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

Chevron Announces First Quarter 2022 Results
•	Reported earnings of $6.3 billion; adjusted earnings of $6.5 billion
•	Cash flow from operations of $8.1 billion; free cash flow of $6.1 billion
•	Record Permian Basin unconventional production
Apr. 29, 2022-- Chevron Corporation today reported earnings of $6.3 billion ($3.22 per share - diluted) for first quarter 2022, compared with $1.4 billion ($0.72 per share - diluted) in first quarter 2021. Included in the current quarter were pension settlement costs of $66 million. Foreign currency effects decreased earnings by $218 million. Adjusted earnings of $6.5 billion ($3.36 per share - diluted) in first quarter 2022 compares to adjusted earnings of $1.7 billion ($0.90 per share - diluted) in first quarter 2021.
Sales and other operating revenues in first quarter 2022 were $52 billion, compared to $31 billion in the year-ago period.
Earnings Summary
				Three months ended March 31	
Millions of dollars 		    2022	 	   2021 	
Earnings by business segment 	
Upstream 			     $6,934		 $2,350
Downstream 			          331		          5	      
All Other 			      (1,006)		     (978) ____________________________________________________________________________
Total (1)(2) 			     $6,259 	             $1,377

(1) Includes foreign currency effects     $  (218)		 $     (2)
(2) Net income attributable to Chevron Corporation

“First quarter financial performance saw return on capital employed increase to 14.7 percent and our balance sheet strengthen further,” said Mike Wirth, Chevron’s chairman and chief executive officer. The company’s debt ratio and net debt ratio declined to 16.7 and 10.8 percent, respectively.
“Chevron is doing its part to grow domestic supply with U.S. oil and gas production up 10 percent over first quarter last year,” Wirth continued. Chevron’s worldwide net oil equivalent production in the first quarter was 3.06 million barrels per day. Permian Basin unconventional production grew to a record 692,000 barrels of oil equivalent per day in the first quarter, as the company raised its 2022 guidance to 700,000 - 750,000 barrels per day, an increase of over 15 percent from 2021.
“Consistent with our plans, we’re investing to grow both traditional and new energy business lines,” Wirth added. The company’s capital expenditures during the quarter increased to $2.8 billion, 10 percent higher than last year. The total of full-year capital spending and announced acquisitions is expected to be more than 50 percent higher than 2021.
Chevron accelerated plans to grow its renewable fuels business with the announced agreement to acquire Renewable Energy Group, Inc. and the signing of definitive transaction agreements with Bunge North America, Inc. The company also advanced its hydrogen, carbon capture and offsets businesses with an agreement with Iwatani Corporation of America to build 30 hydrogen fueling stations in California, an investment in Carbon Clean, a global leader in cost-effective industrial carbon capture, and an agreement with Restore the Earth Foundation, Inc. on a carbon offsets reforestation project of up to 8,800 acres in Louisiana.
The company also closed its previously announced agreement with Neste Corporation to acquire its Group III base oil business and NEXBASE™ brand on April 1, 2022, strengthening its position as a leading supplier of premium base oils.
“While we continue to respond to the energy-related challenges of today, we are deeply saddened by the tragic events in Ukraine and hope for a peaceful resolution soon,” Wirth concluded.
UPSTREAM - Worldwide net oil-equivalent production was 3.06 million barrels per day in first quarter 2022. International production decreased 8 percent, while U.S. production increased 10 percent compared to the same period a year ago.
U.S. upstream operations earned $3.24 billion in first quarter 2022, compared with $941 million a year earlier. The improvement was primarily due to higher realizations and higher sales volumes.
The company’s average sales price per barrel of crude oil and natural gas liquids was $77 in first quarter 2022, up from $48 a year earlier. The average sales price of natural gas was $4.10 per thousand cubic feet in first quarter 2022, up from $2.15 in last year’s first quarter.
Net oil-equivalent production of 1.18 million barrels per day in first quarter 2022 was up 109,000 barrels per day from a year earlier. The increase was primarily due to net production increases in the Permian Basin and the absence of impacts from winter storm Uri. The net liquids component of oil-equivalent production in first quarter 2022 increased 10 percent to 880,000 barrels per day, and net natural gas production increased 11 percent to 1.83 billion cubic feet per day, compared to last year’s first quarter.
International upstream operations earned $3.70 billion in first quarter 2022, compared with $1.41 billion a year ago. The increase in earnings was primarily due to higher realizations, which were partially offset by lower sales volumes. Foreign currency effects had an unfavorable impact on earnings of $92 million between periods.
The average sales price for crude oil and natural gas liquids in first quarter 2022 was $93 per barrel, up from $56 a year earlier. The average sales price of natural gas was $8.87 per thousand cubic feet in the first quarter, up from $4.72 in last year’s first quarter.
Net oil-equivalent production of 1.88 million barrels per day in first quarter 2022 was down 170,000 barrels per day from first quarter 2021. The decrease was primarily due to normal field declines, the absence of production following expiration of the Rokan concession in Indonesia and unfavorable entitlement effects due to higher prices, partially offset by the absence of curtailments. The net liquids component of oil-equivalent production decreased 16 percent to 856,000 barrels per day in first quarter 2022, while net natural gas production of 6.12 billion cubic feet per day was largely unchanged compared to last year's first quarter.

DOWNSTREAM - U.S. downstream operations reported earnings of $486 million in first quarter 2022, compared with a loss of $130 million a year earlier. The increase was mainly due to higher margins on refined product sales and higher earnings from the 50 percent-owned Chevron Phillips Chemical Company.
Refinery crude oil input in first quarter 2022 increased 4 percent to 915,000 barrels per day from the year-ago period, as the company increased refinery runs in response to higher demand.
Refined product sales of 1.22 million barrels per day were up 16 percent from the year-ago period, mainly due to higher gasoline and jet fuel demand as travel restrictions associated with the pandemic continue to ease.

International downstream operations reported a loss of $155 million in first quarter 2022, compared with earnings of $135 million a year earlier. The decrease was mainly due to higher operating expenses, lower margins on refined product sales, and a $36 million unfavorable swing in foreign currency impacts between periods.
Refinery crude oil input of 619,000 barrels per day in first quarter 2022 increased 15 percent from the year-ago period due to higher demand.
Refined product sales of 1.33 million barrels per day in first quarter 2022 increased 5 percent from the year-ago period, mainly due to higher demand for gasoline and jet fuel as restrictions from the pandemic continue to ease.

All Other - consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.
Net charges in first quarter 2022 were $1.01 billion, compared to $978 million a year earlier. The increase in net charges between periods was mainly due to an unfavorable swing in foreign currency effects and higher employee benefit costs, partially offset by lower pension expenses.

Cash Flow from Operations - from operations in the first three months of 2022 was $8.1 billion, compared with $4.2 billion in 2021. Excluding working capital effects, cash flow from operations in the first three months of 2022 was $9.0 billion, compared with $5.1 billion in 2021.

Capital and exploratory expenditures - in the first three months of 2022 were $2.8 billion, compared with $2.5 billion in 2021. The amounts included $725 million in 2022 and $678 million in 2021 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 88 percent of the company-wide total in 2022.

Chevron Announces Quarterly Dividend
Apr. 27, 2022-- The Board of Directors of Chevron Corporation today declared a quarterly dividend of one dollar and forty-two cents ($1.42) per share, payable June 10, 2022, to all holders of common stock as shown on the transfer records of the Corporation at the close of business May 19, 2022.

Chevron Joins Global Centre for Maritime Decarbonisation
Apr. 6, 2022-- Chevron announced an agreement to join the Global Centre for Maritime Decarbonisation (GCMD). Chevron’s involvement aims to help support GCMD’s efforts to develop potentially scalable lower carbon technologies – including those that enable the use of ammonia as a maritime fuel – and the commercial means to enable their adoption.
The GCMD is an independent, non-profit organization, established with support from the Maritime and Port Authority of Singapore. It collaborates with the maritime industry, plans to conduct pilot projects and trials, and advocates for well-designed climate policies and standards.
“Shipping is a hard-to-abate sector and to reach the International Maritime Organization's climate goals, collaboration across the value chain is required,” said Professor Lynn Loo, CEO of the Global Centre for Maritime Decarbonisation. “We look forward to working with Chevron and capitalizing on its experience as a fuel producer, supplier and end user to operationalize pilots, which we believe will ultimately shorten the time to deployment and adoption of decarbonization solutions. This partnership will enable both organizations to work closely on the fuels of the future as well as carbon capture technologies, both of which are critical enablers expected to help the sector meet its net zero ambitions.”
As part of its pursuit of a lower carbon future, Chevron Shipping is continuing to explore new technologies, energy-saving devices, and lower carbon fuels, and is collaborating with industry organizations on these potential solutions.
“Lowering the carbon intensity of shipping requires fundamental changes across the entire maritime value chain,” said Mark Ross, president of Chevron Shipping Company. “This is a truly complex task that requires industry-wide collaboration, innovation, and well-designed policy. GCMD brings together knowledge and expertise to help meet this challenge. We look forward to working with our fellow partners to progress our shared lower carbon ambitions.”
In 2021, Chevron launched Chevron New Energies (CNE) to accelerate lower carbon businesses in hydrogen; carbon capture, utilization and storage; offsets; and emerging energy opportunities, as well as support Chevron’s continued focus on renewable fuels and products. As part of its strategy, CNE is focused on customers in sectors of the economy with harder to abate emissions.
“Chevron is leveraging our capabilities, assets, and customer relationships to identify opportunities to lower emissions of our own operations, while also identifying ways that essential sectors of the economy, such as the maritime industry, can achieve their lower carbon goals,” said Austin Knight, vice president of Hydrogen for Chevron New Energies. “Alongside Chevron Shipping, we look forward to collaborating with GCMD and its partners on this effort.”
About Global Centre for Maritime Decarbonisation
The Global Centre for Maritime Decarbonisation (GCMD) was formed on 1 August 2021 with funding from the Maritime & Port Authority of Singapore (MPA) and six founding partners, namely BHP, BW, DNV Foundation, Eastern Pacific Shipping, Ocean Network Express and Sembcorp Marine. The Centre’s mission is to help the maritime industry reduce its carbon emissions as quickly as possible by shaping standards, deploying solutions, financing projects, and fostering collaboration across sectors. Strategically located in Singapore, the world’s largest maritime fuelling hub and second largest container port, the Centre will coordinate regional and global decarbonisation efforts. In January, the Centre awarded its ammonia bunkering safety study to a DNV-led consortium, with Surbana Jurong and the Singapore Maritime Academy as partners. For more information, please visit www.gcformd.org.

Chevron and Restore the Earth Foundation Agree to Collaborate on Carbon Offsets Reforestation Project in Louisiana
Mar. 28, 2022-- Chevron U.S.A. Inc., through its Chevron New Energies division, and Restore the Earth Foundation, Inc. announced agreement for a reforestation project for up to 8,800 acres of property in St. Charles Parish, Louisiana.
The project will bring together Chevron and Restore the Earth Foundation to develop a nature-based solution, which is expected to remove carbon from the atmosphere and be focused on reforesting natural cypress forests and swamps in St. Charles Parish. Chevron will provide funding for Restore the Earth to plant an expected 1.7 million native bald cypress seedlings as part of the project.
“Carbon offsets are expected to play a notable role in global carbon reduction. Chevron New Energies is proud to collaborate with Restore the Earth on our inaugural carbon offsets project – bringing lower carbon solutions to Chevron as well as our customers,” said Barbara Harrison, vice president of Offsets & Emerging of Chevron New Energies. “In addition to helping remove carbon, the seedling replanting is anticipated to contribute to local forest and wetland ecosystem restoration.”
In 2021, Chevron launched Chevron New Energies to accelerate lower carbon businesses in hydrogen; carbon capture, utilization and storage (CCUS); offsets; and emerging opportunities, as well as support Chevron’s continued focus on biofuels. The St. Charles Parish cypress reforestation project is expected to generate carbon offsets that could both help offset Chevron’s carbon emissions, and also help customers achieve their lower carbon goals.
“We are excited to launch this partnership with Chevron New Energies. Restore the Earth’s landscape-scale reforestation is a nature-based solution critical to addressing climate change and provides so many additional environmental and social benefits to the region and to the nation,” said P.J. Marshall, founder and executive director, Restore the Earth Foundation, Inc. “Forward-thinking organizations like Chevron New Energies are initiating impactful and simple solutions that provide for healthy ecosystems, biodiversity, habitat and community resiliency in self-sustaining systems—taking the long-term perspective of generations, decades and centuries, providing for overall well-being, livelihood, identity and culture.”
“Partnering with Restore the Earth Foundation and Chevron to accelerate reforestation on Louisiana Wildlife and Fisheries lands helps us to reach the full potential of enhanced, sustained, protected and conserved habitat of wildlife species supporting vegetation and biodiversity on our Wildlife Management Areas,” said Jack Montoucet, Secretary of the Louisiana Department of Wildlife and Fisheries. “Additional benefits of the restored Louisiana forested wetlands include the carbon sequestration of the trees supporting climate mitigation and LDWF adaptation goals.”
“We are incredibly thankful to have Chevron as a community partner and appreciate their continued commitment to coastal restoration in St. Charles Parish,” said Matt Jewell, president of St. Charles Parish.
About Restore the Earth Foundation
Restore the Earth is a 501(c)(3) not for profit with a mission of restoring the Earth’s essential forest and wetland ecosystems. Restore the Earth knows that it is possible to go beyond just protecting our environment—it is possible to restore it. A restored environment at a landscape scale creates incredible value for ecosystems, biodiversity, habitat, communities, business and the Earth. Restore the Earth works together with partners to bring solid solutions to deliver successful restoration to meet strategic objectives. More information about Restore the Earth is available www.restoretheearth.org.

Humor Section – COVID restrictions are lifting, great time to travel….

Tripophobia…(n.) The fear of not having any travel trips currently booked.

I look forward to the day when the biggest decision I have to make is what cocktail I’m going to sip on while lying on the beach all day.

Cruise deal – buy one week, get 2 free…promo code “Corona”

You’ve never felt true fear until your passport isn’t where you think you left it.

ROADTRIP RULES
	The Driver
•	Drive
•	Focus on road
•	Don’t kill us

The Passenger
•	Navigate
•	Stay awake
•	DJ

Backseat
•	Hand out snacks
•	Complain about leg room
•	Nap

It doesn’t matter how old you are, buying snacks for a road trip should always look like an unsupervised 9-year-old was given $100.

Overpack, its why suitcases have wheels now.

Hurry up! It’s Summertime.  
No time to lose, we have to relax quickly!

In the end, we only regret the vacations we didn’t take.