Chevron 2004 Annual Report Download - page 93

CHEVRONTEXACO CORPORATION 2004 ANNUAL REPORT 91
Consolidated Companies
United States International
Gulf of Total Asia- Total Affiliated Companies
Millions฀of฀dollars Calif. Mexico Other U.S. Africa Pacific Indonesia Other Int’l. Total TCO Hamaca

Future cash inflows
from production            
Future production costs                   
Future devel. costs                   
Future income taxes                   
Undiscounted future
net cash flows                       
10 percent midyear annual
discount for timing of
estimated cash flows                   

                       

Future cash inflows
from production $ 30,307 $ 23,521 $ 33,251 $ 87,079 $ 55,532 $ 33,031 $ 26,288 $ 29,987 $ 144,838 $ 231,917 $ 56,485 $ 9,018
Future production costs (10,692) (5,003) (9,354) (25,049) (8,237) (6,389) (11,387) (6,334) (32,347) (57,396) (6,099) (1,878)
Future devel. costs (1,668) (1,550) (990) (4,208) (4,524) (2,432) (1,729) (1,971) (10,656) (14,864) (6,066) (463)
Future income taxes (6,073) (5,742) (7,752) (19,567) (25,369) (9,932) (5,993) (7,888) (49,182) (68,749) (12,520) (2,270)
Undiscounted future
net cash flows 11,874 11,226 15,155 38,255 17,402 14,278 7,179 13,794 52,653 90,908 31,800 4,407
10 percent midyear annual
discount for timing of
estimated cash flows (6,050) (3,666) (7,461) (17,177) (8,482) (6,392) (3,013) (5,039) (22,926) (40,103) (20,140) (2,949)

  $ 5,824 $ 7,560 $ 7,694 $ 21,078 $ 8,920 $ 7,886 $ 4,166 $ 8,755 $ 29,727 $ 50,805 $ 11,660 $ 1,458

Future cash inflows
from production $ 27,111 $ 19,671 $ 31,130 $ 77,912 $ 52,513 $ 31,099 $ 28,451 $ 26,531 $ 138,594 $ 216,506 $ 52,457 $ 9,777
Future production costs (11,071) (5,167) (10,077) (26,315) (6,435) (4,534) (9,552) (5,970) (26,491) (52,806) (4,959) (1,730)
Future devel. costs (1,769) (748) (1,116) (3,633) (3,454) (2,516) (1,989) (1,868) (9,827) (13,460) (5,377) (578)
Future income taxes (4,829) (4,655) (6,747) (16,231) (25,060) (10,087) (7,694) (6,797) (49,638) (65,869) (11,899) (2,540)
Undiscounted future
net cash flows 9,442 9,101 13,190 31,733 17,564 13,962 9,216 11,896 52,638 84,371 30,222 4,929
10 percent midyear annual
discount for timing of
estimated cash flows (4,713) (2,493) (6,666) (13,872) (8,252) (6,297) (3,674) (3,691) (21,914) (35,786) (18,964) (3,581)

  $ 4,729 $ 6,608 $ 6,524 $ 17,861 $ 9,312 $ 7,665 $ 5,542 $ 8,205 $ 30,724 $ 48,585 $ 11,258 $ 1,348
* 2002 includes certain reclassifications to conform to 2004 presentation.
The฀standardized฀measure฀of฀discounted฀future฀net฀cash฀flows,฀
related฀to฀the฀preceding฀proved฀oil฀and฀gas฀reserves,฀is฀calculated฀
in฀accordance฀with฀the฀requirements฀of฀FAS฀69.฀Estimated฀future฀
cash฀inflows฀from฀production฀are฀computed฀by฀applying฀year-
end฀prices฀for฀oil฀and฀gas฀to฀year-end฀quantities฀of฀estimated฀
net฀proved฀reserves.฀Future฀price฀changes฀are฀limited฀to฀those฀
provided฀by฀contractual฀arrangements฀in฀existence฀at฀the฀end฀of฀
each฀reporting฀year.฀Future฀development฀and฀production฀costs฀
are฀those฀estimated฀future฀expenditures฀necessary฀to฀develop฀
and฀produce฀year-end฀estimated฀proved฀reserves฀based฀on฀year-
end฀cost฀indices,฀assuming฀continuation฀of฀year-end฀economic฀
conditions,฀and฀include฀estimated฀costs฀for฀asset฀retirement฀obli-
gations.฀Estimated฀future฀income฀taxes฀are฀calculated฀by฀applying฀
appropriate฀year-end฀statutory฀tax฀rates.฀These฀rates฀reflect฀
allowable฀deductions฀and฀tax฀credits฀and฀are฀applied฀to฀estimated฀
future฀pretax฀net฀cash฀flows,฀less฀the฀tax฀basis฀of฀related฀assets.฀
Discounted฀future฀net฀cash฀flows฀are฀calculated฀using฀10฀percent฀
midperiod฀discount฀factors.฀Discounting฀requires฀a฀year-by-year฀
estimate฀of฀when฀future฀expenditures฀will฀be฀incurred฀and฀when฀
reserves฀will฀be฀produced.
The฀information฀provided฀does฀not฀represent฀management’s฀
estimate฀of฀the฀company’s฀expected฀future฀cash฀flows฀or฀value฀of฀
proved฀oil฀and฀gas฀reserves.฀Estimates฀of฀proved฀reserve฀quantities฀
are฀imprecise฀and฀change฀over฀time฀as฀new฀information฀becomes฀
available.฀Moreover,฀probable฀and฀possible฀reserves,฀which฀may฀
become฀proved฀in฀the฀future,฀are฀excluded฀from฀the฀calculations.฀
The฀arbitrary฀valuation฀prescribed฀under฀FAS฀69฀requires฀assump-
tions฀as฀to฀the฀timing฀and฀amount฀of฀future฀development฀and฀
production฀costs.฀The฀calculations฀are฀made฀as฀of฀December฀31฀
each฀year฀and฀should฀not฀be฀relied฀upon฀as฀an฀indication฀of฀the฀
company’s฀future฀cash฀flows฀or฀value฀of฀its฀oil฀and฀gas฀reserves.฀In฀
the฀following฀table,฀“Standardized฀Measure฀Net฀Cash฀Flows”฀refers฀
to฀the฀standardized฀measure฀of฀discounted฀future฀net฀cash฀flows.
