Chevron(CVX) - 2023 Q4 - Annual Report

Cautionary Statements Relevant to Forward-Looking Information Forward-looking statements are subject to numerous risks and uncertainties, potentially causing actual results to differ materially from forecasts Safe Harbor Provisions and Risk Factors This section outlines the safe harbor provisions for forward-looking statements, emphasizing inherent risks and uncertainties that could lead to material differences in actual outcomes - Forward-looking statements are based on management's current expectations and are subject to numerous risks and uncertainties, including changing crude oil and natural gas prices, government policies, public health crises, supply chain disruptions, and geopolitical conflicts[6] - Actual outcomes and results may differ materially from forecasts, and Chevron undertakes no obligation to update these statements unless legally required[6] PART I Item 1. Business This section provides an overview of Chevron's integrated energy and chemicals operations, strategic direction, and key upstream and downstream activities - Chevron Corporation manages investments in subsidiaries and affiliates, providing administrative, financial, management, and technology support for integrated energy and chemicals operations[8] - The company's strategic direction is to leverage strengths to safely deliver lower carbon energy, aiming for higher returns, lower carbon, and superior shareholder value[10] - Chevron aims to grow its oil and gas business, lower the carbon intensity of its operations, and expand into lower carbon businesses like renewable fuels, carbon capture, and hydrogen[10] General Development of Business Chevron operates as an integrated energy and chemicals company, with upstream and downstream segments, navigating a competitive and volatile petroleum industry - Chevron's Upstream operations include exploring, developing, producing, and transporting crude oil and natural gas, LNG, major international oil export pipelines, natural gas transportation/storage/marketing, carbon capture and storage, and a gas-to-liquids plant[8] - Downstream operations involve refining crude oil, marketing crude oil, refined products, and lubricants, manufacturing/marketing renewable fuels, transporting crude/refined products, and manufacturing/marketing commodity petrochemicals and additives[8] - The petroleum industry's profitability is influenced by crude oil, natural gas, LNG, petroleum products, and petrochemical prices, which are determined by supply and demand, OPEC+ production levels, global economic conditions, weather, energy transition pace, and government policies[9] Human Capital Management Chevron's human capital strategy focuses on employee development, diversity, and well-being, resulting in a low voluntary attrition rate in 2023 - Chevron's human capital strategy aims to engage employees to develop their full potential, fostering a culture that values diversity, inclusion, and employee engagement[12] - The voluntary attrition rate for professional employees in 2023 was 2.9%, a decrease from historical rates, reflecting the company's commitment to employee development, competitive pay, and culture[12] - Chevron Employees by Gender and Region (December 31, 2023) | Category | Female (Number) | Female (%) | Male (Number) | Male (%) | Gender data not available (Number) | Gender data not available (%) | Total (Number) | Total (%) | |:---|:---|:---|:---|:---|:---|:---|:---|:---|\ | Non-Service Station Employees | 11,000 | 27 % | 29,138 | 72 % | 74 | — % | 40,212 | 88 % | | Service Station Employees | 2,392 | 44 % | 2,011 | 37 % | 985 | 18 % | 5,388 | 12 % | | Total Employees | 13,392 | 29 % | 31,149 | 68 % | 1,059 | 2 % | 45,600 | 100 % | Description of Business and Properties Chevron's geographically diverse operations span global upstream and downstream activities, with detailed financial and operational data provided in the Consolidated Financial Statements - Chevron's upstream and downstream activities are geographically dispersed across North America, South America, Europe, Africa, Asia, and Australia[17] Upstream Operations Chevron's global upstream operations focus on crude oil and natural gas exploration and production, with significant reserves in the U.S., Australia, and Kazakhstan - Net Proved Reserve Balances (2021-2023) | Category | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Crude Oil, Condensate and Synthetic Oil — Millions of barrels | | | | | Consolidated Companies | 3,770 | 3,868 | 3,821 | | Affiliated Companies | 1,007 | 1,129 | 1,254 | | Total Crude Oil, Condensate and Synthetic Oil | 4,777 | 4,997 | 5,075 | | Natural Gas Liquids — Millions of barrels | | | | | Consolidated Companies | 1,138 | 1,002 | 935 | | Affiliated Companies | 91 | 86 | 103 | | Total Natural Gas Liquids | 1,229 | 1,088 | 1,038 | | Natural Gas — Billions of cubic feet | | | | | Consolidated Companies | 28,318 | 28,765 | 28,314 | | Affiliated Companies | 2,063 | 2,099 | 2,594 | | Total Natural Gas | 30,381 | 30,864 | 30,908 | | Oil-Equivalent — Millions of barrels | | | | | Consolidated Companies | 9,628 | 9,664 | 9,475 | | Affiliated Companies | 1,441 | 1,565 | 1,789 | | Total Oil-Equivalent | 11,069 | 11,229 | 11,264 | - At December 31, 2023, 38% of Chevron's net proved oil-equivalent reserves were in the United States, 15% in Australia, and 13% in Kazakhstan[18] - The company estimates its average worldwide oil-equivalent production in 2024 to increase four to seven percent over 2023, assuming a Brent crude oil price of $80 per barrel and including expected asset sales[23] - Net Production of Crude Oil, NGLs and Natural Gas (2022-2023) | Region | Oil-Equivalent (MBD) 2023 | Oil-Equivalent (MBD) 2022 | Crude Oil (MBD) 2023 | Crude Oil (MBD) 2022 | NGLs (MBD) 2023 | NGLs (MBD) 2022 | Natural Gas (MMCFD) 2023 | Natural Gas (MMCFD) 2022 | |:---|:---|:---|:---|:---|:---|:---|:---|:---|\ | United States | 1,349 | 1,181 | 710 | 650 | 287 | 238 | 2,112 | 1,758 | | Other Americas | 175 | 179 | 146 | 144 | 5 | 7 | 146 | 169 | | Africa | 293 | 309 | 198 | 198 | 14 | 18 | 482 | 549 | | Asia | 395 | 435 | 110 | 115 | — | — | 1,712 | 1,920 | | Australia | 488 | 482 | 40 | 42 | 2 | — | 2,678 | 2,643 | | Europe | 14 | 14 | 12 | 13 | — | — | 11 | 9 | | Total Consolidated Companies | 2,714 | 2,600 | 1,216 | 1,162 | 308 | 263 | 7,141 | 7,048 | | Affiliates | 406 | 399 | 281 | 278 | 25 | 16 | 603 | 629 | | Total Including Affiliates | 3,120 | 2,999 | 1,497 | 1,440 | 333 | 279 | 7,744 | 7,677 | United States Upstream Activities U.S. upstream activities are concentrated in key basins and the Gulf of Mexico, with a focus on Permian growth, strategic acquisitions, and lower carbon projects - Chevron is one of the largest producers in the Permian Basin, targeting one million barrels of net oil-equivalent production per day by 2025, utilizing a factory development strategy and multi-well pads[33] - In August 2023, Chevron acquired PDC Energy, Inc., adding 25,000 net acres in west Texas and 275,000 net acres in Colorado's Denver-Julesburg (DJ) Basin, making Chevron the largest oil and natural gas producer in Colorado[33] - Key Gulf of Mexico projects include the Jack and St. Malo fields (20+ years remaining life), Big Foot (30+ years remaining life), Tahiti (20+ years remaining life), and Anchor (first production expected mid-2024)[35] - Chevron holds a 50% interest in the Bayou Bend Carbon Capture and Sequestration hub, which expanded its acreage to nearly 140,000 acres in onshore southeast Texas in March 2023[35] - In September 2023, Chevron acquired a majority interest in ACES Delta, LLC, developing a green hydrogen production and storage project in Utah, with start-up expected in 2025[35] Other Americas Upstream Activities Upstream activities in Other Americas include unconventional resource development in Argentina, oil sands in Canada, and limited operations in Venezuela under U.S. licenses - In Argentina, Chevron has a 50% nonoperated interest in Loma Campana and Narambuena concessions in the Vaca Muerta shale, and a 100% operated interest in the El Trapial Field, with unconventional development ongoing[36][38] - In Canada, Chevron holds a 20% nonoperated interest in the Athabasca Oil Sands Project and associated Quest carbon capture and storage project, and nonoperated interests in the Hibernia and Hebron fields offshore Atlantic Canada[38] - Chevron is evaluating strategic opportunities for its Duvernay shale acreage in Canada and plans to commence marketing its interest in these assets in 2024[38] - In Venezuela, Chevron conducts limited activities under U.S. government licenses, with no proved reserves recognized as of December 31, 2023. Licenses for the Boscan and LL-652 fields were extended from 2026 to 2041[38] Africa Upstream Activities African upstream operations include Angola, Nigeria, and exploration in Egypt and Namibia, with a focus on LNG and gas processing facilities - In Angola, Chevron operates and holds a 39.2% interest in Block 0, with its extension approved until 2050. Construction started on the South N'Dola project in August 2023, with first oil expected in Q4 2025[39][41] - Chevron has a 36.4% shareholding in Angola LNG Limited, which operates an onshore natural gas liquefaction plant with a capacity to process 1.1 billion cubic feet of natural gas per day[41] - In Nigeria, Chevron operates and holds a 40% interest in six concessions and acreage positions in four operated and six nonoperated deepwater blocks, including the Agbami field[41] - Chevron operates the Escravos Gas Plant (680 MMCFD processing capacity) and the 33,000-barrel-per-day Escravos Gas to Liquids facility[43] Asia Upstream Activities Asian upstream activities include gas production expansion in Israel, a major project in Kazakhstan, and planned exits from Kurdistan Region of Iraq and Myanmar - In Israel, Chevron announced a final investment decision in July 2023 to install a third gathering pipeline, expected to increase gas production capacity from Leviathan field from 1.2 to nearly 1.4 billion cubic feet per day by 2025[44] - In Kazakhstan, Tengizchevroil (TCO), 50% owned by Chevron, achieved mechanical completion at the Future Growth Project (FGP) in 2023, with start-up expected in H1 2025[46] - Chevron expects to exit the Kurdistan Region of Iraq and Myanmar in 2024, having signed an agreement to sell its Myanmar assets in 2022[46] - In the Partitioned Zone between Saudi Arabia and Kuwait, drilling commenced on an exploration well in late 2023, with the concession expiring in 2046[46] Australia Upstream Activities Australia is a key LNG production hub for Chevron, with major projects like Gorgon and Wheatstone, and ongoing carbon storage evaluation - Chevron is the largest producer of LNG in Australia, operating the Gorgon and Wheatstone LNG projects offshore Western Australia[47] - The Gorgon Stage 2 project achieved first gas in May 2023, and the Jansz-Io Compression project is expected to start in 2027, with proved reserves recognized[47] - Chevron holds a 47.3% operated interest in Gorgon (15.6 million-metric-ton-per-year LNG facility) and an 80.2% interest in offshore licenses and 64.1% operated interest in LNG facilities for Wheatstone (8.9 million-metric-ton-per-year LNG facility)[47][49] - Chevron holds nonoperated working interests in three greenhouse gas assessment permits to evaluate carbon storage potential across nearly 7.8 million acres[50] United Kingdom Upstream Activities Chevron holds a nonoperated interest in the Clair field in the UK, a long-life asset with significant crude oil and natural gas production capacity - Chevron holds a 19.4% nonoperated working interest in the Clair field, located west of the Shetland Islands, with an estimated remaining production life beyond 2050[51] - The Clair Ridge project, the second development phase, has a design capacity of 120,000 barrels of crude oil and 100 million cubic feet of natural gas per day[51] Sales of Natural Gas Liquids and Natural Gas Chevron's 2023 NGL and natural gas sales averaged 376,000 and 247,000 barrels per day (U.S. and international NGLs), and 4.7 and 6.0 billion cubic feet per day (U.S. and international natural gas), respectively - U.S. and international sales of NGLs averaged 376,000 and 247,000 barrels per day, respectively, in 2023[52] - U.S. and international sales of natural gas averaged 4.7 billion and 6.0 billion cubic feet per day, respectively, in 2023, including the company's share of equity affiliates' sales[52] - Outside the U.S., major natural gas sales are from Angola, Australia, Bangladesh, Canada, Equatorial Guinea, Kazakhstan, Indonesia, Israel, Nigeria, and Thailand[52] Downstream Operations Chevron's downstream operations include refining, renewable fuels, global marketing, and chemicals, with a focus on capacity utilization and expansion into lower carbon products - At the end of 2023, Chevron's refining network had a processing capacity of 1.8 million barrels per day, with average crude unit distillation capacity utilization at 89.8% in 2023 (90.8% in U.S. refineries)[53] - Petroleum Refineries: Capacities and Inputs (2021-2023) | Location | Number | Operable Capacity (MBD) Dec 31, 2023 | Refinery Crude Oil Inputs (MBD) 2023 | Refinery Crude Oil Inputs (MBD) 2022 | Refinery Crude Oil Inputs (MBD) 2021 | |:---|:---|:---|:---|:---|:---|\ | Pascagoula, Mississippi | 1 | 369 | 346 | 320 | 333 | | El Segundo, California | 1 | 290 | 226 | 248 | 233 | | Richmond, California | 1 | 257 | 225 | 167 | 211 | | Pasadena, Texas | 1 | 85 | 83 | 77 | 76 | | Salt Lake City, Utah | 1 | 58 | 54 | 53 | 50 | | Total Consolidated Companies — United States | 5 | 1,059 | 934 | 865 | 903 | | Map Ta Phut, Thailand | 1 | 175 | 153 | 156 | 135 | | Total Consolidated Companies — International | 1 | 175 | 153 | 156 | 135 | | Affiliates (Various Locations) | 2 | 545 | 473 | 483 | 441 | | Total Including Affiliates — International | 3 | 720 | 626 | 639 | 576 | | Total Including Affiliates — Worldwide | 8 | 1,779 | 1,560 | 1,504 | 1,479 | Renewable Fuels Chevron is expanding renewable fuel production, including renewable diesel and RNG, with refinery conversions and plant expansions underway - In 2023, the El Segundo refinery in California successfully converted its diesel hydrotreater (DHT) to process 100% renewable feedstock, maintaining flexibility for traditional or renewable feedstocks[57] - Expansion work at the Geismar renewable diesel plant in Louisiana is on schedule to increase production capacity from 7,000 to 22,000 barrels per day, with full operations expected in 2024[57] - Chevron holds a 50% working interest in Bunge Chevron Ag Renewables LLC, which produces soybean oil for renewable fuels, and participates in the RNG value chain through Beyond6, LLC and dairy biomethane projects[57] Marketing Operations Chevron markets petroleum products globally under its key brands, supplying thousands of service stations and commercial aviation fuel worldwide - Chevron markets petroleum products under 'Chevron,' 'Texaco,' and 'Caltex' brands globally, supplying approximately 8,300 branded service stations in the U.S. and 5,600 internationally (including affiliates) at year-end 2023[60] - The rebranding project to transition service stations in Australia from Puma to the Caltex brand is expected to complete in 2024[60] - Chevron markets commercial aviation fuel to 57 airports worldwide and offers a wide range of lubricant and coolant products under various brand names[60] Chemicals Operations Chevron's chemicals operations include performance additives and a 50% interest in CPChem, which is advancing major integrated polymer projects globally - Chevron Oronite Company develops, manufactures, and markets performance additives for lubricating oils and fuels, operating at 11 locations worldwide[61] - Chevron owns a 50% interest in Chevron Phillips Chemical Company LLC (CPChem), which produces olefins, polyolefins, and alpha olefins, and is a supplier of aromatics and polyethylene pipe[61] - CPChem has two major integrated polymer projects under construction: the Golden Triangle Polymers Project in Orange, Texas (51% owned/operated) and the Ras Laffan Petrochemical Project in Qatar (30% nonoperated), both targeted for start-up in 2026[61] Transportation Chevron operates extensive pipeline networks and a marine fleet, including LNG vessels, with recent investments in fleet expansion and carbon intensity reduction - Chevron owns and operates a network of crude oil, natural gas, and product pipelines in the U.S. and has direct/indirect interests in other U.S. and international pipelines[64] - The company's marine fleet includes conventional crude tankers, product carriers, and LNG vessels, supporting global upstream and downstream businesses[64] - In 2023, Chevron executed contracts for two additional LNG vessels and an agreement to retrofit four existing LNG vessels with technology to reduce carbon intensity[64] Other Businesses Other businesses include technology development, IT, new energies (hydrogen, carbon capture, geothermal), and environmental protection initiatives - Chevron Technical Center conducts research, develops technology, and provides technical services, focusing on shale and tight recovery, deepwater development, lowering carbon intensity of heavy oil, renewable fuels, carbon capture, hydrogen, and geothermal energy[65] - Chevron holds over 4,400 patents for new technologies and has over 3,200 additional patents pending, making it a leading patent holder in the industry[65] - The Chevron New Energies organization is advancing the company's strategy by developing new lower carbon businesses in hydrogen, carbon capture and storage, carbon offsets, and emerging technologies like geothermal[68] - Chevron designs, operates, and maintains facilities to minimize environmental impact, with operating standards, emergency response plans, and active memberships in international oil spill response cooperatives[68] Item 1A. Risk Factors Chevron faces diverse risks including commodity price volatility, operational disruptions, acquisition integration challenges, legal liabilities, and increasing ESG pressures - Chevron's business is exposed to significant fluctuations in global crude oil prices, which can be influenced by economic conditions, production levels, geopolitical risks, and energy transition pace[70] - The company's operations are subject to disruption from natural or human causes, including severe weather, military conflicts, accidents, cyber threats, and civil unrest, which could result in operational suspensions or environmental harm[71] - The completion of the Hess Corporation acquisition is subject to regulatory and stockholder approvals, and potential challenges related to a right of first refusal provision in the Stabroek Block joint operating agreement, which could delay or prevent the transaction[73] - Chevron is subject to liability risks from litigation or government action related to hazardous materials, environmental damage, and alleged climate change impacts, with numerous lawsuits filed by U.S. cities, counties, and states[76][87] - Increasing attention to ESG matters, including climate change and sustainability, can lead to increased costs, reduced demand for hydrocarbon products, litigation, negative reputational impacts, and potential adverse effects on stock price and access to capital markets[81] Item 1B. Unresolved Staff Comments There are no unresolved staff comments to report Item 1C. Cybersecurity Chevron's cybersecurity program, integrated into ERM and aligned with NIST, protects assets from threats, with no material impact from incidents to date - Chevron's cybersecurity program is integrated into its Enterprise Risk Management (ERM) process and aligns with the National Institute of Standards and Technology (NIST) Cybersecurity Framework[85][87] - The Chief Information Security Officer (CISO) leads a global cybersecurity team, with over 20 years of experience, and reports to the Chief Information Officer (CIO)[87] - The company operates four Cyber Intelligence Centers globally, monitoring and responding to cyber threats 24/7, and conducts regular phishing tests and cybersecurity awareness training for employees[87] - To date, Chevron has not experienced a cybersecurity threat or incident that has materially affected its business strategy, results of operations, or financial condition, but acknowledges the ongoing risk of future incidents[89] Item 2. Properties This section refers to Item 1. Business and other financial notes for details on Chevron's crude oil, natural gas, refining, marketing, transportation, and chemicals properties - Details on Chevron's crude oil and natural gas properties, refining, marketing, transportation, and chemicals facilities are described in Item 1. Business[90] - Supplemental information required by Subpart 1200 of Regulation S-K is provided in Item 1 and in Tables I through VII (pages 102-114) and Note 18 Properties, Plant and Equipment[90] Item 3. Legal Proceedings Chevron is involved in several legal proceedings, primarily environmental, including settlements and ongoing negotiations for alleged violations and spills - Chevron settled alleged violations at its Richmond, California refinery with California's Bay Area Air Quality Management District for a civil penalty of $20 million, effective February 12, 2024[91] - The company is negotiating a potential resolution with the California Department of Fish and Wildlife for alleged oil spills in Kern County, California, with an expected civil penalty of $1.0 million or more[92] - Chevron is appealing a CalGEM order seeking a civil penalty of approximately $2.7 million related to seeps in the Cymric Oil Field and is in discussions for a settlement[92] - The Pasadena, Texas refinery is negotiating a potential resolution for a civil lawsuit alleging Texas Clean Air Act violations related to a fire, which may result in a civil penalty of $1.0 million or more[92] Item 4. Mine Safety Disclosures This item is not applicable to Chevron Corporation PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Chevron's common stock is listed on the NYSE, with significant share repurchases in 2023 and a 36th consecutive annual dividend increase - Chevron's common stock (CVX) is listed on the New York Stock Exchange, with approximately 100,000 stockholders of record as of February 9, 2024[94] - The company repurchased $14.9 billion of its common stock in 2023, including $11.2 billion under the $75 billion program authorized on January 25, 2023[138][168] - Share repurchases are currently restricted due to SEC regulations related to the pending Hess acquisition, with Q1 2024 repurchases expected to be around $3 billion[168] - The 2023 annual dividend was $6.04 per share, marking the 36th consecutive year of increase. In January 2024, the quarterly dividend was increased by 8% to $1.63 per share[138] - Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Values of Shares that May Yet be Purchased Under the Program (Billions of dollars) | |:---|:---|:---|:---|:---|\ | October 1 – October 31, 2023 | 9,396,099 | $162.01 | 9,396,099 | $65.7 | | November 1 – November 30, 2023 | 6,818,060 | $144.50 | 6,818,060 | $64.7 | | December 1 – December 31, 2023 | 6,180,512 | $147.74 | 6,180,512 | $63.8 | | Total October 1 – December 31, 2023 | 22,394,671 | $152.74 | 22,394,671 | | Item 6. [Reserved] This item is reserved and contains no information Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations MD&A reviews Chevron's 2023 financial performance, condition, and operations, highlighting decreased net income and sales due to lower commodity prices - Net Income Attributable to Chevron Corporation decreased from $35,465 million in 2022 to $21,369 million in 2023[119] - Sales and Other Operating Revenues decreased from $235,717 million in 2022 to $196,913 million in 2023, mainly due to lower commodity prices[119][148] - Total Upstream earnings decreased from $30,284 million in 2022 to $17,438 million in 2023, while Total Downstream earnings decreased from $8,155 million to $6,137 million[119] Key Financial Results Key financial results for 2023 show significant decreases in net income and sales due to lower commodity prices, despite increased dividends per share - Key Financial Results (2021-2023) | Metric | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Net Income (Loss) Attributable to Chevron Corporation ($MM) | $21,369 | $35,465 | $15,625 | | Basic EPS ($) | $11.41 | $18.36 | $8.15 | | Diluted EPS ($) | $11.36 | $18.28 | $8.14 | | Dividends ($) | $6.04 | $5.68 | $5.31 | | Sales and Other Operating Revenues ($MM) | $196,913 | $235,717 | $155,606 | | Return on Capital Employed (%) | 11.9 % | 20.3 % | 9.4 % | | Return on Stockholders' Equity (%) | 13.3 % | 23.8 % | 11.5 % | Earnings by Major Operating Area Earnings across all major operating areas, both U.S. and International Upstream and Downstream, declined substantially in 2023 due to lower commodity realizations - Earnings by Major Operating Area ($MM, 2021-2023) | Segment | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Upstream | | | | | United States | $4,148 | $12,621 | $7,319 | | International | $13,290 | $17,663 | $8,499 | | Total Upstream | $17,438 | $30,284 | $15,818 | | Downstream | | | | | United States | $3,904 | $5,394 | $2,389 | | International | $2,233 | $2,761 | $525 | | Total Downstream | $6,137 | $8,155 | $2,914 | | All Other | $(2,206) | $(2,974) | $(3,107) | | Net Income (Loss) Attributable to Chevron Corporation | $21,369 | $35,465 | $15,625 | - Foreign currency effects had an unfavorable impact of $224 million on net income in 2023, compared to a favorable impact of $669 million in 2022[119] Business Environment and Outlook The business environment is characterized by volatile commodity prices, climate initiatives, and geopolitical uncertainties, influencing Chevron's strategy for returns and lower carbon energy - Chevron's earnings are primarily driven by its upstream segment, with crude oil prices being the most significant factor, determined by global markets[120] - The company's strategy aims to safely deliver higher returns, lower carbon, and superior shareholder value, with a focus on growing oil and gas, lowering operational carbon intensity, and expanding lower carbon businesses[120][121] - Chevron aspires to achieve net zero for upstream production Scope 1 and 2 GHG emissions on an equity basis by 2050 and has set 2028 GHG intensity targets for oil, gas, methane, and flaring[121][123] - Planned capital spend through 2028 for lower carbon investments is approximately $10 billion, with $6.5 billion already spent since 2021, including $2.9 billion for the REG acquisition[123] - Crude prices were volatile in 2023, with Brent averaging $83/barrel (down from $101 in 2022) and WTI averaging $78/barrel (down from $95 in 2022). U.S. Henry Hub natural gas prices averaged $2.56/MCF (down from $6.36/MCF in 2022)[127][128] - Worldwide net oil-equivalent production in 2023 was 3.1 million barrels per day, 4% higher than in 2022, primarily due to the acquisition of PDC Energy, Inc. and Permian Basin growth[128] - Net proved reserves totaled 11.1 billion barrels of oil-equivalent at year-end 2023, a slight decrease from 2022, with a reserve replacement ratio of 86% in 2023[132] Noteworthy Developments Noteworthy developments include key project milestones in Angola, Australia, Israel, and Kazakhstan, strategic U.S. acquisitions, and a continued increase in annual dividends - Angola's Block 0 concession was extended through 2050[137] - First natural gas production was achieved from the Gorgon Stage 2 development in Australia[137] - Final investment decision was reached to construct a third gathering pipeline for the Leviathan reservoir in Israel, increasing gas production capacity[137] - The Future Growth Project at Tengizchevroil (Kazakhstan) achieved mechanical completion[137] - Acquired PDC Energy, adding 275,000 net acres in the DJ Basin and 25,000 net acres in the Permian Basin[137] - Acquired a majority stake in ACES Delta, LLC, developing a green hydrogen production and storage hub in Utah[137] - Announced a definitive agreement to acquire Hess Corporation[137] - The 2023 annual dividend was $6.04 per share, marking the 36th consecutive year of increase. In January 2024, the quarterly dividend was increased by 8% to $1.63 per share[138] Results of Operations 2023 results show declining earnings across all Upstream and Downstream segments, primarily due to lower commodity realizations, higher expenses, and impairment charges U.S. Upstream Results U.S. upstream earnings decreased by $8.5 billion in 2023 due to lower realizations, abandonment, and impairment charges, despite a 14% increase in net oil-equivalent production - U.S. Upstream Key Metrics (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | Earnings | $MM | $4,148 | $12,621 | $7,319 | | Net Oil-Equivalent Production | MBOED | 1,349 | 1,181 | 1,139 | | Liquids Production | MBD | 997 | 888 | 858 | | Natural Gas Production | MMCFD | 2,112 | 1,758 | 1,689 | | Liquids Realization | $/BBL | $59.19 | $76.71 | $56.06 | | Natural Gas Realization | $/MCF | $1.67 | $5.55 | $3.11 | - U.S. upstream earnings decreased by $8.5 billion in 2023, primarily due to lower realizations ($6.2 billion), $1.9 billion in abandonment and decommissioning charges, and $1.8 billion in higher impairment charges (mainly California assets)[141] - Net oil-equivalent production increased by 168,000 barrels per day (14%) in 2023, driven by the acquisition of PDC and growth in the Permian Basin[141] International Upstream Results International upstream earnings decreased by $4.4 billion in 2023, driven by lower realizations and sales volumes, despite some offsetting cost reductions and tax benefits - International Upstream Key Metrics (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | Earnings | $MM | $13,290 | $17,663 | $8,499 | | Net Oil-Equivalent Production | MBOED | 1,771 | 1,818 | 1,960 | | Liquids Production | MBD | 833 | 831 | 956 | | Natural Gas Production | MMCFD | 5,632 | 5,919 | 6,020 | | Liquids Realization | $/BBL | $71.70 | $90.71 | $64.53 | | Natural Gas Realization | $/MCF | $7.69 | $9.75 | $5.93 | - International upstream earnings decreased by $4.4 billion in 2023, primarily due to lower realizations ($7.2 billion) and lower sales volumes ($280 million)[143] - Net oil-equivalent production decreased by 47,000 barrels per day (3%) in 2023, mainly due to normal field declines, shutdowns, and lower production from the expired Erawan concession in Thailand[143] U.S. Downstream Results U.S. downstream earnings decreased by $1.5 billion in 2023 due to lower refined product margins and higher operating expenses, despite increased crude input and sales volumes - U.S. Downstream Key Metrics (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | Earnings | $MM | $3,904 | $5,394 | $2,389 | | Refinery Crude Oil Inputs | MBD | 934 | 866 | 903 | | Refined Product Sales | MBD | 1,287 | 1,228 | 1,139 | - U.S. downstream earnings decreased by $1.5 billion in 2023, primarily due to lower margins on refined product sales ($660 million), higher operating expenses ($490 million), and lower earnings from CPChem ($220 million)[144] - Refinery crude oil input increased by 68,000 barrels per day (8%), and refined product sales increased by 59,000 barrels per day (5%), driven by higher jet fuel demand and renewable fuel sales[144] International Downstream Results International downstream earnings decreased by $528 million in 2023 due to higher operating expenses and unfavorable foreign currency effects, despite increased refined product sales - International Downstream Key Metrics (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | Earnings | $MM | $2,233 | $2,761 | $525 | | Refinery Crude Oil Inputs | MBD | 626 | 639 | 576 | | Refined Product Sales | MBD | 1,445 | 1,386 | 1,315 | | Foreign currency effects | $MM | $(12) | $235 | $185 | - International downstream earnings decreased by $528 million in 2023, primarily due to higher operating expenses ($360 million) and an unfavorable foreign currency swing of $247 million[144] - Refined product sales increased by 59,000 barrels per day (4%), mainly due to higher demand for jet fuel and gasoline[144] All Other Results The 'All Other' segment's net charges decreased by $768 million in 2023, driven by lower employee benefit costs and higher interest income - All Other Net Charges (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | Net charges | $MM | $(2,206) | $(2,974) | $(3,107) | | Foreign currency effects | $MM | $(588) | $(382) | $(181) | - Net charges in the 'All Other' segment decreased by $768 million in 2023, primarily due to lower employee benefit costs and higher interest income, partially offset by an unfavorable foreign currency swing of $206 million[147] Consolidated Statement of Income The 2023 Consolidated Statement of Income shows decreased revenues and net income, primarily due to lower commodity prices, reduced affiliate income, and increased impairment charges - Consolidated Statement of Income Highlights ($MM, 2021-2023) | Category | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Sales and other operating revenues | $196,913 | $235,717 | $155,606 | | Income (loss) from equity affiliates | $5,131 | $8,585 | $5,657 | | Other income (loss) | $(1,095) | $1,950 | $1,202 | | Purchased crude oil and products | $119,196 | $145,416 | $92,249 | | Operating, selling, general and administrative expenses | $29,028 | $29,026 | $24,740 | | Exploration expense | $914 | $974 | $549 | | Depreciation, depletion and amortization | $17,326 | $16,319 | $17,925 | | Taxes other than on income | $4,220 | $4,032 | $3,963 | | Interest and debt expense | $469 | $516 | $712 | | Other components of net periodic benefit costs | $212 | $295 | $688 | | Income tax expense (benefit) | $8,173 | $14,066 | $5,950 | - Sales and other operating revenues decreased in 2023 mainly due to lower commodity prices, partially offset by higher refined product sales volumes[148] - Income from equity affiliates decreased in 2023 mainly due to lower upstream-related earnings from Tengizchevroil and Angola LNG, and lower downstream-related earnings from GS Caltex and CPChem[148] - Other income decreased in 2023 mainly due to charges related to abandonment and decommissioning obligations from previously sold oil and gas production assets in the U.S. Gulf of Mexico, an unfavorable swing in foreign currency effects, and lower gains on asset sales[148] - Depreciation, depletion and amortization expenses increased in 2023 primarily due to higher impairment charges and higher production, partially offset by lower rates[148] - Income tax expense decreased by $5.9 billion in 2023, reflecting a $20.1 billion decrease in total income before tax, primarily from lower upstream realizations and downstream margins[152] Selected Operating Data Selected operating data for 2023 indicates increased U.S. production and sales volumes, but lower realizations, while international production slightly decreased - Selected Operating Data (2021-2023) | Metric | Unit | 2023 | 2022 | 2021 | |:---|:---|:---|:---|:---|\ | U.S. Upstream | | | | | | Net Crude Oil and NGLs Production | MBD | 997 | 888 | 858 | | Net Natural Gas Production | MMCFD | 2,112 | 1,758 | 1,689 | | Net Oil-Equivalent Production | MBOED | 1,349 | 1,181 | 1,139 | | Sales of Natural Gas | MMCFD | 4,637 | 4,354 | 3,986 | | Sales of NGLs | MBD | 354 | 276 | 201 | | Liquids Realization | $/BBL | $59.19 | $76.71 | $56.06 | | Natural Gas Realization | $/MCF | $1.67 | $5.55 | $3.11 | | International Upstream | | | | | | Net Crude Oil and NGLs Production | MBD | 833 | 831 | 956 | | Net Natural Gas Production | MMCFD | 5,632 | 5,919 | 6,020 | | Net Oil-Equivalent Production | MBOED | 1,771 | 1,818 | 1,960 | | Sales of Natural Gas | MMCFD | 6,025 | 5,786 | 5,178 | | Sales of NGLs | MBD | 94 | 107 | 84 | | Liquids Realization | $/BBL | $71.70 | $90.71 | $64.53 | | Natural Gas Realization | $/MCF | $7.69 | $9.75 | $5.93 | | Worldwide Upstream Total Net Oil-Equivalent Production | MBOED | 3,120 | 2,999 | 3,099 | | U.S. Downstream | | | | | | Total Refined Product Sales | MBD | 1,287 | 1,228 | 1,139 | | Refinery Crude Oil Input | MBD | 934 | 866 | 903 | | International Downstream | | | | | | Total Refined Product Sales | MBD | 1,445 | 1,386 | 1,315 | | Refinery Crude Oil Input | MBD | 626 | 639 | 576 | Liquidity and Capital Resources Liquidity and capital resources in 2023 were impacted by lower operating cash flows, increased capital expenditures, and continued share repurchases and dividend increases - Cash provided by operating activities in 2023 was $35.6 billion, down from $49.6 billion in 2022, primarily due to lower upstream realizations and refining margins[158] - Capital expenditures totaled $15.8 billion in 2023, a 32% increase from $12.0 billion in 2022, including $450 million invested in PDC assets post-acquisition and $650 million of inorganic spend[158][169] - Total debt and finance lease liabilities decreased to $20.8 billion at year-end 2023 from $23.3 billion at year-end 2022, primarily due to repayment of long-term notes[158] - The company repurchased $14.9 billion of common stock in 2023. The Board authorized a new $75 billion repurchase program in January 2023, with $63.8 billion remaining as of December 31, 2023[138][168] - Chevron estimates 2024 capital expenditures to be approximately $16 billion, with $14 billion for upstream (two-thirds in the U.S.) and $1.5 billion for worldwide downstream[169] - Affiliate capital expenditures for 2023 were $3.5 billion, 5% higher than 2022, mainly due to CPChem's polymer projects. Affiliate Capex is expected to be $3 billion in 2024[173] Financial Ratios and Metrics 2023 financial ratios show decreased profitability and increased net leverage, with notable declines in Free Cash Flow, Interest Coverage, ROCE, and ROSE - Financial Ratios and Metrics (2021-2023) | Metric | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Current Ratio | 1.3 | 1.5 | 1.3 | | Interest Coverage Ratio | 49.0 | 79.8 | 29.0 | | Free Cash Flow ($MM) | $19,780 | $37,628 | $21,131 | | Debt Ratio (%) | 11.5 % | 12.8 % | 18.4 % | | Net Debt Ratio (%) | 7.3 % | 3.3 % | 15.6 % | | Return on Average Capital Employed (ROCE) (%) | 11.9 % | 20.3 % | 9.4 % | | Return on Average Stockholders' Equity (ROSE) (%) | 13.3 % | 23.8 % | 11.5 % | - Free Cash Flow decreased from $37,628 million in 2022 to $19,780 million in 2023[176] - The Net Debt Ratio increased from 3.3% in 2022 to 7.3% in 2023[179] Financial and Derivative Instrument Market Risk Chevron manages commodity price, foreign currency, and interest rate market risks using derivative instruments, with no material impact on financial position in 2023 - Chevron uses derivative commodity instruments (futures, swaps, options, forward contracts) to manage market risks from price volatility of crude oil, refined products, NGLs, natural gas, and LNG[182] - The results of derivative commodity activities were not material to the company's financial position, results of operations, or cash flows in 2023[182] - Market exposure positions are monitored daily by an internal Risk Control group, and the company's risk management practices are reviewed by the Board's Audit Committee[182] - At December 31, 2023, Chevron had no open foreign currency derivative contracts or interest rate swaps[182] Transactions With Related Parties Chevron conducts business with related parties, primarily equity affiliates, through agreements negotiated on an arm's-length basis - Chevron enters into business arrangements with related parties, principally equity affiliates, including long-term supply, offtake, and purchase agreements[183] - Management believes these agreements are negotiated on terms consistent with those that would have been negotiated with an unrelated party[183] Litigation and Other Contingencies Chevron faces significant litigation and contingencies, including environmental remediation, the fraudulent Ecuador lawsuit, and coastal erosion claims in Louisiana - Before-Tax Environmental Remediation Reserves ($MM, 2021-2023) | Metric | 2023 | 2022 | 2021 | |:---|:---|:---|:---| | Balance at January 1 | $868 | $960 | $1,139 | | Net additions | $327 | $182 | $114 | | Expenditures | $(259) | $(274) | $(293) | | Balance at December 31 | $936 | $868 | $960 | - The liability balance for asset retirement obligations was approximately $13.8 billion at year-end 2023, primarily related to upstream properties[187] - The Ecuadorian judgment of approximately $9.5 billion against Chevron was ruled to have been procured through fraud, bribery, and corruption by a U.S. court and an arbitral tribunal[184] - Chevron entities are defendants in 39 lawsuits filed by Louisiana coastal parishes and the State, seeking damages for coastal erosion, with one case scheduled for trial in October 2024[184] - Due to the unprecedented nature of these suits, the company is unable to estimate any range of possible liability but believes the claims lack legal and factual merit[184] Environmental Matters Chevron integrates evolving environmental regulations into its strategy, with 2023 spending of $2.5 billion, not expecting material adverse effects on liquidity - Chevron is subject to evolving international and U.S. environmental, health, and safety laws and regulations, which are integrated into its strategy and planning[188] - Worldwide environmental spending in 2023 was approximately $2.5 billion, comprising $0.5 billion in capital expenditures and $2.0 billion in costs for prevention, control, and remediation[188] - For 2024, total worldwide environmental capital expenditures are estimated at $0.5 billion[190] - While environmental costs may be significant in a single period, the company does not expect them to have a material adverse effect on its liquidity or financial position[188] Critical Accounting Estimates and Assumptions Critical accounting estimates, including oil and gas reserves, impairment, ARO, and pension plans, materially impact financial statements and can significantly alter results - Critical accounting estimates include oil and gas reserves, impairment of properties, plant and equipment (PP&E) and investments in affiliates, asset retirement obligations (ARO), pension and other postretirement benefit plans, business combinations (purchase-price allocation), and contingent losses[191][193][194][195] - Oil and gas reserves estimates impact Depreciation, Depletion and Amortization (DD&A) and asset impairment assessments. A 5% lower estimate of proved reserves would have increased UOP DD&A by approximately $600 million in 2023[191] - Impairment assessments involve management estimates on future commodity prices, operating expenses, carbon costs, and production profiles. In 2023, a portion of U.S. upstream assets, primarily in California, were impaired due to regulatory challenges[193] - Pension plan expense and obligations are based on actuarial assumptions, including expected long-term rate of return on plan assets (7.0% for U.S. primary plan in 2023) and discount rates (5.0-5.2% for U.S. primary plan in 2023)[195] New Accounting Standards Chevron is evaluating new FASB accounting standards (ASU 2023-07 and ASU 2023-09), neither of which is expected to materially affect consolidated financial statements - ASU 2023-07 (Segment Reporting Improvements), effective for fiscal years beginning after December 15, 2023, requires disclosure of significant segment expenses; Chevron does not expect a material effect[239] - ASU 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2024, requires specific categories in the income tax rate reconciliation and taxes paid per major jurisdiction; Chevron does not expect a material effect[239] Quarterly Results 2023 quarterly results show fluctuating revenues and net income, with a notable Q4 decrease compared to prior periods, while dividends per share remained consistent - Quarterly Results (2022-2023) | Metric ($MM, except per-share) | 2023 Q4 | 2023 Q3 | 2023 Q2 | 2023 Q1 | 2022 Q4 | 2022 Q3 | 2022 Q2 | 2022 Q1 | |:---|:---|:---|:---|:---|:---|:---|:---|:---|\ | Sales and other operating revenues | $48,933 | $51,922 | $47,216 | $48,842 | $54,523 | $63,508 | $65,372 | $52,314 | | Income from equity affiliates | $990 | $1,313 | $1,240 | $1,588 | $1,623 | $2,410 | $2,467 | $2,085 | | Other income (loss) | $(2,743) | $845 | $440 | $363 | $327 | $726 | $923 | $(26) | | Total Revenues and Other Income | $47,180 | $54,080 | $48,896 | $50,793 | $56,473 | $66,644 | $68,762 | $54,373 | | Purchased crude oil and products | $28,477 | $32,328 | $28,984 | $29,407 | $32,570 | $38,751 | $40,684 | $33,411 | | Operating expenses | $6,510 | $6,299 | $6,057 | $6,021 | $6,401 | $6,357 | $6,318 | $5,638 | | Selling, general and administrative expenses | $969 | $1,163 | $1,128 | $881 | $1,454 | $1,028 | $863 | $967 | | Exploration expenses | $254 | $301 | $169 | $190 | $453 | $116 | $196 | $209 | | Depreciation, depletion and amortization | $6,254 | $4,025 | $3,521 | $3,526 | $4,764 | $4,201 | $3,700 | $3,654 | | Taxes other than on income | $1,062 | $1,021 | $1,041 | $1,096 | $864 | $1,046 | $882 | $1,240 | | Interest and debt expense | $120 | $114 | $120 | $115 | $123 | $128 | $129 | $136 | | Other components of net periodic benefit costs | $44 | $91 | $39 | $38 | $36 | $208 | $(13) | $64 | | Total Costs and Other Deductions | $43,690 | $45,342 | $41,059 | $41,274 | $46,665 | $51,835 | $52,759 | $45,319 | | Income (Loss) Before Income Tax Expense | $3,490 | $8,738 | $7,837 | $9,519 | $9,808 | $14,809 | $16,003 | $9,054 | | Income Tax Expense (Benefit) | $1,247 | $2,183 | $1,829 | $2,914 | $3,430 | $3,571 | $4,288 | $2,777 | | Net Income (Loss) | $2,243 | $6,555 | $6,008 | $6,605 | $6,378 | $11,238 | $11,715 | $6,277 | | Net Income (Loss) Attributable to Chevron Corporation | $2,259 | $6,526 | $6,010 | $6,574 | $6,353 | $11,231 | $11,622 | $6,259 | | Basic EPS | $1.23 | $3.48 | $3.22 | $3.48 | $3.34 | $5.81 | $5.98 | $3.23 | | Diluted EPS | $1.22 | $3.48 | $3.20 | $3.46 | $3.33 | $5.78 | $5.95 | $3.22 | | Dividends per share | $1.51 | $1.51 | $1.51 | $1.51 | $1.42 | $1.42 | $1.42 | $1.42 | Item 7A. Quantitative and Qualitative Disclosures About Market Risk This section refers to MD&A and Note 10 for disclosures on Chevron's interest rate, foreign currency, and commodity price market risks - Discussion of interest rate, foreign currency, and commodity price market risk is contained in Management's Discussion and Analysis of Financial Condition and Results of Operations — Financial and Derivative Instruments and in Note 10 Financial and Derivative Instruments[97] Item 8. Financial Statements and Supplementary Data This item refers to the Financial Table of Contents for the index to Chevron's Financial Statements and Supplementary Data - The index to Financial Statements and Supplementary Data is presented in the Financial Table of Contents[98] Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure There are no changes in or disagreements with accountants on accounting and financial disclosure to report Item 9A. Controls and Procedures Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, excluding the recently acquired PDC Energy - Management concluded that Chevron's disclosure controls and procedures were effective as of December 31, 2023[99] - Management also concluded that internal control over financial reporting was effective as of December 31, 2023, based on the COSO framework[99] - PDC Energy, Inc., acquired in 2023, was excluded from the assessment of internal control over financial reporting, representing 5% of total assets and 1% of total revenues[99][100] Item 9B. Other Information This section discloses Rule 10b5-1 Plan Elections by executive officers for potential stock option exercises and sales, entered into in November 2023 - Michael K. Wirth (Chairman and CEO) entered a pre-arranged stock trading plan on November 22, 2023, for the potential exercise of vested stock options and sale of up to 404,500 shares between February 27, 2024, and January 28, 2025[101] - R. Hewitt Pate (VP and General Counsel) and Alana K. Knowles (VP and Controller) also entered similar plans in November 2023 for the potential exercise and sale of 250,742 and 17,534 shares, respectively[101] - These trading plans were entered during an open insider trading window and are intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934[101] Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections This item is not applicable to Chevron Corporation PART III Item 10. Directors, Executive Officers and Corporate Governance This section details Chevron's Executive Officers as of February 26, 2024, and incorporates director and corporate governance information by reference from the 2024 Proxy Statement - Chevron Corporation Executive Officers (February 26, 2024) | Name | Age | Current and Prior Positions (up to five years) | Primary Areas of Responsibility | |:---|:---|:---|:---|\ | Michael K. Wirth | 63 | Chairman of the Board and Chief Executive Officer (since Feb 2018) | Chairman of the Board and Chief Executive Officer | | Pierre R. Breber | 59 | Vice President and Chief Financial Officer (since Apr 2019); Executive Vice President, Downstream (Jan 2016 - Mar 2019) | Finance; Investor Relations | | Mark A. Nelson | 60 | Vice Chairman (since Feb 2023); Executive Vice President, Strategy, Policy & Development (Oct 2022 - Sept 2023); Executive Vice President, Downstream (Mar 2019 - Sep 2022); Vice President, Midstream, Strategy and Policy (Feb 2018 - Feb 2019) | Strategy & Sustainability; Corporate Affairs; Corporate Business Development; Procurement/Supply Chain Management; Information Technology | | A. Nigel Hearne | 56 | Executive Vice President, Oil, Products & Gas (since Oct 2022); President, Chevron Eurasia Pacific Exploration & Production (July 2020 - Oct 2022); President, Chevron Asia Pacific Exploration & Production (Jan 2019 - June 2020) | Upstream - Worldwide Exploration and Production; Downstream - Worldwide Manufacturing, Marketing, Lubricants, and Chemicals; Midstream - Worldwide; Asset Performance and Process Safety; Health, Safety and Environment | | Eimear P. Bonner | 49 | Vice President (since Aug 2021); President and Chief Technology Officer, Chevron Technical Center (Feb 2021 - Dec 2023); General Director, Tengizchevroil (Dec 2018 - Jan 2021) | Finance; Investor Relations (Effective March 1, 2024, Ms. Bonner will assume the position of Vice President and Chief Financial Officer) | | Jeff B. Gustavson | 51 | Vice President, Lower Carbon Energies (since Aug 2021); Vice President, Midcontinent (Feb 2018 - July 2021) | Lower Carbon Solutions | | Balaji Krishnamurthy | 47 | Vice President (since Oct 2022); Vice President, Chevron Technical Center (since Jan 2024); Vice President, Strategy & Sustainability (Oct 2022 - Sept 2023); President, Chevron Canada Limited (June 2021 - Sept 2022); General Manager, Corporate Transformation and Integration Management (Dec 2019 - May 2021); Deputy Managing Director, Eurasia Business Unit (June 2018 - Dec 2019) | Subsurface; Global Reserves; Wells; Facilities Designs and Solutions; Capital Projects; Downstream Technology | | Rhonda J. Morris | 58 | Vice President and Chief Human Resources Officer (since Feb 2019) | Human Resources; Diversity and Inclusion | | R. Hewitt Pate | 61 | Vice President and General Counsel (since Aug 2009) | Law, Governance and Compliance | - Information about directors and corporate governance is incorporated by reference from the 2024 Proxy Statement[106] Item 11. Executive Compensation This section incorporates executive and director compensation information, including the CEO pay ratio, by reference from the 2024 Proxy Statement - Information on executive compensation, director compensation, and CEO pay ratio is incorporated by reference from the 2024 Proxy Statement[110] - The Management Compensation Committee Report is incorporated by reference but is not deemed 'soliciting material' or 'filed' with the SEC, nor subject to Section 18 liabilities of the Exchange Act[110] Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters This section incorporates security ownership and equity compensation plan information by reference from the 2024 Proxy Statement - Information on security ownership of certain beneficial owners and management is incorporated by reference from the 2024 Proxy Statement[111] - Equity compensation plan information is also incorporated by reference from the 2024 Proxy Statement[111] Item 13. Certain Relationships and Related Transactions, and Director Independence This section incorporates information on related person transactions and director independence by reference from the 2024 Proxy Statement - Information on related person transactions and director independence is incorporated by reference from the 2024 Proxy Statement[112] Item 14. Principal Accountant Fees and Services This section incorporates information on principal accountant fees and services by reference from the 2024 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement, specifically the 'Board Proposal to Ratify PricewaterhouseCoopers LLP as the Independent Registered Public Accounting Firm for 2024' section[113] PART IV Item 15. Exhibit and Financial Statement Schedules This section lists financial statements, schedules, and a comprehensive Exhibit Index, detailing various agreements, policies, and certifications filed with the report - Financial Statements Included in Report | Document | Page(s) | |:---|:---|\ | Report of Independent Registered Public Accounting Firm — PricewaterhouseCoopers LLP | 60 | | Consolidated Statement of Income for the three years ended December 31, 2023 | 62 | | Consolidated Statement of Comprehensive Income for the three years ended December 31, 2023 | 63 | | Consolidated Balance Sheet at December 31, 2023 and 2022 | 64 | | Consolidated Statement of Cash Flows for the three years ended December 31, 2023 | 65 | | Consolidated Statement of Equity for the three years end