|
Delaware
|
|
94-0890210
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
6001 Bollinger Canyon Road,
San Ramon, California
|
|
94583-2324
(Zip Code)
|
(Address of principal executive offices)
|
|
|
Large accelerated filer
þ
|
|
Accelerated filer
o
|
|||||
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
|
|||||
Smaller reporting company
o
|
|
Emerging growth company
o
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Class
|
|
Outstanding as of March 31, 2018
|
Common stock, $.75 par value
|
|
1,910,956,734
|
|
|
|
Page No.
|
|
||
PART I
FINANCIAL INFORMATION
|
||
Item 1.
|
|
|
|
Consolidated Statement of Income for the Three Months Ended March 31, 2018, and 2017
|
|
|
Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2018, and 2017
|
|
|
Consolidated Balance Sheet at March 31, 2018, and December 31, 2017
|
|
|
Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2018, and 2017
|
|
|
7-25
|
|
Item 2.
|
26-38
|
|
Item 3.
|
||
Item 4.
|
||
PART II
OTHER INFORMATION
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 5.
|
Other Information
|
|
Item 6.
|
||
Item 1.
|
Consolidated Financial Statements
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars, except per-share amounts)
|
||||||
Revenues and Other Income
|
|
||||||
Sales and other operating revenues
1
|
$
|
35,968
|
|
|
$
|
31,524
|
|
Income from equity affiliates
|
1,637
|
|
|
1,150
|
|
||
Other income
|
159
|
|
|
747
|
|
||
Total Revenues and Other Income
|
37,764
|
|
|
33,421
|
|
||
Costs and Other Deductions
|
|
|
|
||||
Purchased crude oil and products
|
21,233
|
|
|
17,506
|
|
||
Operating expenses
2
|
4,701
|
|
|
4,586
|
|
||
Selling, general and administrative expenses
2
|
723
|
|
|
810
|
|
||
Exploration expenses
|
158
|
|
|
144
|
|
||
Depreciation, depletion and amortization
|
4,289
|
|
|
4,194
|
|
||
Taxes other than on income
1
|
1,344
|
|
|
2,871
|
|
||
Interest and debt expense
|
159
|
|
|
51
|
|
||
Other components of net periodic benefit costs
2
|
84
|
|
|
130
|
|
||
Total Costs and Other Deductions
|
32,691
|
|
|
30,292
|
|
||
Income Before Income Tax Expense
|
5,073
|
|
|
3,129
|
|
||
Income Tax Expense
|
1,414
|
|
|
430
|
|
||
Net Income
|
3,659
|
|
|
2,699
|
|
||
Less: Net income attributable to noncontrolling interests
|
21
|
|
|
17
|
|
||
Net Income Attributable to Chevron Corporation
|
$
|
3,638
|
|
|
$
|
2,682
|
|
Per Share of Common Stock:
|
|
|
|
||||
Net Income Attributable to Chevron Corporation
|
|
|
|
||||
— Basic
|
$
|
1.92
|
|
|
$
|
1.43
|
|
— Diluted
|
$
|
1.90
|
|
|
$
|
1.41
|
|
Dividends
|
$
|
1.12
|
|
|
$
|
1.08
|
|
Weighted Average Number of Shares Outstanding (000s)
|
|
|
|
||||
— Basic
|
1,895,990
|
|
|
1,879,372
|
|
||
— Diluted
|
1,913,218
|
|
|
1,895,393
|
|
||
____________________
|
|
|
|
||||
1
2017 includes excise, value-added and similar taxes of $1,677 million collected on behalf of third parties. Beginning in 2018, these taxes are netted in "Taxes other than on income" in accordance with ASU 2014-09. Refer to Note 17, "Revenue" beginning on page 24.
|
|
|
|||||
2
2017 adjusted to conform to ASU 2017-07. Refer to Note 5, "New Accounting Standards" on page 10.
|
|
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Net Income
|
$
|
3,659
|
|
|
$
|
2,699
|
|
Currency translation adjustment
|
10
|
|
|
14
|
|
||
Unrealized holding (loss) gain on securities:
|
|
|
|
||||
Net (loss) gain arising during period
|
(1
|
)
|
|
(5
|
)
|
||
Defined benefit plans:
|
|
|
|
||||
Actuarial gain (loss):
|
|
|
|
||||
Amortization to net income of net actuarial and settlement losses
|
157
|
|
|
171
|
|
||
Actuarial (loss) gain arising during period
|
(1
|
)
|
|
(14
|
)
|
||
Prior service cost:
|
|
|
|
||||
Amortization to net income of net prior service costs
|
(4
|
)
|
|
(5
|
)
|
||
Defined benefit plans sponsored by equity affiliates
|
8
|
|
|
6
|
|
||
Income tax expense on defined benefit plans
|
(39
|
)
|
|
(50
|
)
|
||
Total
|
121
|
|
|
108
|
|
||
Other Comprehensive Gain, Net of Tax
|
130
|
|
|
117
|
|
||
Comprehensive Income
|
3,789
|
|
|
2,816
|
|
||
Comprehensive income attributable to noncontrolling interests
|
(21
|
)
|
|
(17
|
)
|
||
Comprehensive Income Attributable to Chevron Corporation
|
$
|
3,768
|
|
|
$
|
2,799
|
|
|
|
At March 31
2018 |
|
At December 31
2017 |
||||
|
|
(Millions of dollars)
|
||||||
ASSETS
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
6,466
|
|
|
$
|
4,813
|
|
Marketable securities
|
|
38
|
|
|
9
|
|
||
Accounts and notes receivable, net
|
|
15,771
|
|
|
15,353
|
|
||
Inventories
|
|
|
|
|
||||
Crude oil and petroleum products
|
|
3,705
|
|
|
3,142
|
|
||
Chemicals
|
|
475
|
|
|
476
|
|
||
Materials, supplies and other
|
|
1,948
|
|
|
1,967
|
|
||
Total inventories
|
|
6,128
|
|
|
5,585
|
|
||
Prepaid expenses and other current assets
|
|
3,323
|
|
|
2,800
|
|
||
Total Current Assets
|
|
31,726
|
|
|
28,560
|
|
||
Long-term receivables, net
|
|
2,723
|
|
|
2,849
|
|
||
Investments and advances
|
|
33,470
|
|
|
32,497
|
|
||
Properties, plant and equipment, at cost
|
|
344,977
|
|
|
344,485
|
|
||
Less: Accumulated depreciation, depletion and amortization
|
|
169,131
|
|
|
166,773
|
|
||
Properties, plant and equipment, net
|
|
175,846
|
|
|
177,712
|
|
||
Deferred charges and other assets
|
|
6,946
|
|
|
7,017
|
|
||
Goodwill
|
|
4,531
|
|
|
4,531
|
|
||
Assets held for sale
|
|
1,200
|
|
|
640
|
|
||
Total Assets
|
|
$
|
256,442
|
|
|
$
|
253,806
|
|
LIABILITIES AND EQUITY
|
|
|
||||||
Short-term debt
|
|
$
|
8,601
|
|
|
$
|
5,192
|
|
Accounts payable
|
|
14,479
|
|
|
14,565
|
|
||
Accrued liabilities
|
|
4,587
|
|
|
5,267
|
|
||
Federal and other taxes on income
|
|
1,867
|
|
|
1,600
|
|
||
Other taxes payable
|
|
1,096
|
|
|
1,113
|
|
||
Total Current Liabilities
|
|
30,630
|
|
|
27,737
|
|
||
Long-term debt
|
|
31,054
|
|
|
33,477
|
|
||
Capital lease obligations
|
|
90
|
|
|
94
|
|
||
Deferred credits and other noncurrent obligations
|
|
20,674
|
|
|
21,106
|
|
||
Noncurrent deferred income taxes
|
|
15,082
|
|
|
14,652
|
|
||
Noncurrent employee benefit plans
|
|
7,346
|
|
|
7,421
|
|
||
Total Liabilities*
|
|
104,876
|
|
|
104,487
|
|
||
Preferred stock (authorized 100,000,000 shares, $1.00 par value, none issued)
|
|
—
|
|
|
—
|
|
||
Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at March 31, 2018, and December 31, 2017)
|
|
1,832
|
|
|
1,832
|
|
||
Capital in excess of par value
|
|
16,963
|
|
|
16,848
|
|
||
Retained earnings
|
|
175,619
|
|
|
174,106
|
|
||
Accumulated other comprehensive loss
|
|
(3,459
|
)
|
|
(3,589
|
)
|
||
Deferred compensation and benefit plan trust
|
|
(240
|
)
|
|
(240
|
)
|
||
Treasury stock, at cost (531,719,846 and 537,974,695 shares at March 31, 2018, and December 31, 2017, respectively)
|
|
(40,359
|
)
|
|
(40,833
|
)
|
||
Total Chevron Corporation Stockholders’ Equity
|
|
150,356
|
|
|
148,124
|
|
||
Noncontrolling interests
|
|
1,210
|
|
|
1,195
|
|
||
Total Equity
|
|
151,566
|
|
|
149,319
|
|
||
Total Liabilities and Equity
|
|
$
|
256,442
|
|
|
$
|
253,806
|
|
____________________
|
|
|
|
|
||||
* Refer to Note 14, "Other Contingencies and Commitments" beginning on page 20.
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Operating Activities
|
|
|
|
||||
Net Income
|
$
|
3,659
|
|
|
$
|
2,699
|
|
Adjustments
|
|
|
|
||||
Depreciation, depletion and amortization
|
4,289
|
|
|
4,194
|
|
||
Dry hole expense
|
45
|
|
|
7
|
|
||
Distributions less than income from equity affiliates
1
|
(998
|
)
|
|
(658
|
)
|
||
Net before-tax gains on asset retirements and sales
|
(12
|
)
|
|
(764
|
)
|
||
Net foreign currency effects
|
63
|
|
|
131
|
|
||
Deferred income tax provision
|
383
|
|
|
(563
|
)
|
||
Net increase in operating working capital
2
|
(2,104
|
)
|
|
(1,052
|
)
|
||
Decrease in long-term receivables
|
128
|
|
|
20
|
|
||
Net increase in other deferred charges
2
|
(12
|
)
|
|
(33
|
)
|
||
Cash contributions to employee pension plans
|
(149
|
)
|
|
(170
|
)
|
||
Other
|
(249
|
)
|
|
(34
|
)
|
||
Net Cash Provided by Operating Activities
1, 2
|
5,043
|
|
|
3,777
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(2,997
|
)
|
|
(3,315
|
)
|
||
Proceeds and deposits related to asset sales and returns of investment
1, 2
|
111
|
|
|
1,846
|
|
||
Net (purchases) sales of marketable securities
|
(29
|
)
|
|
2
|
|
||
Net repayment (borrowing) of loans by equity affiliates
|
26
|
|
|
(6
|
)
|
||
Net Cash Used for Investing Activities
1, 2
|
(2,889
|
)
|
|
(1,473
|
)
|
||
Financing Activities
|
|
|
|
||||
Net borrowings (repayments) of short-term obligations
|
3,214
|
|
|
(3,928
|
)
|
||
Proceeds from issuance of long-term debt
|
73
|
|
|
3,994
|
|
||
Repayments of long-term debt and other financing obligations
|
(2,331
|
)
|
|
(966
|
)
|
||
Cash dividends — common stock
|
(2,124
|
)
|
|
(2,029
|
)
|
||
Distributions to noncontrolling interests
|
(11
|
)
|
|
—
|
|
||
Net sales of treasury shares
|
566
|
|
|
245
|
|
||
Net Cash Used for Financing Activities
|
(613
|
)
|
|
(2,684
|
)
|
||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
2
|
33
|
|
|
39
|
|
||
Net Change in Cash, Cash Equivalents and Restricted Cash
2
|
1,574
|
|
|
(341
|
)
|
||
Cash, Cash Equivalents and Restricted Cash at January 1
2
|
5,943
|
|
|
8,414
|
|
||
Cash, Cash Equivalents and Restricted Cash at March 31
2
|
$
|
7,517
|
|
|
$
|
8,073
|
|
____________________
|
|
|
|
||||
1
2017 adjusted to conform to Accounting Standards Update 2016-15. Refer to Note 4, "Information Relating to the Consolidated Statement of Cash Flows" beginning on page 8.
|
|||||||
2
2017 adjusted to conform to Accounting Standards Update 2016-18. Refer to Note 4, "Information Relating to the Consolidated Statement of Cash Flows" beginning on page 8.
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
|
Currency Translation Adjustment
|
|
Unrealized Holding Gains (Losses) on Securities
|
|
Derivatives
|
|
Defined Benefit Plans
|
|
Total
|
||||||||||
|
|
(Millions of dollars)
|
||||||||||||||||||
Balance at January 1
|
|
$
|
(105
|
)
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3,477
|
)
|
|
$
|
(3,589
|
)
|
Components of Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||||||
Before Reclassifications
|
|
10
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
14
|
|
|||||
Reclassifications
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
116
|
|
|||||
Net Other Comprehensive Income (Loss)
|
|
10
|
|
|
(1
|
)
|
|
—
|
|
|
121
|
|
|
130
|
|
|||||
Balance at March 31
|
|
$
|
(95
|
)
|
|
$
|
(6
|
)
|
|
$
|
(2
|
)
|
|
$
|
(3,356
|
)
|
|
$
|
(3,459
|
)
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Chevron
Corporation
Stockholders’ Equity
|
|
Non-controlling
Interest
|
|
Total
Equity
|
|
Chevron
Corporation
Stockholders’ Equity
|
|
Non-controlling
Interest
|
|
Total
Equity
|
||||||||||||
|
(Millions of dollars)
|
||||||||||||||||||||||
Balance at January 1
|
$
|
148,124
|
|
|
$
|
1,195
|
|
|
$
|
149,319
|
|
|
$
|
145,556
|
|
|
$
|
1,166
|
|
|
$
|
146,722
|
|
Net income
|
3,638
|
|
|
21
|
|
|
3,659
|
|
|
2,682
|
|
|
17
|
|
|
2,699
|
|
||||||
Dividends
|
(2,124
|
)
|
|
—
|
|
|
(2,124
|
)
|
|
(2,030
|
)
|
|
—
|
|
|
(2,030
|
)
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Treasury shares, net
|
474
|
|
|
—
|
|
|
474
|
|
|
231
|
|
|
—
|
|
|
231
|
|
||||||
Other changes, net*
|
244
|
|
|
5
|
|
|
249
|
|
|
153
|
|
|
15
|
|
|
168
|
|
||||||
Balance at March 31
|
$
|
150,356
|
|
|
$
|
1,210
|
|
|
$
|
151,566
|
|
|
$
|
146,592
|
|
|
$
|
1,198
|
|
|
$
|
147,790
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
(Increase) decrease in accounts and notes receivable
|
$
|
(335
|
)
|
|
$
|
317
|
|
Increase in inventories
|
(543
|
)
|
|
(550
|
)
|
||
(Increase) decrease in prepaid expenses and other current assets
1
|
(608
|
)
|
|
26
|
|
||
Decrease in accounts payable and accrued liabilities
1
|
(807
|
)
|
|
(1,090
|
)
|
||
Increase in income and other taxes payable
|
189
|
|
|
245
|
|
||
Net increase in operating working capital
1
|
$
|
(2,104
|
)
|
|
$
|
(1,052
|
)
|
____________________
|
|
|
|
||||
1
2017 adjusted to conform to Accounting Standards Update 2016-18.
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Interest on debt (net of capitalized interest)
|
$
|
105
|
|
|
$
|
—
|
|
Income taxes
|
843
|
|
|
494
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Marketable securities purchased
|
$
|
(29
|
)
|
|
$
|
—
|
|
Marketable securities sold
|
—
|
|
|
2
|
|
||
Net (purchases) sales of marketable securities
|
$
|
(29
|
)
|
|
$
|
2
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Borrowing of loans by equity affiliates
|
$
|
—
|
|
|
$
|
(70
|
)
|
Repayment of loans by equity affiliates
|
26
|
|
|
64
|
|
||
Net repayment (borrowing) of loans by equity affiliates
|
$
|
26
|
|
|
$
|
(6
|
)
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Repayments of short-term obligations
|
$
|
(1,377
|
)
|
|
$
|
(2,952
|
)
|
Proceeds from issuances of short-term obligations
|
658
|
|
|
3,415
|
|
||
Net borrowings of short-term obligations with three months or less maturity
|
3,933
|
|
|
(4,391
|
)
|
||
Net borrowings (repayments) of short-term obligations
|
$
|
3,214
|
|
|
$
|
(3,928
|
)
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Additions to properties, plant and equipment
|
$
|
2,937
|
|
|
$
|
3,305
|
|
Additions to investments
|
15
|
|
|
3
|
|
||
Current year dry hole expenditures
|
45
|
|
|
7
|
|
||
Capital expenditures
|
2,997
|
|
|
3,315
|
|
||
Expensed exploration expenditures
|
113
|
|
|
137
|
|
||
Assets acquired through capital lease obligations
|
—
|
|
|
1
|
|
||
Capital and exploratory expenditures, excluding equity affiliates
|
3,110
|
|
|
3,453
|
|
||
Company’s share of expenditures by equity affiliates
|
1,295
|
|
|
939
|
|
||
Capital and exploratory expenditures, including equity affiliates
|
$
|
4,405
|
|
|
$
|
4,392
|
|
|
|
At March 31
|
|
At December 31
|
||||||||||||
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
||||||||
|
|
(Millions of dollars)
|
|
(Millions of dollars)
|
||||||||||||
Cash and Cash Equivalents
|
|
$
|
6,466
|
|
|
$
|
6,983
|
|
|
$
|
4,813
|
|
|
$
|
6,988
|
|
Restricted cash included in "Prepaid expenses and other current assets"
|
|
316
|
|
|
306
|
|
|
405
|
|
|
488
|
|
||||
Restricted cash included in "Deferred charges and other assets"
|
|
735
|
|
|
784
|
|
|
725
|
|
|
938
|
|
||||
Total Cash, Cash Equivalents and Restricted Cash
|
|
$
|
7,517
|
|
|
$
|
8,073
|
|
|
$
|
5,943
|
|
|
$
|
8,414
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31 |
||||||
Segment Earnings
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Upstream
|
|
|
|
||||
United States
|
$
|
648
|
|
|
$
|
80
|
|
International
|
2,704
|
|
|
1,437
|
|
||
Total Upstream
|
3,352
|
|
|
1,517
|
|
||
Downstream
|
|
|
|
||||
United States
|
442
|
|
|
469
|
|
||
International
|
286
|
|
|
457
|
|
||
Total Downstream
|
728
|
|
|
926
|
|
||
Total Segment Earnings
|
4,080
|
|
|
2,443
|
|
||
All Other
|
|
|
|
||||
Interest expense
|
(149
|
)
|
|
(43
|
)
|
||
Interest income
|
19
|
|
|
15
|
|
||
Other
|
(312
|
)
|
|
267
|
|
||
Net Income Attributable to Chevron Corporation
|
$
|
3,638
|
|
|
$
|
2,682
|
|
Segment Assets
|
At March 31
2018 |
|
At December 31
2017 |
||||
|
(Millions of dollars)
|
||||||
Upstream
|
|
|
|
||||
United States
|
$
|
41,791
|
|
|
$
|
40,770
|
|
International
|
159,071
|
|
|
159,612
|
|
||
Goodwill
|
4,531
|
|
|
4,531
|
|
||
Total Upstream
|
205,393
|
|
|
204,913
|
|
||
Downstream
|
|
|
|
||||
United States
|
23,862
|
|
|
23,202
|
|
||
International
|
17,200
|
|
|
17,434
|
|
||
Total Downstream
|
41,062
|
|
|
40,636
|
|
||
Total Segment Assets
|
246,455
|
|
|
245,549
|
|
||
All Other
|
|
|
|
||||
United States
|
5,682
|
|
|
4,938
|
|
||
International
|
4,305
|
|
|
3,319
|
|
||
Total All Other
|
9,987
|
|
|
8,257
|
|
||
Total Assets — United States
|
71,335
|
|
|
68,910
|
|
||
Total Assets — International
|
180,576
|
|
|
180,365
|
|
||
Goodwill
|
4,531
|
|
|
4,531
|
|
||
Total Assets
|
$
|
256,442
|
|
|
$
|
253,806
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Sales and other operating revenues
*
|
$
|
28,058
|
|
|
$
|
24,408
|
|
Costs and other deductions
*
|
27,596
|
|
|
24,099
|
|
||
Net income attributable to CUSA
|
697
|
|
|
421
|
|
||
_____________________________
|
|
|
|
||||
*
2017 includes excise, value-added and similar taxes collected on behalf of third parties of $1,207 million. Beginning in
2018, these taxes are netted in "Taxes other than on income" in accordance with ASU 2014-09.
|
|
At March 31
2018 |
|
At December 31
2017 |
||||
|
(Millions of dollars)
|
||||||
Current assets
|
$
|
13,406
|
|
|
$
|
12,163
|
|
Other assets
|
55,482
|
|
|
54,994
|
|
||
Current liabilities
|
17,606
|
|
|
17,379
|
|
||
Other liabilities
|
12,623
|
|
|
12,541
|
|
||
Total CUSA net equity
|
$
|
38,659
|
|
|
$
|
37,237
|
|
Memo: Total debt
|
$
|
3,050
|
|
|
$
|
3,056
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Sales and other operating revenues
|
$
|
4,325
|
|
|
$
|
3,395
|
|
Costs and other deductions
|
1,942
|
|
|
1,754
|
|
||
Net income attributable to TCO
|
1,679
|
|
|
1,158
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Sales and other operating revenues
|
$
|
2,577
|
|
|
$
|
2,445
|
|
Costs and other deductions
|
2,151
|
|
|
2,019
|
|
||
Net income attributable to CPChem
|
585
|
|
|
503
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Pension Benefits
|
|
|
|
||||
United States
|
|
|
|
||||
Service cost
|
$
|
120
|
|
|
$
|
122
|
|
Interest cost
|
92
|
|
|
91
|
|
||
Expected return on plan assets
|
(159
|
)
|
|
(149
|
)
|
||
Amortization of prior service credits
|
1
|
|
|
(1
|
)
|
||
Amortization of actuarial losses
|
76
|
|
|
85
|
|
||
Settlement losses
|
66
|
|
|
78
|
|
||
Total United States
|
196
|
|
|
226
|
|
||
International
|
|
|
|
||||
Service cost
|
40
|
|
|
37
|
|
||
Interest cost
|
46
|
|
|
53
|
|
||
Expected return on plan assets
|
(66
|
)
|
|
(58
|
)
|
||
Amortization of prior service costs
|
2
|
|
|
3
|
|
||
Amortization of actuarial losses
|
11
|
|
|
9
|
|
||
Settlement losses
|
—
|
|
|
—
|
|
||
Total International
|
33
|
|
|
44
|
|
||
Net Periodic Pension Benefit Costs
|
$
|
229
|
|
|
$
|
270
|
|
Other Benefits*
|
|
|
|
||||
Service cost
|
$
|
13
|
|
|
$
|
8
|
|
Interest cost
|
21
|
|
|
23
|
|
||
Amortization of prior service costs
|
(7
|
)
|
|
(7
|
)
|
||
Amortization of actuarial losses
|
4
|
|
|
(1
|
)
|
||
Net Periodic Other Benefit Costs
|
$
|
31
|
|
|
$
|
23
|
|
|
At March 31, 2018
|
|
At December 31, 2017
|
||||||||||||||||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Marketable Securities
|
$
|
38
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||||||
Total Assets at Fair Value
|
$
|
45
|
|
|
$
|
38
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
9
|
|
|
$
|
22
|
|
|
$
|
—
|
|
Derivatives
|
95
|
|
|
64
|
|
|
31
|
|
|
—
|
|
|
124
|
|
|
78
|
|
|
46
|
|
|
—
|
|
||||||||
Total Liabilities at Fair Value
|
$
|
95
|
|
|
$
|
64
|
|
|
$
|
31
|
|
|
$
|
—
|
|
|
$
|
124
|
|
|
$
|
78
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
At March 31, 2018
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Before-Tax Loss
|
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Properties, plant and equipment, net (held and used)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Properties, plant and equipment, net (held for sale)
|
631
|
|
|
—
|
|
|
631
|
|
|
—
|
|
|
163
|
|
|
|||||
Investments and advances
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
|||||
Total Assets at Fair Value
|
$
|
632
|
|
|
$
|
—
|
|
|
$
|
631
|
|
|
$
|
1
|
|
|
$
|
164
|
|
|
Type of
Contract
|
|
Balance Sheet Classification
|
|
At March 31
2018 |
|
At December 31
2017 |
||||
Commodity
|
|
Accounts and notes receivable, net
|
|
$
|
7
|
|
|
$
|
22
|
|
Commodity
|
|
Long-term receivables, net
|
|
—
|
|
|
—
|
|
||
Total Assets at Fair Value
|
|
$
|
7
|
|
|
$
|
22
|
|
||
Commodity
|
|
Accounts payable
|
|
$
|
90
|
|
|
$
|
122
|
|
Commodity
|
|
Deferred credits and other noncurrent obligations
|
|
5
|
|
|
2
|
|
||
Total Liabilities at Fair Value
|
|
$
|
95
|
|
|
$
|
124
|
|
|
|
|
|
(Loss) / Gain
Three Months Ended March 31 |
||||||
Type of
Contract
|
|
Statement of Income Classification
|
|
2018
|
|
2017
|
||||
Commodity
|
|
Sales and other operating revenues
|
|
$
|
(12
|
)
|
|
$
|
162
|
|
Commodity
|
|
Purchased crude oil and products
|
|
(9
|
)
|
|
4
|
|
||
Commodity
|
|
Other income
|
|
—
|
|
|
(2
|
)
|
||
|
|
|
|
$
|
(21
|
)
|
|
$
|
164
|
|
|
|
Gross Amount Recognized
|
|
Gross Amounts Offset
|
|
Net Amounts Presented
|
|
Gross Amounts Not Offset
|
|
Net Amount
|
||||||||||
At March 31, 2018
|
|
|
|
|
|
|||||||||||||||
Derivative Assets
|
|
$
|
1,180
|
|
|
$
|
1,173
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Derivative Liabilities
|
|
$
|
1,268
|
|
|
$
|
1,173
|
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
$
|
1,169
|
|
|
$
|
1,147
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
Derivative Liabilities
|
|
$
|
1,271
|
|
|
$
|
1,147
|
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
124
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Upstream
|
|
|
|
||||
United States
|
$
|
648
|
|
|
$
|
80
|
|
International
|
2,704
|
|
|
1,437
|
|
||
Total Upstream
|
3,352
|
|
|
1,517
|
|
||
Downstream
|
|
|
|
||||
United States
|
442
|
|
|
469
|
|
||
International
|
286
|
|
|
457
|
|
||
Total Downstream
|
728
|
|
|
926
|
|
||
Total Segment Earnings
|
4,080
|
|
|
2,443
|
|
||
All Other
|
(442
|
)
|
|
239
|
|
||
Net Income Attributable to Chevron Corporation
(1) (2)
|
$
|
3,638
|
|
|
$
|
2,682
|
|
__________________________________________
|
|
|
|
||||
(1)
Includes foreign currency effects
|
$
|
129
|
|
|
$
|
(241
|
)
|
(2)
Income net of tax; also referred to as “earnings” in the discussions that follow.
|
|
|
|
|
•
|
United States — Chevron Phillips Chemical Company LLC, the company’s 50 percent-owned affiliate, commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas.
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
U.S. Upstream Earnings
|
$
|
648
|
|
|
$
|
80
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
International Upstream Earnings*
|
$
|
2,704
|
|
|
$
|
1,437
|
|
___________________
|
|
|
|
||||
* Includes foreign currency effects
|
$
|
120
|
|
|
$
|
(274
|
)
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
U.S. Downstream Earnings
|
$
|
442
|
|
|
$
|
469
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
International Downstream Earnings*
|
$
|
286
|
|
|
$
|
457
|
|
___________________
|
|
|
|
||||
* Includes foreign currency effects
|
$
|
11
|
|
|
$
|
(46
|
)
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
(Charges)/Earnings*
|
$
|
(442
|
)
|
|
$
|
239
|
|
___________________
|
|
|
|
||||
* Includes foreign currency effects
|
$
|
(2
|
)
|
|
$
|
79
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Sales and other operating revenues
|
$
|
35,968
|
|
|
$
|
31,524
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Income from equity affiliates
|
$
|
1,637
|
|
|
$
|
1,150
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Other income
|
$
|
159
|
|
|
$
|
747
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Purchased crude oil and products
|
$
|
21,233
|
|
|
$
|
17,506
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Operating, selling, general and
administrative expenses
|
$
|
5,424
|
|
|
$
|
5,396
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Exploration expenses
|
$
|
158
|
|
|
$
|
144
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Depreciation, depletion and
amortization
|
$
|
4,289
|
|
|
$
|
4,194
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Taxes other than on income
|
$
|
1,344
|
|
|
$
|
2,871
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Interest and debt expense
|
$
|
159
|
|
|
$
|
51
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Other components of net periodic benefit costs
|
$
|
84
|
|
|
$
|
130
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
(Millions of dollars)
|
||||||
Income tax expense
|
$
|
1,414
|
|
|
$
|
430
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
Total Number
Of Shares
Purchased
(1)(2)
|
|
Average
Price Paid
per Share
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Program
|
|
Maximum
Number of Shares
that May Yet Be
Purchased Under
the Program
(2)
|
||||
Jan. 1 – Jan. 31, 2018
|
7,165
|
|
|
$
|
127.58
|
|
|
—
|
|
|
|
Feb. 1 – Feb. 28, 2018
|
—
|
|
|
|
|
|
—
|
|
|
|
|
Mar. 1 – Mar. 31, 2018
|
—
|
|
|
|
|
|
—
|
|
|
|
|
Total
|
7,165
|
|
|
$
|
127.58
|
|
|
—
|
|
|
|
(1)
|
Includes common shares repurchased from company employees and directors for required personal income tax withholdings on the exercise of the stock options and shares delivered or attested to in satisfaction of the exercise price by holders of employee and director stock options. The options were issued to and exercised by management under Chevron long-term incentive plans.
|
(2)
|
In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits, under which common shares would be acquired by the company at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. From inception of the program through 2014, the company had purchased
180,886,291
shares under this program (some pursuant to Rule 10b5-1 plan and some pursuant to accelerated share repurchase plans) for
$20.0 billion
at an average price of approximately
$111
per share. No shares were acquired under the program in 2015, 2016 or 2017 or through the first three months of 2018.
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
Description
|
|
|
|
(4)
|
|
Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of the company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Securities and Exchange Commission upon request.
|
(10.1)+
|
|
|
(10.2)+
|
|
|
(10.3)+
|
|
|
(10.4)+
|
|
|
(10.5)+
|
|
|
(12.1)*
|
|
|
(31.1)*
|
|
|
(31.2)*
|
|
|
(32.1)*
|
|
|
(32.2)*
|
|
|
(101.INS)*
|
|
XBRL Instance Document
|
(101.SCH)*
|
|
XBRL Schema Document
|
(101.CAL)*
|
|
XBRL Calculation Linkbase Document
|
(101.DEF)*
|
|
XBRL Definition Linkbase Document
|
(101.LAB)*
|
|
XBRL Label Linkbase Document
|
(101.PRE)*
|
|
XBRL Presentation Linkbase Document
|
*
|
Filed herewith.
|
|
C
HEVRON
C
ORPORATION
(R
EGISTRANT
)
|
|
|
|
|
|
/
S
/ J
EANETTE
L. O
URADA
|
|
Jeanette L. Ourada, Vice President and Comptroller
(Principal Accounting Officer and
Duly Authorized Officer)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months
Ended
March 31, 2018
|
|
Year Ended December 31
|
||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||
|
|
||||||||||||||||||
Net Income (Loss) Attributable to Chevron Corporation
|
$
|
3,638
|
|
|
$
|
9,195
|
|
|
$
|
(497
|
)
|
|
$
|
4,587
|
|
|
$
|
19,241
|
|
Income Tax Expense (Benefit)
|
1,414
|
|
|
(48
|
)
|
|
(1,729
|
)
|
|
132
|
|
|
11,892
|
|
|||||
Distributions Less Than Equity in Earnings of Affiliates
|
(998
|
)
|
|
(2,214
|
)
|
|
(1,227
|
)
|
|
(760
|
)
|
|
(2,202
|
)
|
|||||
Noncontrolling Interests
|
21
|
|
|
74
|
|
|
66
|
|
|
123
|
|
|
69
|
|
|||||
Previously Capitalized Interest Charged to Earnings During Period
|
61
|
|
|
197
|
|
|
89
|
|
|
120
|
|
|
100
|
|
|||||
Interest and Debt Expense
|
159
|
|
|
307
|
|
|
201
|
|
|
—
|
|
|
—
|
|
|||||
Interest Portion of Rentals
1
|
61
|
|
|
240
|
|
|
313
|
|
|
345
|
|
|
356
|
|
|||||
Earnings Before Provision for Taxes and Fixed Charges
|
$
|
4,356
|
|
|
$
|
7,751
|
|
|
$
|
(2,784
|
)
|
|
$
|
4,547
|
|
|
$
|
29,456
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and Debt Expense
|
159
|
|
|
307
|
|
|
201
|
|
|
—
|
|
|
—
|
|
|||||
Interest Portion of Rentals
1
|
61
|
|
|
240
|
|
|
313
|
|
|
345
|
|
|
356
|
|
|||||
Preferred Stock Dividends of Subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Capitalized Interest
|
68
|
|
|
595
|
|
|
552
|
|
|
495
|
|
|
358
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Fixed Charges
|
$
|
288
|
|
|
$
|
1,142
|
|
|
$
|
1,066
|
|
|
$
|
840
|
|
|
$
|
714
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of Earnings to Fixed Charges
2
|
15.13
|
|
|
6.79
|
|
|
—
|
|
|
5.41
|
|
|
41.25
|
|
|||||
___________________
|
|
|
|
|
|
|
|
|
|
||||||||||
1
Calculated as one-third of rentals. Considered a reasonable approximation of interest factor.
|
|||||||||||||||||||
2
The ratio coverage for the year ended December 31, 2016 was less than 1. Additional earnings of $3.9 billion would have been required to achieve a coverage of 1.
|
1.
|
I have reviewed this
Quarterly
Report on Form 10-
Q
of Chevron Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/ M
ICHAEL
K. W
IRTH
|
Michael K. Wirth
Chairman of the Board and
Chief Executive Officer
|
1.
|
I have reviewed this
Quarterly
Report on Form 10-
Q
of Chevron Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/ P
ATRICIA
E. Y
ARRINGTON
|
Patricia E. Yarrington
Vice President and
Chief Financial Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/
S
/ M
ICHAEL
K. W
IRTH
|
Michael K. Wirth
Chairman of the Board and
Chief Executive Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/
S
/ P
ATRICIA
E. Y
ARRINGTON
|
Patricia E. Yarrington
Vice President and
Chief Financial Officer
|