shares then the cash our the on our maintain and we dividend, reinvestment free capacity a cycle. to we've

a An absolute but outcome driver. not of it's buybacks the is lower dividend,

And in increase should confusion increases, whether confidence. don't have no -- want so, about that. dividend we our back We the or dividend that confidence We've there not. if I be got shares buying wouldn't we're didn't

manner. are so And the in linked that not two

Thanks, clear. shape, so Analyst Day made the but bit in My sheet very month to balance But go your a terrific That's a away, obviously. I'm -- is give is unfair, anyway. point your -- a this given going you in if follow-up is Mike.

But if doing is the that billion breakeven, a also, of sort taking $XX a $XX to got rate, $XXX run there. capacity million to that it lot and go adding back I all of year I'm $XX You've breakeven, $XX.

until end That seem to outlook that the month, What maybe stepping say $XX growth for end that the going of the the your we number capital? forward. the of it, capital probably of would or what should does for February? Is is the that billion expect right think the at should we to growth up about CapEx way wait imply about

than I I'm followed annual billion growing. demand it growing the which We a compound growing is. for for February. well gas, CapEx X% of that's $XX growing that mean, a than in talk about all billion oil overall not there, I Yes. but math oil your rate faster fast. we'll is had more $XX growth better we're in We're market to sure or at not

what are on focused cash growing flow. so, but we're returns And really and we production, is growing

can and we the works. cash And grow if flow, returns equation

And -- -- flow; end But month. the or the rate happy talk when month, be spending that so, at together can to we can of at the end cash we improve returns more next grow about at at. we're I we'll this but of the we're

so, of why And would production a ability that about and those don't outcome to It's not numbers know be question decisions. and I there the our do the goal.

Appreciate the answers. Really glad. See you soon. Thank you.

our with next John question take We'll from Royall JPMorgan.

Hi, guys.

Good morning, John.

morning. for my question. Good thanks taking And

just of question. kind on spin maybe So a Doug's

the balance to So But the X%, have. at think problem there how think realize a is I increasing where underlevered actually point mechanism of do by point yourself to a or with that is with X% buyback, to ever good that to generally you if be got leverage sheet get you that's want the the higher about be? where you and you is

Pierre. is I'll that. take This

mid-cycle And net debt what and guidance the is and short-term. much X%, conditions. the that's between to for you so happens ratio in said, be than that. And stronger we're at as Our XX% XX% we're

priorities. So very long Mike them time. We've for consistent has They're talked about simple. a our financial with been

pegged. four dividend are three We And just X%. of our increased the

of next billion. $XX We flat given the that at $XX of keeps CapEx guidance And billion. the we over buybacks have have budget a guidance the years. range CapEx XXXX top that of end several the We've

that's cash and were and are sheet. just gas swings flow commodity talking to will in moving things and short-term we margins, the And the prices in and prices because balance margins about So refining down. up go natural

long-term, the those over returned to flows cash be But will shareholders.

cycle. in the do is across so that way And it to we a steady want

the right? average don't decades has want nearly way, the track record And been shows As actually buy what the Mike to Our to been. be price that we've past below haven't, said, by two market we we pro-cyclical. over that able

So strong operations sheet the on yeah, is a how strong and balance margins depending we'll have intent be commodity and prices to, been. little our

time the then to Thanks, We've be to multiple there'll have XX% a buyback back off for balance now. maintain time, then shares. years will higher and at we'll sheet, where means the we'll it That across said John. buying cycle. correct period continue and could closer it cycle We're back XX% we But sizing rate over level to be a we'll the lever up shares guidance. back a that buying right

imagine I on that Pierre. was you, give update And hoping the an you Thank at seeing follow-up operationally on project. think come stands. you per ago now? called it that CPC maybe clear. where barrel. what of or terminal terminal then $X a that could or just discounts ago was few And a $X TCO right and a Very quarters you are the quarters two I out that's in I bit. type

operating? So discount And terminal how today? where that is is that

Yeah.

going on on the the There and So mornings. three two operational pipeline a last loading. There there is constraints on pipe. work more point the SPMs constraints in quarter are was are There today. of the work no relative All are throughput on to on and year, late single third All fourth that the the terminal. three done. there no probably than news was into was impact on the variety of issues

of things reliable. worried heard pipeline a the and last about that Despite lot was people year, very the

course less weeks than April. impacted was and few production was over XX,XXX a barrels Our March year. of day in the all the It a

And constraints. very don't running smoothly see now, any and so everything is we there

of was little the a Brent. plus $XX that $X In And discounts saw kind on $X $X in the some before a sanctions the Ukraine. now. dated or We're to like trading seeing below come of aftermath began, range to have bit of CPC. related it and was conflict We changes to $X. Discounts immediate minus

were they as to So is the as maybe CCO not not overall it price the levels, impact environment given relatively and but deep quite the strengthened at has pre-invasion afterwards. immediately muted. And way flat

with take Fargo. our from We'll Wells Read question Roger next

you. Good morning. Yeah. Thank

Good morning, Roger.

Hey, guys. good morning,

refined call product Just demand. it, at, let's looking

just high curious, about talked everybody's the just away then got what for comparison as your gas you're You as the on moving operating look you world, earlier. China curious, you across COVID there? year-over-year seeing positives base, from reopening. was expectations I'm a got and demand I look around we've

Yeah. there. or I'll fourth maybe XXXX Roger, levels, a touch gasoline just below X% quarter start Overall, of below of fourth Still XXXX. X% pre-pandemic demand, quarter

look of pre-COVID. pretty we're is at level, at flat the Jet diesel, still If you and below recovering still to demand from so recovering, versus kind pre-pandemic. highest flattish but

I to see on concern more there demand we again. that economy China's through does come increased that's think to why that really could return start level, markets as and pull these normal is a

intention. being much travel at their You've spending seen seen China that rebound you could long. one seen we've other out the global before scheduled in the higher the announcements air in We products. of international economies levels than world, And now firm about things of kind demand of see if that's we've see flights that for economy the around up and economy activity that and buoy and

the and certain some in of recession world. risk variables So, still there's things in clearly, are central the We're parts equation. slow to banks the still not tightening past of

related So direction two two there's biggest to probably biggest the economies, this in takes. the and the recovering a trend US. questions net-net, to some puts and continues with China But

over end from the range of things the were the the kind and to Investor big change a the at lot messaging to and the the guys, Always of of in recognize a November, comparisons about in so come than the to – overall Pierre, dinner and Day of that discussion right? I there DUC coming. bench developing a different how just in you're the But A sell-side was function when that of little following the the was way question we comments back Permian, year-over-year. follow-up Permian, changing more really kind

is any November, look is else with. messaging here at the it You – of end this there or something as the at from different

in Investor show nothing the No, different. at our the that were Again, we of Day. We'll range. middle

can was the quarter You fourth see number XXX.

was few drilling We that targets little plans strong. in and results as go So to times update we've had we'll that bench learning's, longer rig more that. said, XXXX, in Mike and all some a adjusted developments more to deeper and single a our moves and and

in is that obviously our all guidance. And included production

asset an It's advantage to returns of carbon. So in royalty delivers flow. big we'll a adapt free and that source higher large cash Permian. lower continue and It's It's learn a position. the

really over Mexico, few growth assets. Our five years [indiscernible], Permian, by next other flow of Gulf free cash is the driven a

cash remarkable can flow whole the it's whole asset it and to cash free that and And that at growing time rate flow an positive grow time. the free have do

So, consistent we it with you'll little flow we what a Investor the saying past. said and ebb but bit what as very will something Day, learn see at and more, what today in our we're

value, not production. point focused one just Roger, made of And returns the remain the questions, to emphasize to on and I earlier we on another

that so -- drives this. Thanks. all what is the of And that's

Himona We'll with next Societe General. question take our Irene from

very you Thank questions are related. much my which for taking both

I time. both ask same will at So, the

can the of strength, So, thinking sheet it to balance use about other M&A. course, firstly, is put be

How with timings, [ph] and the say, your disciplined been POTS Noble carbon? market current two, with very legacy in You've and do both gas Regi M&A see versus oil [ph]. you let's these low

low carbon in for your appetite the And Act Thank expansion then secondly, you. perhaps businesses, please? faster has changed IRA

Irene. you, Thank

We have need the do do M&A. to M&A. do we capacity So, to don't

And that so, deals. only we'll value-creating are deals do

I gas been What oil oil we've companies the that new You value have standpoint, market. a market price strengthen. given is energies might the strength with interestingly observe previously would seen in languishing contrast gas, from commodity traditional and and

companies there's of in the think some I the optimism And future. eyes other about

gas strength years right deal now wider on And companies so, when little versus the the maybe oil and is given couple a a our did bid/ask of ago. we spread

but like. the as that bit in and interest optimism may and In have rising kind kind well. froth out receiving little come A valuations the of of lower spacs market, they're some there carbon, with still rates of of

And out that so, be this those. in models a of there very have are got lot we thoughtful companies business there careful And space. evaluate and we'll as

all. them watch we So,

We will be to back have interesting. if talk to that's we you anything

Let of that doubt. to touch little more be a the technologies The IRA reduced accelerate then US. some There's IRA these what is no activity me cost ask to and Pierre improve. attractiveness to on technologies to The will investments in allows does be color. the it probably of add de-risked. and Hopefully,

of order than But the of at that change different decision. our want if economically effect does kind trajectory It those a that case, similar it's become like how policy through And perhaps doesn't which change bill investment of on viable. grab of into some effect. first to more our a a the build A incentives long-term with rather bag businesses. feed businesses we could necessarily that's kind second order view

the effects, reduce make getting developments, and capture us you've cost of investments some add technology important then technology energy, super to critical COX on cost for the just some other to of of And traditional permitting really down. critical scale, new seen new for energy,

one Mike So just as but it's element, helpful, it's said.

Irene Thanks,

our next Todd We'll Piper question take Ryan with Sandler. from

on ask couple if I downstream side. a Maybe could Thanks. the

First, lot be amongst looking especially about particularly in maintenance this of half year in refinery refiners. earlier the US, first the a the well been there's noise independent of above year, activity average to

first thoughts as maybe least maintenance. -- Chevron over quarter broadly, year that's XXXX in in heavy reasonably refining on to more seems And at markets for or this the a whether suggest tightness whole guidance course XXXX looks not of heavy. in see turnaround normal general year and light outlook Any XQ terms Your then you or activity refining of global XXXX? how terribly

-- that rescheduled replanned. would which just What during I mentioned plan of kind be We've across his to in are COVID you're a year. got the And is for turnaround this the El that typical the Pierre of pretty and really system. and see capacity One I COVID. markets is maintenance do FCC of nothing Yes. out the quarter Segundo other echoes had think But in US two was in year for things seeing of in activity. still year, turnaround comments. are deferred you first the say two, unusual of see there's our this some it's go at you

wave still to so of done reliability bit that system and get safety of And probably places regulatory a of needs bow reasons. for and there's a pushing through in some the activity

on that. be you And plans. speculation. to them talk I'll driving let some of about the companies' really other so I comment could can't that

Okay. And then clearly maybe on been while. little the other the side last of your downstream business for on it's the weeks chemical side,

moving here, you keep Looking weaker do prices the impact is natural the oversupply throughout forward how year? XXXX, having any gas the lower throughout margins or things reopening China that anticipate see and on of from you of combination

cycles These part, tend most to be the for period long Ryan.

that's so, generally positive. growth economic But And development and lower come in or at is margin, think and slide part a China you the the of don't quickly don't of you into easily. it I or the out cycle quickly easily,

time. So these period over of a things longer track

here, don't kind along bumping that over -- the steep And we're I know a we're feels it as there's a so, near time. bottom of think out I to do climb but like opposed climb gradual

Thank you. next our take with We'll question Jason Cowen. Gabelman from

billion, my you for first it I due like that Is Thanks $X it higher actually oil step to of this you to stays up affiliate the off is $X price billion until was or that can stable the expect assuming and TCO having follow taking kind year? after on starts until project starts up something FGP questions. maintain year-over-year, fall to to morning. guidance excess that taking would wanted distribution because a TCO cash. up sounds Good

in you to from ability is production standpoint Can on have the what boots you're just a Thanks. on ramp the of discuss the that? the terms And different in I infrastructure again. then you participate my question of believe topic, health the Chevron's desire Venezuela. ground there, seeing now to there and second

year last On the year. dividends, are there affiliate is why higher than this two guidance main factors

them on last TCO, not You hit cash of year. held one excess

one big second Angola is LNG. The

return lot a have equity their equity distributions recall, accounting whether or of book book you It's in an now, actually concept to they're or to tied capital. positive cash not were space. that You

if one the different in in up cash up cash the most, Angola other ops, cash was in from to that's either So we from flow characterized cash just all, It part shows statement, dividends. but shows of of driver. expect coming the XXXX one LNG a the not second be as way. It's

And kind this curve the in of notionally futures direction, terms I at the current mean, $XX. of around guidance is --

depends in about But there, the right. margins. some on and obviously, I chemicals, commodity in up, we are it TCO. talked there. heading There mean, So prices TCO's affiliates downstream

have during expect the again, comes out down and that we we production CapEx comes years. TCO expect several back more And we then pay of As loan up, forward. going next the TCO also dividends to

Yes, to different PDVSA boots ground. Venezuela, more we Jason, boots opened on these on The people our could with could did in shift just limited do. It's there. has some policy work very in companies and We up in a of they the where sanctions mixed to us into have what were always room. go little allowed put roles those the

have some have of ability a involvement do to in So making. decision we and more the little influence

about things that, been in a investments of number there's time lack question years reflects it Your the of and state infrastructure, turn will the the a for of around. there to for infrastructure take

since XX,XXX the We a seen have positive license day in They're these some change in that up producing terms. in. now, about day saw which production we already a the about involved response we're barrels is entities barrels XX,XXX

can you been to today. extrapolate a not effect. but we say I'm short-term going that's are So good that, where it's

production, anything. the too guide work early ground continuing on to to but to We expand to are it's

of delivering got Gulf Coast. the the We've oil We're our We're Refinery. of also other series on Pascagoula going to to obligations. cargoes go expenses revenues other into and lifting to cargoes the US. bringing channels to a then couple and customers be it And into structured a pay coming

standpoint, affiliate On we're cost the accounting. accounting using

say we'll cash. at modest. if So would record are to this cash earnings point, receive we only expected And I the flows be

is into to environment. and It's dynamic a this So in step-wise environment change it's the there. go it a a We're thoughtfully. six-month license, going

we as and continue advise learn evolve. things as we'll you to more So

for Great. Thanks a lot the detail.

bet. You

Research next Margolin Wolfe question our with from Sam We’ll take

Thank morning. good Hey, you.

Sam. morning, Good

conversation activity Rockies just there where today. and you tightness that production The depth I'll a little bit good. broader some of sort Is a flowing the ask in could are XX inventory be resource bit levels, the activity topics infrastructure the the place all extra Permian overall may about And sort maybe there that these and without but a the interesting. I is It's context focus. of the face is where theme Lower in a pressures of Rockies of aggregate Rockies. inflationary your little into around broader place to the ask and your add depth of of and

absolutely, ended We plan year, frac frac in this year and there. got acres rigs net Last for the working level. out activity year with one three the rig XXX,XXX started Yes, Sam. with two over crew. We is that and one we crews and

in been terms it's of there. a expectations positive movement So and activity production

this with future questions lot It's into about areas really resource. grid. off There's resource. permits done work and It's low closely got under been well got there. we the of -- a some development and this the It's carbon to out authorities continue the permitting a plans, been in is There's that a powered large nice a we've past. the

can gets we talk about addition Med Investor a one Day. our the a at out but positive very Noble more to it's -- DJ. we're portfolio part a attention, of So about It's little and of Eastern the of bit lot really excited

some getting frame is you think Day, But overall to just the you portfolio it I that Gulf against and can yes, to follow-up. and at obviously, of kind there sure. now it your and the getting around up attention. answer tight, get just you this a the a between add the Analyst long-term I'm size speak resource But other final over right see trends pace gas extends. we'll aggregate the and all portfolio in Med where a the surmise I to And -- way of reserve because Okay. of maybe what activity are mean, tail numbers Mexico, today as production can resource of just number shale kind how and Eastern organic attention and

with Yes. work have you. Roderick I might

growth portfolio. press on years. next confident on the our size to and clear rate five in things the But exceed how relative over get we to compound we're the very we we're to to release today Investor So annual our Day that the said when we're compare question X% going

you can't You in we a pace. you that portfolio, depth projects have. And do along on quality which unless get good got moving they're the

the assure that, that so case. you is I'll And

Investor more chance kind at of Day, our folks. and into We a deeper will with to have talk about go you'll this it

Research. with Sankey Paul from question next our Sankey take We'll

But the billion Hi. Good very I guidance that surprised Mike, bit buyback you'll be morning, your the a by best. was that, everyone and announcement. all has Obviously, in the within year probably remained $XX that there are is political $X that billion -- seems you Is it a it to the up, of Roderick, congratulations, splashy. is the would cause billion guidance. QX on to Thanks. this or based a conscious lot And were range a step authorization? five-year expecting $XX that you backlash? major

Yes.

not it's So, cases in decades. our past Pierre our -- is XXXX maintain actually being question nearly cycle. of our a and the Investor from two it It's earlier, across downside over to upside market with the with intent five-year consistent the I'll track in just the answered the market Day It's aligned buying record below our the steadily authorization. $X open-ended It say an it's authorization. again. that

guidance rate continue our it years cycle. the increase three range, Paul. We could I you for We signal of as raised across higher more. to And year. we buyback could should our be last a read think rate that that we and multiple we'll maintain times need talk And to confidence confident

doing would say I to that. averse not stay just we're So And tuned.

one I sooner. the to sized one prepared we're perhaps it, we given to have been overblown could think smaller one open-ended said, program, been of terms In another and reaction it's a an closing a that just out. it's touch do and Pierre

over trying We be would confidence have looked to to splashy and we're we we cash in that indicate to create last were We're our trying reaction when of out generation. the at a any just just there. trying number years, something

you're that, spending there just Obviously, see about talk that to Med, out a quite exploration. in on up offset but XXXX. stuff has more the And aware spending coming there's you Could up hasn't Understood. you we're lot, other the Mike, East of stepped it? highlights and

with of in some We've working in -- things And if that still of deepwater a and a Mexico. like. Eastern that I'll still know as have up don't on a that touch lot. are Yes. portfolio Gulf Med. Suriname we're trend of lot nice blocks spending the the describe being just region. on got on you got the mentioned We've We that block in we I quite I

on We've explorations acreage trend in as picked in up of that's Namibia with part well. the world that

And that. acquired few we had we in stuff a to prior Brazil, so years got in we that Mexico stuff

So opportunities we've we of work to nice got a that continue portfolio on.

until oil discovery good drill more basins that is working And what we of where happens to But And don't those go when the of out ready spread in in see a going and drill across of and and we're to it's areas, you gas number the I'm we're wells that the optimistic example Nargis there's systems. a focus recent future. them.

lot. Thanks a

question last Borkhataria RBC. with Biraj from Our comes

my guys. for Hey, taking questions. Thanks

first So is share one the count. on the

where you're back from the options the going stepping rule. the program, are offsetting Just the early up but employee buyback period to that XXXX of dilution

I'm corporate to I understand, that to XXXX, the you just trying So to line. or you Just a sense took today expect know be be helpful. lower? it should on in would a Do level charge XXXX any dilution be similar

performance. forward. in retiree do the employee expect extraordinary do fewer that and We it other game. going quarter. to if will a retirees fewer But first stock words, In and That of be And it's price unusual them and up early, was there's zero-sum exercises employees to the stock options.

I divide between is. math. what And on just the is and I think average annual do our confusing guidance depends the the It quarterly, you share price So taking you it, right? stock at give down. buybacks, share trend average but We mean, can share But It's implies. exactly are that's an annual it we annuals, end, is down. what going the look we clearly when day, our count you where and difference count each

continue. we Our the that and issuances buybacks expect to exceed

clear. thinking That's And question about second then is very asset sales. just

guidance, want to something. you're commodity so maybe anything fairly accelerate debt, appreciate close price zero counter-cyclically, muted. to do And environment, basically high Looking actually in a don't your are plans you I but that XXXX to you at at need might

sale to market moment? So Thank at in view on a the bid-ask is asset this limited a the or anything else, the function needed you. or just portfolio cleanup of spread on your just get the view

Yeah.

level a been typical level So of a what activity. of we lower Biraj, guidance little our has than are

Over the asset we've $XX decade, generated billion about last in sales.

So to done, that's, X.X%. say, and was as sold value portfolio There that was there we those. underway needed be cleanup get good some we

at off, say, things when of this margin. always the your looking at portfolio there's your you tail. okay, part There's a You're sell new and -- always sits

that. so And challenging always you're

some us, better underway do were buyers that could that of that transact they for might and any If there's and we've others than to process we interested we are if and things find to put there, the update the we've things on that. the changes fit you now and is what is This we'll out for that. guidance got in right --

add, only can based the the the raise cash do asset we We returns are in And the not fourth of what high on don't Mike quarter sheet. manage bar. took the do that Biraj, outcome clear where projects to and we are it result grading to the or to said, enough balance best sales compete get a just we can that of capital capital, some for the good of that projects. just good for impairments They're portfolio projects

of as want future an flow and lower I driving this discipline has a does ebbs go clear, that. it to a year. higher and little to Mike do but back So low said, higher outcome our and and bit years. in having flows. It set ebb little of returns just as It's It's be carbon. it it We we capital part

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

XXXX call. Thank you. This conference concludes quarter fourth Chevron's earnings

You disconnect. may now