TIDBITS

A variety of articles, excerpts and items of interest taken from Chevron’s news releases and media reports compiled by the CRA Communications Committee
Correcting a typographical error – Earnings Total 6 months ened June 30 = $4132

Chevron Announces Quarterly Dividend
July 26, 2017 – The Board of Directors of Chevron Corporation (NYSE: CVX) today declared a quarterly dividend of one dollar and eight cents ($1.08) per share, payable September 11, 2017, to all holders of common stock as shown on the transfer records of the Corporation at the close of business August 18, 2017.

Chevron Reports Second Quarter Net Income of $1.5 Billion
July 28, 2017 – Chevron Corporation (NYSE: CVX) today reported earnings of $1.5 billion ($0.77 per share – diluted) for second quarter 2017, compared with a loss of $1.5 billion ($0.78 per share – diluted) in the second quarter of 2016. Included in the quarter were impairments and other non-cash charges totaling $430 million, partially offset by gains on asset sales of $160 million. Foreign currency effects increased earnings in the 2017 second quarter by $3 million, compared with an increase of $279 million a year earlier. Sales and other operating revenues in second quarter 2017 were $33 billion, compared to $28 billion in the year-ago period.

Earnings Summary

					Three months ended June 30		Six months ended June 30			 	 
Millions of dollars 			2017	 	2016 			2017		2016 
Earnings by business segment 
Upstream 				$853 		$(2,462)		$2,370		$(3,921) 
Downstream 				1195 		    1,278 		   2,121 	   2.013 
All Other 				 (598) 		     (286) 		    (359) 	     (287) 
__________________________________________________________________________________
Total (1)(2) 			           $1,450 	             $(1,470)		 $4,132 	$ (2,195) 

(1) Includes foreign currency effects 	      $3		    $279		    $(238)	     $(40)
(2) Net income (loss) attributable to Chevron Corporation (See Attachment 1) 

 “Second quarter results improved substantially from a year ago and year-to-date net cash flow is positive,” said Chairman and CEO John Watson. “We’re delivering higher production with lower capital and operating expenditures.”
 “Oil and gas production was up 10 percent in the second quarter from a year ago,” Watson added. “Our Gorgon LNG Project in Australia closed the quarter running above nameplate capacity and we had record production from our shale and tight resource in the Permian Basin. First production from the Wheatstone LNG Project is expected next month.”
 “Operating expenses were down 10 percent and capital spending was down 25 percent in the first six months of the year versus 2016,” Watson commented. 

CASH FLOW FROM OPERATIONS 
Cash flow from operations in the first six months of 2017 was $8.9 billion, compared with $3.7 billion in the corresponding 2016 period. Excluding working capital effects, cash flow from operations in 2017 was $10.1 billion, compared with $5.8 billion in the corresponding 2016 period. 

CAPITAL AND EXPLORATORY EXPENDITURES 
Capital and exploratory expenditures in the first six months of 2017 were $8.9 billion, compared with $12.0 billion in the corresponding 2016 period. The amounts included $2.1 billion in 2017 and $1.7 billion in 2016 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 89 percent of the companywide total in second quarter 2017.

Chevron Corp. Statement on Dutch Appeals Court Decision on Arbitral Awards
July 20, 2017 – The Appeals Court of The Hague ruled in favor of Chevron Corp. on July 18, upholding a 2016 trial court decision that rejected an attempt by the Republic of Ecuador to nullify, or set aside, several arbitral awards rendered against Ecuador by an international arbitration tribunal that is hearing the company’s claims related to the fraudulent lawsuit against Chevron.
The tribunal, convened under the authority of the U.S.-Ecuador Bilateral Investment Treaty (BIT) and administered by the Permanent Court of Arbitration in the Netherlands, issued a number of awards and orders in favor of Chevron since 2009. The Republic of Ecuador argued before a Dutch trial court that the tribunal lacked jurisdiction to hear Chevron’s claims and that its awards violated public policy, and therefore the awards ought to be “set aside.” In January 2016, the Court found that “none of the grounds for setting aside the arbitral awards put forward by Ecuador hit their mark,” ultimately stating that “the claims will be denied.” In support of its findings, the court issued an opinion affirming the tribunal’s assessment of its own jurisdiction under the text of the BIT, and observed that the tribunal had a valid basis to issue interim relief in the company’s favor. The July 18 decision by the appeals court upholds that decision.
In response to the appeals court decision, Chevron issued the following statement:
“This decision rightly affirms that the tribunal has jurisdiction to adjudicate these matters and ensures that Ecuador will be held accountable for violations of its international commitments. We look forward to the tribunal’s final award on the merits, which should hold Ecuador responsible for its deliberate breach of its obligations under the settlement and release, to which it agreed after Texaco completed its share of environmental remediation, and for the multiple frauds committed against Chevron throughout the Lago Agrio case.”

Background on the Arbitration
Chevron filed an international arbitration claim against the government of Ecuador on September 23, 2009, and later amended its claim on March 20, 2012, asserting denial of justice and other violations of Ecuador’s obligations under the United States-Ecuador Bilateral Investment Treaty, investment agreements, and international law. This includes Ecuador’s breach of the environmental settlement agreement with Chevron’s subsidiary, TexPet. Until 1992, TexPet participated as a minority member of a consortium that explored for and produced oil under contracts with Ecuador and Ecuador’s government-owned oil company, Petroecuador. Through the arbitration, Chevron seeks to hold Ecuador accountable for the breach of the settlement agreement and the denial of justice that occurred through the Lago Agrio court’s actions during litigation against Chevron in Ecuador and the issuance of the fraudulent $9.5 billion judgment. In April 2015, the tribunal held a hearing on Ecuador’s multiple violations of the bilateral investment treaty. It has yet to issue its final award.
Background on the Arbitral Awards
The Tribunal has issued a number of awards and orders in favor of Chevron between 2009 and 2014:
Order on Interim Measures - Feb. 9, 2011
The Tribunal orders the Republic to “take all necessary measures at its disposal to suspend or cause to be suspended the enforcement or recognition” of a judgment against Chevron in the Lago Agrio case.
First Interim Award on Interim Measures - Jan. 25, 2012
The Tribunal orders the Republic to “take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment against [Chevron] in the Lago Agrio case.” It also orders the Republic to keep the Tribunal informed “of all measures [it] has taken for the implementation of this Interim Award.”
Second Interim Award on Interim Measures - Feb. 16, 2012
The Tribunal again orders the Republic to “take all measures necessary to suspend or cause to be suspended the enforcement and recognition” of the Lago Agrio judgment, clarifying that its order applies to Ecuador’s “judicial, legislative or executive branches.”
Third Interim Award on Jurisdiction and Admissibility - Feb. 27, 2012
The Tribunal finds that the 1995 settlement agreement and 1998 release are extensions of Texpet’s 1973 investment agreement in Ecuador, so the claims are therefore admissible under the provisions of the Bilateral Investment Treaty between the U.S. and Ecuador. It also determines that it has jurisdiction to hear claims of both Texpet and Chevron, as its parent, and dismisses all of the Republic’s objections to the arbitration on the basis of “jurisdiction and admissibility.”
Fourth Interim Award on Interim Measures - Feb. 7, 2013
The Tribunal finds the Republic in breach of earlier awards (first and second interim awards) and states that it violated international law by finalizing and failing to prevent enforcement of the Lago Agrio judgment.
Partial Award on Track 1a - Sept. 17, 2013
The Tribunal finds that the 1995 settlement agreement and 1998 release are valid releases for all collective claims against both Texpet and Chevron.

Hold this thought - for retirees
When things in your life seem, almost too much to handle, when 24 hours in a day is not enough, remember the mayonnaise jar and 2 cups of coffee.
 
A professor stood before his philosophy class and had some  items in  front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. He then asked the students, if the jar was full. They agreed that it was. 

The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full.  They agreed it was. 

The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students responded with a unanimous ‘yes.’ 

The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, filling the empty space between the sand.  The students laughed. 

‘Now,’ said the professor, as the laughter subsided, ‘I want you to recognize that this jar represents your life. The golf balls are the important things – family, children, health, Friends, and Favorite passions. Things that if everything else was lost and only they remained, Your life would still be full. 

The pebbles are the other things that matter like your job, house, and  car. The sand is everything else –The small stuff. ‘If you put the sand into the jar first,’  He continued, ‘there is no room for  the pebbles or the golf balls. 

The same goes for life. If you spend all your time and energy on the small stuff, You will never have room for the things that are important to you. 

So… 
Pay attention to the things that are critical to your happiness. 
Play With your children. 
Take time to get medical checkups. 
Take your partner out to dinner. 
There will always be time to clean the house and fix the disposal. 
‘Take care of the golf balls first – 
The things that really matter. 
Set your priorities. The rest is just sand.’ 

One of the students raised her hand and inquired what the coffee represented. The professor smiled. ‘I’m glad you asked’. It just goes to show you that no matter how full your life may seem, there’s always room for a couple of cups of coffee with a friend.’