Chevron Announces $18.3 Billion Capital and Exploratory Budget for 2018

SAN RAMON, Calif.–(BUSINESS WIRE)–Chevron Corporation (NYSE:CVX) today announced a 2018 capital and
exploratory spending program of $18.3 billion. This figure includes $5.5
billion for the company’s share of expenditures by affiliated companies.

“Our 2018 budget is down for the fourth consecutive year, reflecting
project completions, improved efficiencies, and investment
high-grading,” said Chairman and CEO John Watson. “We’re fully funding
our advantaged Permian Basin position and dedicating approximately
three-quarters of our spend to projects that are expected to realize
cash flow within two years.”

Watson continued, “With production currently exceeding guidance in the
Permian, our 2018 plan should deliver both strong production growth and
solid free cash flow, at prices comparable to what we’ve seen this year.”

Details of the 2018 Capital and Exploratory Spending Program include:

In the upstream business, approximately $8.7 billion is forecasted to
sustain currently producing assets, including $3.3 billion for the
Permian and $1.0 billion for other shale and tight rock investments.
Approximately $5.5 billion of the upstream program is planned for major
capital projects underway, including $3.7 billion associated with the
Future Growth Project at the Tengiz field in Kazakhstan. Global
exploration funding is expected to be about $1.1 billion. Remaining
upstream spend will be for early stage projects supporting potential
future developments.

Approximately $2.2 billion of planned capital spending is associated
with the company’s downstream businesses that refine, market and
transport fuels, and manufacture and distribute lubricants, additives
and petrochemicals.

Chevron Corporation is one of the world's leading integrated energy
companies. Through its subsidiaries that conduct business worldwide, the
company is involved in virtually every facet of the energy industry.
Chevron explores for, produces and transports crude oil and natural gas;
refines, markets and distributes transportation fuels and lubricants;
manufactures and sells petrochemicals and additives; generates power;
and develops and deploys technologies that enhance business value in
every aspect of the company's operations. Chevron is based in San Ramon,
Calif. More information about Chevron is available at www.chevron.com.

As used in this press release, the term “Chevron” and such terms as
“the company,” “the corporation,” “our,” “we” and “us” may refer to
Chevron Corporation, one or more of its consolidated subsidiaries, or to
all of them taken as a whole. All of these terms are used for
convenience only and are not intended as a precise description of any of
the separate companies, each of which manages its own affairs.

As used in this press release, the term “free cash flow” represents
“Net Cash Provided by Operating Activities” less “Capital expenditures”
and “Cash dividends – common stock” as disclosed in the Consolidated
Statement of Cash Flows.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995

This press release contains forward-looking statements relating to
Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum, chemicals
and other energy-related industries. Words or phrases such as
“anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,”
“projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,”
“pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,”
”guidance,” “focus,” “on schedule,” “on track,” “goals,” “objectives,”
“strategies,” “opportunities,” and similar expressions are intended to
identify such forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, many of which are beyond the company’s
control and are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in
such forward-looking statements. The reader should not place undue
reliance on these forward-looking statements, which speak only as of the
date of this press release. Unless legally required, Chevron undertakes
no obligation to update publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemicals margins; the company's ability to realize anticipated cost
savings and expenditure reductions; actions of competitors or
regulators; timing of exploration expenses; timing of crude oil
liftings; the competitiveness of alternate-energy sources or product
substitutes; technological developments; the results of operations and
financial condition of the company's suppliers, vendors, partners and
equity affiliates, particularly during extended periods of low prices
for crude oil and natural gas; the inability or failure of the company’s
joint-venture partners to fund their share of operations and development
activities; the potential failure to achieve expected net production
from existing and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of planned
projects; the potential disruption or interruption of the company’s
operations due to war, accidents, political events, civil unrest, severe
weather, cyber threats and terrorist acts, crude oil production quotas
or other actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond its
control; changing economic, regulatory and political environments in the
various countries in which the company operates; general domestic and
international economic and political conditions; the potential liability
for remedial actions or assessments under existing or future
environmental regulations and litigation; significant operational,
investment or product changes required by existing or future
environmental statutes and regulations, including international
agreements and national or regional legislation and regulatory measures
to limit or reduce greenhouse gas emissions; the potential liability
resulting from other pending or future litigation; the company’s future
acquisition or disposition of assets or shares or the delay or failure
of such transactions to close based on required closing conditions; the
potential for gains and losses from asset dispositions or impairments;
government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, changes in fiscal terms or restrictions on
scope of company operations; foreign currency movements compared with
the U.S. dollar; material reductions in corporate liquidity and access
to debt markets; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies; the
company's ability to identify and mitigate the risks and hazards
inherent in operating in the global energy industry; and the factors set
forth under the heading “Risk Factors” on pages 20 through 22 of the
company’s 2016 Annual Report on Form 10-K. Other unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.

Contacts

Chevron
Melissa Ritchie, 925-842-0455
[email protected]