Chevron (CVX) 1 Nov 242024 Q3 Earnings call transcript

Good morning. My name is Justin, and I will be your conference facilitator today. Welcome to Chevron's Third Quarter 2024 Earnings Conference Call.

As a reminder, this conference call is being recorded. I will now turn the conference call over to the Head of Investor Relations of Chevron Corporation, Mr. Spiering. Jake ahead. go Please

Welcome Webcast. Third of I'm Justin. Conference Investor XXXX Call and Jake to you, Quarter Chevron's Earnings Relations. Thank Spiering, Head

Bonner, with and on Chairman CEO, Wirth; CFO, Our Mike the today. me Eimear call and are

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

cautionary contains Please the reconciliation on we measures of statement Before presentation can please review appendix other and be reminded be projections begin, in to non-GAAP presentation. this forward-looking the this found X. that estimates, statements. Slide A

Now turn it I over will to Mike.

All Jake. right. Thanks,

returned quarter, cash milestones strong This deliver growth delivered financial Chevron expected coming are shareholders and production project operational achieved the results, cash flow over record and and to to years. that

executed St. Worldwide at water at of began start-ups up are and and We project Gulf with expected day We Gorgon ahead the additional to barrels increased by and production to set projects, major of record. anchor turnarounds through per Jack injection Tahiti XXXX. the strong continue project XXXX a Permian to XXX,XXX see prior grow schedule. TCO started boost production fields. These high-pressure production X% performance by from in combined Mexico the quarter year Malo to third and and the

the sales We've asset optimization portfolio offshore company's several of over of FTC merger expanded we Western Hess. recently adding its part our announced acres completed with COX X our Australia. review efforts. million storage portfolio, the In September, as also ongoing And

applying and by more We've million cash guidance than and delivered best in practices $XXX free successfully in PDC. our the them Energy XX% acquiring have and We've taking the more X-year flow of combined combined X of anniversary quarter and both shale exceeded companies, synergies billion capital since tight across $X our the incremental cost than PDC marked This portfolio. from acquisition.

plans. to we Devon's DJ the Basin and average, development well performance optimize is XX% continue better than

around with $XX inventory breakeven We XX% have locations per below advantaged barrel. a at

per by expect carbon the in We of around decade. plateau equivalent the industry, that older the emissions intensity grid-powered benefiting of day more through at gas possible, than to lowest of gas Where designs. rigs oil emissions among operations from in assets production production our utilize hold end compared on-site we that the our lower to a Colorado are XX% XXX,XXX barrels greenhouse from And facilities reduce tankless XX% drilling. greenhouse

testing reliability. optimization progress X At the consistent are plants confident XX on in now TCO, boost leak Remaining through processing All facilities, We've systems production production service. for feed which these that initiated allows years continues operation. stations the high final All flowing pressure the conversion, team wet to incremental online are under daily the sour facilities gas capacity and are deliver the in milestones. is the compressors and operating highest enabled of and FGP. with project all existing field's and metering will we're preparing well for of crude

of XXXX. Complex months, the the start-up quarter initial in coming activities into commissioning activities over first continue leading will

transactions Both sales regulatory a Pending Alaska divest received significant approvals, we at Canada, In that approximately continue asset proceeds Canada, close and to in these We We've $X we noncore before announced contribute to positions expect value. at nonoperated billion. will quarter. reputable Congo attractive the offer of they in tax fourth in fit are counterparty assets, interest there, Sands Duvernay Athabasca good long history for and a we [indiscernible] compelling and a are for value for an have project. deal the our Oil Chevron. but better a Shale position

Eimear discuss to financials. to Now I'll turn it over the

our for or Adjusted the $X.XX per budget. was or quarter with of share. CapEx $X.X third earnings $X.XX were earnings billion billion line Organic reported billion per We $X.X $X share. Mike. quarter, in Thanks,

the $X.X balance at of billion the debt by record the our inventory the the Working capital Share on under quarter remains lower with flow oil the range. Our quarterly $X.X quarter of increased was levels. a repurchases despite prices. industry, strongest guidance in for one XX%. top were third ending Cash net in ratio highest the a end year sheet lower billion

to unchanged, realizations Our adjusted Adjusted and financial partly consistently high priorities earnings Compared offset strong $XXX DD&A and million. plan down mainly at balance our higher commodity are last reward upstream and were to we down to were quarter, cycles. through about shareholders lower use due liquids TCO by liftings. sheet earnings with

This earnings Lower quarter favorable Adjusted lower by were flat. downstream mostly were Adjusted same liquids upstream volumes. offset year. was downstream higher billion effects down partially decreased timing Adjusted to lower and increased and were Adjusted refining by DD&A mainly versus $X.X primarily timing offset U.S. U.S. earnings margins. earnings higher effects. due to realizations quarter third refining liftings higher earnings and margins. due last the

to due expense. interest All Other down primarily was

per equivalent around from last in barrels New the our Third primarily the was up production driver. day was main Strong quarter production XX,XXX assets Permian, company-operated oil in quarter. Mexico

average range X%. at We X% of the of production growth end to to expect finish year top full our guidance

matter business. a commodity in always Costs

driver, competitive a have below in reliable operations. XXXX. performance is schedule on several costs outstanding turnarounds and budget and Higher integrating record costs managing on acquisitions. performance we've We while returns track well of Executing safe inflation unit delivered key successfully a and require and

to increasing Our and costs. the teams facilities across approach online unit these our have upstream are collaborated the complex days lowering events, to maintenance and standardize d ownstream

of productivity by of expanded savings and will the technology high changing portfolio, significant cost anticipate enhance to work also the centers. to from ahead, performed, leveraging to billion is growth where end global we in and structural While come optimizing volume the the cost capability largely years billion These $X deliver we in XXXX. including expect reductions $X use

barrels which maintenance XX,XXX primarily of the have El around production quarter, per international fourth oil between from grey expected in higher equivalent Pascagoula. to Impact for a Downstream planned Segundo ahead, operations. will quarter. upstream at and and downtime, looking split are will U.S. day Now have is be to divestments the

between to online. expansion We are shutdown affiliate the to We tight anticipate the at $X expected repurchases come have will also this refinery, a be Share dividends billion enabling Pasadena around quarter. to light and billion oil from be quarter, expected from in sales guidance. Jake. billion the before to be are unchanged $X.XX Proceeds $X in about quarter. to $X office you, fourth prior Back billion taxes the

our That limit of get that now We'll questions. concludes prepared your to X We're all ask questions best question. answered. yourself your remarks. to We our ready you do take to

Justin, please open the lines.

Bank our question And will from of first Instructions] Jean America. Salisbury with Ann [Operator come

on investors start-up Chevron what TCO largely okay, have consider should the tests. where process slip TCO I it here? feedback and in commissioning you on milestone from And started and hesitant we Is investors there are like where there probably much main At listed like here now? The can't really heard specific derisked. from could start-up say, you've point start-up wanting is resolution a

Yes.

So thanks for question. the

We are quarters you And and we've now making really we've where this delivered had expected I on great laid again saw them. milestones several think that out progress. quarter, as

et And future commissioning significant underway some said, begin we team ahead, predictable growth procedures is relative to and we production the low-pressure in quarter. activity, the complex particularly is expect, work So the the production still here. startup project. on as work through first still well is That of there delivering day to commissioning That of said, cetera. ever, start-up I state current and ran

is So our cost schedule and guidance unchanged.

as is make and reliably start for other is and from things run reliability, years. to safely then everything we forward. key the over us, to to of learning that we the One this up we have a ensure projects want sure ready go

go And a entirely know starting be about you magic there. so is threshold to there's we -- say But up very But it's every very don't I derisked. to where way quarter being can equipment the we're going in see we the it say everything that everything is we that it's de-risked. passes, continue methodical positive.

you along recently, of just share Mark some there saw with you can Eimear, was Eimear fact, TCO. Nelson. things at the Maybe In

low-pressure in and Mike. transitioned Thanks, ]. with was Tengiz, back be boost arrived they when facility. existing and was all to the fully it we actually team pressure achieved a Jake Mark with there, that and Yes. [ feeding fed Yes, the were of day in the trends when to and we Tengiz production they And great be milestone the X production key to through

high been achieved that's think that production to I fact the reliability shows the at producing the levels pressure was So there. high facility the just

also We at engine. sites visited X

until The and safely. digital first plan they're control operations the was work how we optimize and the one control And saw center. plan process leveraging advanced keep production, to tools, There, the technology,

third generation commissioning So that commissioned number sites being enabling to where really a There's the project large, of there. that that the a of went is new optimization. equipment see the through was great of the about, and complex being the We whole site, is XGP ongoing level talked part high Mike side. to that's

that do the how on So do equipment, we team the performance we very to we the ensure a methodical diligent we that testing the way. and commission talk being equipment, in about there to

So that see. was great to

injection design to injection were produced we gas we went will management, the when ours. with we And the all doing also with that the We reservoir injecting they to of testing the third-generation have, be pressure and facility. help into with

wells reservoir. So that's back know a gas derisking key will into of the take that the the end bit to of SAR the

also the reliable by the that's a just by and consistent ramp We really rigorous to team and it that's over the half great but encouraged a overall, and the first So thought visit. was going startup came safe achieved, a away by ensuring of in up progress XXXX. planning being work

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

on the want time Permian. to some Just spend

at little company prepared to in X% think unpacking ultimately in guidance. of to of top And getting expect a X% the spend the more should that just You time in the about towards you the you sustainability asset? that? indicated end to strength how this we in Can operated and Mexico. highlighted plateau had New path the bit the that, to remarks you range finish

strong data side. is the in transparent Yes, quarter is not a Neil, Texas nice lot a I New being and The quite again now Mexico. activity we realize our as did in the of have Permian. maybe on timely

-- the out Also we're A, particular, lot And that. third very outperforming of couple on not the Spring second see one, in and been got those the very, so seeing and in strong of a the performance side things. the our the wells. a Number performance in that Wolfcamp of But well has Texas Delaware the in you Basin. Delaware new top expectations. in quarter, We've we're in quartile may Bone

the sustaining So logistics completions designs, talked artificial mobilization. from gains everything And triple seeing We're frac before. and production. lift strong We've now, coordination in reduce off. pop optimization new efficiency seeing we're wells we're efforts maintenance In and to about been has paying on seeing are Proactive time completion very business, strong. performance. base stronger wells reliability very, the of those new

across And the We in in so basin. the performance continue that execution activity to then improvement just improvement in and see the the of entire portfolio of the wells.

we to towards begin a flow. cash our a really towards the focus mark we little will day X move As next free profile a million-barrel to there plateau. we'll And year, bit on shape begin

less so growth flow driver, And if of will. become more become will and the will free the driver cash you

be free So to spending and going CAGR probably as you'll peak I down. there. for growth, what CapEx. We'll The the is open been the Permian is we'll probably think And years, than that. well. cash to bring year. see forward, last going attenuate which as that we'll in XX% will up attenuate be this to we really a capital to start move the has flow X And begin at this higher year

So sure exactly that. what curious of that are people like. I'm more about follow in to terms looks

more guidance here the call next provide over we'll or So X.

But cash the flow in it productivity to what like. start stronger looks efficiency future. free free of even continued today, and think and going can strong for to here you cash the we're that is So headline gains, manage flow

And the Leggate from with come will Wolfe Doug question Research. next

relative a best quite appreciate observe the If opportunity the uncertainty of kind congrats while, your morning on in value share Hess I prices so huge question, if weight your operating you a this of deal precursor could Hess. wiped out we probably [indiscernible] ask your my of I question. the quarter to But is as at stocks is a this basically since to underperformance clearly announced to the look accordingly.

So something Hess like And this. goes question. [indiscernible] it

on we now last call. You've FTC spoke since last got the

presumably are I You've would got Hess disposals. with deal your to with, think ahead Guyana. the and moving guess, ahead shareholder in you're acquisitions legal close if what synergies related the the you're not go and post so many position? The confident vote not Why

lot a relative number one. Well, to relate performance the shares look, of the of things,

that prove fact we've said, cost unevenness But you TCO we've to contributor. that some -- the need to Hess I is had think and I so during as And we dispute update the and announced time. we But of wouldn't period uncertainty the ironed out a performance material schedule that. we've this

been And as got that a improving. are of think things deal there's getting Hess of of priority. I an that you a The today, we've lot if has there's number a all that that, attention has So are with and high to of Look, a condition which be all I arbitration structure a part precedent concluded. arbitration. think are see

on for timing and But planning And oil prepare transaction we unfortunate, that set to the we're we're move for energy integrating the to the working that way is going company is the execute forward confident and and and are is be going at look transition. future. we to We this it deal gas and but that's premier process well. very being companies really very the way that can successfully the closely in the on realize concluded. will point written We're everything prepared the integration X forward transaction the to the I up continuing this the

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

wanted Canada ask to sales. around I the

the long and your just different you I a could decision net of was resource. and resource talk obviously. have Hess But was buy So helps thought that portfolio high-quality to Canada, of about divestment, Guyana broadly, to very more if one, arbitration surprise. ahead obviously I is the diversify go back the decision, the to long-cycle kind deal, were But rationale cycle, you would buyer of which now also to the a execute

how that just that about the you thinking and be So helpful. if could talk portfolio, how about about thinking you're you're would

Sure.

also really steady viewed many Biraj, good Canada. been for history years. the as that long non-op of a position, has assets cash core XX% So business. we've as a It's portfolio. we've got wasn't indicated a been AOSP in a in contributor But it

some So were the but point, a it, the struggling as and The attractive we were to when time, proposed -- to today. both AOSP noncore other time as better we've Duvernay, we position and were potential compete consider AOSP, buyer parts a both. to and not that came a it's willing of a saw, And us indicated tight portfolio. asset. long-duration our unconventional marketing for offer I are Duvernay, a made strength we're was we faring think very long marketing to for to there we The give value in the buy asset, Canadian in buyers to good and while is actually but for were offers against your us the struggling us buying [indiscernible] the shale asset, producers

recovered. think I have valuations equity their

were was thought we we good we weren't Others a we our prepared but opportunity want felt been to value. to prepared so to what assets over presented values, discounted value, what we value was we the at patient. years. portfolio Yes, And we do were quality transact. the the to when And we've And with an have we But oil to sands that we of transact add left at good got fair long-duration portfolio, thought lot that. in those a have today. were and

that say we of is And for assets We're heading think if value our divestment. others you for to I to add don't in grade portfolio portfolio so willing we'll eligible read desire under to that anything question. high improve going kind to value than to does kinds our to time. that of technology those fit broadly entertain to of be kind of of would potential ask should our over as the continue and And that us more the and of kind quality the has balance it assets ourselves use portfolio, always assets a not

from next with the come will And Silverstein question Josh UBS.

the of comes downstream? this sales or $X Just from comes between the versus savings, maybe split announced any billion then cost of savings? additional how cost what And billion structural billion much asset upstream and $X sales from asset on to year-to-date $X

Joe. Thanks, Yes.

of talk let through our new that given here, So you material. me plan some kind

on years. been competitively over all, you the of we've cost in saw first So monitoring disciplined the slide, as our

So disciplined are that next essentially reduction moderate, of program there all steps sustain business, in this is our always to cost our set our important. costs given is

So the line. BS expecting we're reductions what controllables, we're we about focused is of here years costs on on realized over growth rate focused run XXXX the is in be to deliver the Think while from program reducing a absolute this by XXXX next end significant few and the business.

seen So the XXXX. in benefits be will full

So in is actions. first really coming terms of category portfolio the is reduction where the from,

So Alaska Congo the today call, examples sales. in what like the we've heard [indiscernible] Canada,

large would reduce reduce from of a this associated associated And there's our direct portion costs, expect see time. to we with is costs over with the the that. asset portfolio. We transfer assets those So we then overhead

part that's this So one program. of

The organization. and are improvement business from in we functions. coming from They're these see that They're initiatives units, across the is coming segments. initiatives, second part just the the all

and here what an twins of to initiatives That think leverage and examples digital example. maintaining we're cost Some be operating that transformed is drones about we about would that technology robotics, our how talking have facilities. reduce solutions

global our announcement of improvement our that we example be look would work. work, really An how to would the example we the be initiatives India. Another center in do there do capability where engine recent

centralize our centers, standardize So in workflow. of these and more we're looking to

is. the fully They're billion, execution-ready with have not the initiatives an or Think think cost additional So that target what as as these $X initiatives and working towards that reduction When cost we execution-ready. think that's is are third the you either about are range, they're quantified. divestments reduction we and about program underway in the billion haven't what about first really I'd firm, our plan, that their that execution-ready. becoming say

to work them have We do execution to make ready.

describe and updates we provide to results. the So that's as on expect we deliver on execute these we I through XXXX initiatives. and how would them range, do that We'll

to Morgan McDermott with Stanley. go Devin We

returns. and to wanted I sheet about shareholder ask balance the

Your strong targets. ticked net support well your quarter-over-quarter debt up still XQ upping bit below in you're our buybacks. long-term And a XQ versus

and year. my in in You year now inflection nice But the about continuing sale proceeds, how how been shareholder commodity the years. use and [indiscernible] support have markets think I next potentially to [indiscernible] sheet tapering noted, flow prices as do guess coming volatile versus cash and oil waiting specifically cash between back commodity you from end returns for given the into and next TCO Permian you have the lower few question markets over the balance is door to and it

use you that question. about sheet the balance of think and So core the how as

who's repurchases, this me been That news. new let volatile in in industry balance commodity to prices cyclical I'll a Devin, then Recent Yes. address let just Eimear about the share not this is in business. industry we're XX is And years somebody works. for talk and volatility the sheet. commodity way

we're So the prepared nothing well backdrop is not for.

to that, of thing a want our little track record cash and here kind above for reinvesting after future brackets execute our sustain most the to in we midpoint we the where just we've grow rate sure financial the had to XX that years we the the we've shares, of were making of fourth doing that run a priority. of flows got this and The range that's program. projects is of record buying can is increase We share track repurchase and recent reiterate priority, unchanged. I support guidance. second in back which you strong organic First is row, given dividend The a quarter. a billion $XX.X way bit

for strong to sheet. is the net a fourth a And in return credit and ] maintain XX% debt. to below AA through last got third We've 'XX done share then shareholders cash we've XX is repurchases, years. to the The balance excess which [

is can priorities, we trend And I important. through that in and behind financial consistency commodity consistency price think got there very so we've stand execution cycles. And a

we've 'XX that prices up and seen where the open 'XX a We've a We've Over commodity we've years, OPEC XX seen accordingly. a pandemic. seen to repurchased. financial respond taps the last crisis,

I'll a we've the Eimear a the shareholder so circumstances unexpected very strong been And have been we've balance conservative a distributions part track maintained down little of strong through let about and through let maintained because in through it, balance financial talk sheet. and record more cycles. position We've sheet.

cycle, use shareholders when its award we asset consistently. Devin, right? we Mike. sheet, create we're talked on that strength maintaining focused value, the look Thanks, an the about Yes. Mike to at volatility balance the and navigate to It's through that

years. when end we that's today, levels at So been last XX-plus of at debt we've our low net under the over look our the debt where XX%,

proceeds So we're with bit with multiyear little we're and asset we're the very the a proceeds are anticipate with will underlevered. a in are, asset comfortable approach, And in come we're right with net sale we term, the we near we're down the with that's given planning this the growth through-cycle where sheet. that and short comfortable the with and But all the expecting coming. we coming sale are additional a time now balance that and where term horizon debt

to Lloyd Byrne And on Jefferies. with moving

great. I there. very wanted see think quickly mean, But then to surprise progress the guys your and to want I flat it's has on there holding free end to can the cash and and scale. the flow. First, Maybe AOSP seemed divestiture operating just you up the the opportunities think decade. just -- you progress to whether goals? comment whether ask opportunities it DJ more impressive M&A be for question, of there's synergies, to I really I I long-term congrats follow opportunistic. to Biraj's team, about you really, that change has your the been And Does

Yes.

to have to on on it buyer, the right? was kind was logical And a one AOSP. been and And discussions There quickly had operator, we've value. the touch just years. really most common to get So of over view not able

changed. what's so And that's

and is this give fine. continues But We're delivery very realize target, out some deliver barrels that. have very relationship. closely in our starting it's area constructive to happy of come to we've know I'll have their from we in that's can do intended saw that a Colorado got there. derisk used thing been to that had in of if the that with the and with diligence comprehensive I'd can a a We've that's asset, permitting able the And parts decade. about And carbon work can achieve value that's by more. you We've strong XXX,XXX to our the day some a track high record team we opportunistic, that new a out and expressed and assets And we performance. we that about the achieve that objectives point. of And use. our with We're through learned balancing the is so there time number deal a years done exceeding quality of very And we the the the thing over really talked these the the record we and some last find of our little people multistep with is we've working of DJ the The gas there confidence that we X to long of process. and ago, of we're I'll acquired. when place quality longer-term you and seen lift synergy companies environment. you we've the that things look, And the at laterals synergy the that that we've that had we first lower some wonderful we Basin. asset, the DJ, regulator job more do say the say a in commitments. the other and been integration want regulatory we the I other to wanted ability I plans end say We've Three does the a the our in to companies by like objectives. of concern drive bit there's footprint say development And ensure each portfolio. track been

We're it. And on question big this you priority say wouldn't there. If so that's drive the asset. there. was The there. very list. with some additional operator are high to to value real I the We're out acquire positions key is pleased biggest the going of

from the with question will And Barclays. next come Jiang Betty

to ask there Gulf about of in a including Can happening the talk think like about Feels came technology anchor is renaissance does is bit production GA in want you opening project you [indiscernible] any how that the technology to I of Mexico. just that's So about resource and that area? represent for And upside for up how Chevron and longer-term portfolio? new opportunities resource opportunities that the online.

began the understand then would that explore on Gulf an and deepwater, the in That's the on now produce something exist be develop last the the does. the pressure And breakthroughs to was temperatures. deepwater, just it's and an elephant, sure of African at mentioned the a Initially, it pressures week psi to doing techniques to to ultra-high and the full a help ultra-deepwater the Mexico. we that. Betty, people Yes. And producing XX,XXX with first and and quarter. standing people into Anchor the of were story in in I extension offshore, And one grown to and of technology. out I develop it's if essentially on shelf elephant male as project, ultimately now ultra-deepwater. move onshore from

that -- et everything goes with capable high-temperature cetera. it's pressures. so a be with pressure. that along needs to that dealing is of blowout fields This incredibly high That And preventers, those the includes [indiscernible]

exploration XD as geologic developments node technology exploration essentially, characterize now helps focus effectively. a risk more We're on That working XX% seen. like things opens of is We're drillships, hookload going which other on of load kind hook our there. factors using to up portfolio ocean out it tools and of ever and [indiscernible] is this million-ton the better guide the predict bottom X exploration at require opportunities. a us areas now have Think to We we've capability. least that AI help highest lot,

is the So us The an conveyor for a geologic technology the any the area. to there think then of incredible out to has times. advancements out means. the produce over by Mexico belt done material of -- and And Mississippi been vast the isn't organic allow history Gulf to industry identify continue there. It's was River and of I into yes, Gulf Mexico resource

distances lot near better working at also about new and a can is this, left back that development. make We're going wouldn't it And think a back field hard facility. with tie use about say developments, very as to a longer think I smaller and more you're develop there's go. is greenfield stand-alone Ballymore maybe last ability of existing to to those good brownfield a The see well. unlocking tie is I thing example the support of to discoveries an this of infrastructure I'll as existing to easily opportunities. but

the the of is So Gulf heyday, far far, from over. Mexico

come question Paul next And the from Scotiabank. will Cheng with

given done faster done there's well them, an they you in and that particularly the maybe not have And time. have You the turnaround in of around TCO they're than excellent and coming production like impressive Gorgon both that have both the scheduled record turned has well.

expand process or the changed in so is one-off future. So you is this a repeatable could it we a benefit that that that the have

more higher that's talk the execute a little at returns, Kazakhstan and they to improve you're bit it's Eimear you maybe turnaround this ensure well, to the execution. not earlier. enables And done are as working reliable earlier these because and to been been turnaround keys we've is much what Paul, facilities deliver work this. Gorgon, latter. are operations Eimear, on starting of and one lot than downstream can turnarounds the different. upstream to I similar continually And look mentioned that out about seeing too was more in specifically a just in on between has both

refining Yes, And and to point, they're similar our problem. Mike's no more Paul, in facilities, for different. they're Gorgon, Yes, upstream mean, I the thanks, or question. like TCO assets than whether complex

so been really approach to And how complex we area try performance. to standardize an us has for of these focus drive and turnarounds this

this the think maybe few think it is improvement the a we I actions just that about diligently turnaround. on looking scope only to do years. the we've discerning, work to on equipment I maintenance first or shut and I plant the when do I So one think would units the the been for about is the the as do and And point And would the all down. working work maintenance of at how need can include run

of a call scope in so out very We And being been out. delivered diligent improvement about rigorous and management. what's because lot discerning what's there's we've

but digital we've prioritization. used give us tools. help execution really help digital a of digital of us The that to second I'll us flange tools that and in only with help not span that you permits, Digital examples tools improvement tools the to testing planning at couple in talks with given the to with that another isolation, area. the turnarounds and help That's managing leak with help tools us and of control personnel management digital with these bring tools digital addition once. huge that numbers

today, and whole The third benchmarking doing different goes benchmark benchmark I one, benchmarking benchmarking the we're taken down believe a the which the units. level the We to turnarounds. as equipment But that level. we we've

efficient benchmarking so we and Then improvements the in rigor say, this more can would positive finally, capability results. the have yielding And be just where learn we perspective. I in look to experts to is for

have masters they're turnarounds, spent their most turnarounds. We careers that employees in in of have

can in looked and the we we have learned those learn so in the we're them for The that can we in to share we so these that Gorgon lessons with refining cross implement resources lessons and to learning vice learned TCO, experts upstream. that And versa. opportunities lessons point in

change delivered turnarounds this So has have step them of performance nearly executed a year, our almost with those coming X all in together all been at performance. things driven level really of industry

So business we're excellence. industry-leading. And very pleased the of be to work criticality results given as are -- we're of these this it

ever And duration of TCO-KTLX the X with saw decreases refinery of Paul, with up to was prior the were our duration. a XX% the Gorgon [ in turnaround improvement compared compared last one. XX% XX% that turnarounds X Yes. turnaround in ] unit. quartile turnarounds out to turnaround duration improvement cost The to in several was in line turnaround Train executed The X a our of targets. first best Gorgon of

the that's think I see some that So real system being across quantifiable you can there's progress achieved.

comes next the And question with from Bob Research. Bernstein Bracket

right? I the put [indiscernible] to do to and the is Texas. an the that? reductions, opportunity to the to that continuity. about California Or that in structural relocation of reductions, How and If and a threat want to chaos relocation it believe I think context from cost you There's the return organizations? Is I reductions, cost redesign it cost processes

We're one We're of work another. -- I about will Bob. to of necessarily from relocation talked occurring period all go over to the in done time. people from Not be work very the that's one about to location a think a [indiscernible] another, Houston. it's to being going to moving going don't threat, thoughtful location moving we've

So earlier. about that go Eimear it may global to has capability centers these talked

that Some more of find we work tools efficiently to things. help may do and the it, us automate technology

a to shifting little and and Ramon bit been period make San of sure platforms, so work everything do And locations. technology We'll of of and different we'll time. for to migration about reduction it's Houston. planned that just I a over it's out any from think And think to risk. methodically a It's simplistic thoughtfully lifting a

in work think product the approach global I did work, that's and of so a cost has But in of historically it lot way we're had looking around to ever and a structure ways other units ongoing ways a many there's workforce business can this best now work it's an that be do world And work done. the do that company at that's places different improving. to for evolution that that best in deliver it work part because to the to do a

Lucas moving with And to Paribas. BNP on Herrmann

guess. I at look will inappropriate could But [indiscernible] Fairly what's a starts I happening be it's I of talk maybe if bit up. obvious December to and question, forward. just And talk you about more little going obviously, CapEx time if an better. wanted I wondered you. to both with the business,

Mike, that think talking on, cash associates decline the to to of [indiscernible]. driving come for rate or it's that around If Med your goes, or is CapEx in NPV down got if coming projects opportunities [indiscernible] about as including the $X of start value year. the [indiscernible] I the opportunities maybe you're the to though What's opportunities, billion, fall at feels free in CapEx the really on. where I see so current support $XX.X it to the billion, production it's deals the Permian given, about CapEx billion $X these assets going $XX everything CapEx billion East spend, Eimear, CapEx of at If for hard, flow obviously, particularly You've projects look plateaus moment. beginning in there. you coming on the guided at driving

right X, So deep is really start as down about to we a emphatically long but coming next very materially it benefit the now thinking portfolio move duration. forward pretty to CapEx resource, in and years essence, from starting X you're over but in is

Yes.

So you've Lucas. covered there, a lot of waterfront

to point capital used Number some then over of a fourth and it a thoughts. one, an bit address the you I a of share quarter, projects. at a year, ratability to Eimear we is lot in the that heavier. particular, pattern half long-duration let try be big CapEx, her of There was think our had me back important little have Let the look if tended of to program

now. on lighter. been organic all We're CapEx bit We've $X ratable little a year. our quarters quarter First, X billion very this about

number our more a or XX.X Today, XX-something, much it's projects is. CapEx in that ratable A we're doing. $XX of of the it's That's ago, as the Point become two, predictable. down. was affiliates, nature coming decade you it's you talked billion. reflection CapEx and So about say, whatever that

we half where than were. of less it's So

cash. even than come the in the And to optimize have substantially has capital down as much continue is, a grown before. to efficiency improve time, larger further we of more it We're seek we A capital and company. generates efficient ever require to over production it's yes, does, doing capital three point more portfolio will maintain it. So manner as ways our

And your into to move the the trade-offs so in CapEx concludes. execution. evaluate our the you opportunities, And come affiliate in project the as year next down you that capital analyzes those at Kazakhstan think of what's will readiness as is near I there clear very term, investment look

off. business affiliate plan finalizing right We're you'll XXXX. process So see now of CapEx in come for our the

think we'll after to intent our process. But the guide which years about at more something to that now. many, here And so we've to number. But talk demonstrated over complete is it that is a bit our planning we're premature very you looking then stay for me and many we all I is disciplined, trade-offs

add do how there, want cover we'll with Our change out you And us guidance respect to to and I that you range think about of that. changed, forward. some does how changed should $XX that is you by what to means unchanged. everybody billion larger anything talk about that? quantum, to Eimear, it's if billion and expect $XX numbers why throw you going it's some And think that and should

I key now. focus CapEx see the growing I'd free the right cash as you've referenced is say and you together our that that how projects Lucas, the a think projects and most putting it's coming covered of profile complete, those us. all it, Mike, we is plan given for we're flow off

So get a right as information complete you we'll we we fourth process on of quarter ahead process, to the now. don't more give call the want

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

structurally the there, in could about a profitability having impacted of how market were? position the in things So announced your considered you latest of California? past in to California weeks, as be capacity refineries another had And and see will still closure? we've there talk kind shutting adapt is closure X think do they couple maybe back think this you've will over Do you by result higher or something the downstream, you where we'll

would policies what go most to residents, to has and the seen implemented gasoline prices we've action that ill-conceived country. its think likely John, bureaucracy I Yes, inventory of the all, deliver make prices is is move a into This state say management in a constrained is the first I state turnaround planning social they another recent is to of economy insert by doubt California. of adjusting key than greater create bureaucrats Policies prices. segments Putting of volatility, and planning higher charge to in any tend faster lower. create worked different it centrally hasn't likelihood demand I be in in and supply states, that go will not higher, more other highest

opposite. demand is as is measures looks constraining unfortunately, one to going you lead them and doing at these anybody strong to for are so And just supply the when investment the still discouraging and But that them conclusion. have through advertised reality think

a old. for got with California very We've are competitive integrated look, strong both relationships. they're we've and customer strong operated over in so value got very chains brands, strong -- we've over years century refineries And refineries, XXX of our

competitive other within that as are our will And so we these continue evaluate asset, to portfolio businesses like discussed we've every earlier.

only in getting needs And compete. our But tough that's We'll when that if to to so evaluate investments thing alternatives we justify and it's the customer that very system, evident it continue any to you, new meet becomes do. will it's appropriate I'll and and tougher. tell

from a with take Roger Wells Read we'll question Fargo. And

earnings outlook couple Yes, terms the supply/demand balance in to in a talk I'd kind delayed. globally, about other we've the like seen companies tightness get ask season Mike, 'XX. favoring We've units of seen new this of LNG of you, some markets

could for think Chevron at Just curious about us and if play versus you spot maybe you could we might how the how look margin contract in. so potential it to remind that exposure your

Yes.

continues So backdrop grow, against inventories. healthy of a very comes but it to LNG demand

Europe asked You time are year. the U.S. X healthy strong for of in are Inventories of year. time this about for this the in very Inventories

that Hub Henry prices. in You see reflected

healthy And becomes market a dependent. reasonably so overall, has currently supply that somewhat weather and got we've inventories good

got would And change U.S. in course, to it market. that XXXX with up supply the tight look on is coming winter. setting coming can cold supply Qatar. And But of say we like now, then particularly I right We've on be longer doesn't very so term, a a in have

so And market. coming more that there's supply to

couple it's we And saw situation tight the short as that term, so to when what Ukraine nearly market began. of prone really I years medium think the a as not ago in to in a becoming is

occasionally. and out contracts the lot indexed our Asia Our long-term that cargoes primarily are long-term particular on on North from contracts. primarily pricing or portfolio position of oil sales percent our some Africa spot have tied parts primarily of price. less and But and XX% West is exposure system contracted of a we'll crude to of spot into is XX-plus other Most

Kumar And moving Nitin with on to Mizuho.

chain, [indiscernible] just seemed the I seeing was to offered quarter. the looking business. business. Mike, to you a about to on it for there, supply just from maybe this wanted a particularly bit chemicals are be some like look of touch Asia? It little bit a What tailwind but your You've like at earnings what stimulus in earnings heard the

Yes. We the actually year. have course strengthened polyethylene over margins of chain this

an been improving it's market So backdrop.

Some markets on of supply big has slowly of that that, kind demand but I These commodity grows certain long-cycle chunks. areas. are in steadily think, comes in short-term been some supply disruptions

chains, been a market that's bit had that's a we've so pressure little oversupplied, Asia. particularly And olefin the on in put and

this into you think see online expect that an chain olefin in and to And margins of projects one a perfectly. got trough they're come Middle I will We've so half time, to over in the come the projects improving couple things these decade. we improve. one of what's East. market, after can't likely think those of time second And the I But on U.S., in the

Asia and cracking is alternative. Naphtha the naphtha obviously. the big market, being

U.S. cracker at the Middle Asia between or prices oil ethane crude East those with you've in margins crackers what the naphtha margin, got on competing interrelation some have is do with, You and the an some or X. interplay if

competitive. time. we've a over Caltex before. a CPChem cycles GS be a good and we well-run [indiscernible] business, feedstock, sector over the We time ethane-based on which as and it business, has in is very watch will in Korea this of constructive think kinds fundamentals these is very we'll very seen of makes well-run so And it remain particular, lot

Todd Piper And moving Ryan on Sandler. to with

happening the development uncertainties region what the commercial is or guess, [indiscernible] maybe the of the just in operations, leg status on just and potential forward expansion Maybe of Can it's given in the terms expansion I what not [indiscernible] impact is maybe update right of Mediterranean. you current now? current Eastern a next the provide one there and moving

Sure.

is integrity So of safety our the and assets. employees priority the the and obviously, well-being first

seen year. the million Leviathan both at day vessel next short depend But on expansion cubic they We this And Bcf. the to is still We'll have that pipelay Obviously, projects was not in on we've those a X.X. We was both to of as environment concluded billion being the that cubic production both about that tomorrow X.X at X.X and is were underway working current increase advised, completed X.X when contractor with. Leviathan got keep feet about risk demobilization XXX X the of will you by the day late see Tamar the projects feet projects from to that remobilized. term per comfortable

that those for end on more feed the track of So this late capacity. to more. decade, that a next up are larger us the expansion at for entered and be Leviathan processing take now. That's project a We've on we're would There's towards year. that feed would significantly add platform on some completed in room

So more to follow.

make underway. the and been do risks and despite some because regional are we're region. I in sure of of to down in times production that's term, been able the supply the to actually the the all in couple of But to our country we're both had safe. at a take meeting customers. short commitments, going to We've people Leviathan that conflict obviously, think

Citi. last from question our Alastair with comes And Syme

earlier Are piece. sense the you seeing basin with system non-ARP operators get to in doing? position. I operating Permian the the operated X-speed what we royalty what wanted various just seeing in a you're to of talked to Mike, respect a are

of our components seen the of strength all X We've across Yes. business.

club royalty in a be development bit the the a X lower JV And highly our in the little our economics the -- and year, last seen the we know if that as is for think we're don't I there's X-speed that of are you little going variation Our XX% was this good attractive I approach. And royalty see Royalty our it very a our JV kind may describe higher. question. the of I enough said between some said, a on say program do partners Certainly, higher fairway. I [indiscernible] I'd see bit interest. I sweet with growth that. X-speed wouldn't significant program same to what all little than wouldn't that, we in others say than to operators say is and think we a years. as probably I where we've or spots. be hold

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

Justin, you. back to

Thank XXXX Call. concludes Earnings you. Third Chevron's This Quarter Conference

now may disconnect. You