Chevron 2006 Annual Report Download - page 4

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2006 was an exceptional
year for our company. We
continued to deliver value
to our stockholders and to
make strategic investments
that will drive sustained,
superior performance over
the long term.
We reported record net income of $17.1 billion on sales and
other operating revenues of approximately $205 billion.
For the year, total stockholder return was 33.8 percent,
which was more than double the rate of return delivered
by the S&P 500. Return on capital employed was a strong
22.6 percent. We continued to return cash to stock-
holders through our stock buyback program, purchasing
$5 billion worth of shares in the open market, and we
increased our annual dividend for the 19th year in a row.
We are committed to exercising the capital discipline
necessary to balance current returns with investments
for future profi table growth.
DELIVERING RESULTS :: We completed the successful
integration of Unocal after acquiring the company in
2005 and reached a number of milestones for our major
capital projects, including fi rst production at fi elds in
Angola, Azerbaijan, Trinidad and Tobago, and the United
Kingdom. Overall, we increased year-over-year produc-
tion volumes by nearly 6 percent.
Our exploration program in 2006 was outstanding,
refl ecting the discipline and effi ciency of our processes.
We announced a number of discoveries, most notably
in Australia, Nigeria and the U.S. Gulf of Mexico. We
achieved our fi fth successful year of exploration results
and added more than 1 billion barrels of potentially
recoverable oil and gas resources.
TO OUR STOCKHOLDERS