New York, NY — Chevron Corp. says it is well-positioned to deal with difficult market conditions, given its strong balance sheet, numerous new growth projects coming onstream and a disciplined approach to cost management.
“We are continuing to execute our key strategies,” Dave O’Reilly, chairman and CEO, told the company’s annual meeting March 10, 2009, in New York. “We’re moving legacy projects to development, we’re moving resources to reserves, and we’re continuing to deliver our industry-leading exploration program. In the downstream, we’re continuing our program to improve reliability and feedstock flexibility, and we are sharply focused on reducing costs.
“For the longer term, we believe global energy demand will rise as economic growth resumes. We have more exposure to some of the top growth regions in the world,” O’Reilly explained. “Shorter term, our portfolio is relatively less exposed to sectors that are most sensitive to an economic downturn.”
George Kirkland, executive vice-president of Upstream and Gas, outlined the strong 2008 performance of the upstream and natural gas business, with record earnings, nine major capital projects completed and strong competitive performance in the key areas of earnings per barrel, cost structure and return on capital employed.
Mike Wirth, executive vice president of Global Downstream, outlined development activities at four key refineries to improve reliability and profitability. He provided additional details about ongoing efforts to streamline the company’s refined products marketing.
“We’re investing to further strengthen our superior refining assets,” Wirth said. “We are sharply focused on reducing costs and absolutely committed to sustaining our utilization improvements.”
The refinery investments include reliability, feedstock flexibility, yield improvement and energy efficiency projects at the company’s refineries in California, Mississippi and South Korea.
On the marketing side of the business, Wirth said the company will continue to streamline its lubricant product line and exit certain retail markets to reduce costs and improve returns.
Pat Yarrington, chief financial officer, outlined the company’s financial priorities. “We plan to sustain and grow our dividend and to maintain our financial strength and flexibility throughout the commodity price cycle,” she said. She emphasized the company’s strong track record of balancing current performance with future earnings growth.
More information about Chevron is available at www.chevron.com.