Chevron 2012 Annual Report Download - page 4

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Our major businesses generated strong
operating results. In the upstream,
we ranked No. 1 in earnings per barrel
relative to our peers for the third
straight year. In 2012, we advanced
four deepwater major capital projects
through startup: Usan, Caesar/Tonga,
Agbami 2 and Tahiti 2 — with Tahiti
setting several industry records for
water injection in deepwater production.
Over the next five years, we anticipate
16 project startups with a Chevron
share of investment greater than
$1 billion each. Among them are two
of our three new liquefied natural gas
projects: Angola and Gorgon, offshore
Western Australia; our deepwater
projects Jack/St. Malo, Big Foot and
Tubular Bells in the U.S. Gulf of Mexico;
and the Escravos Gas-to-Liquids
Project in Nigeria.
Exploration successes continued in
2012 with discoveries in seven
countries. That includes Australia’s
Carnarvon Basin, bringing total
discoveries there to 19 since mid-
2009 and positioning our Gorgon
and Wheatstone projects for potential
future expansions. Exploration success
was nearly 74 percent, exceeding our
10-year average of 54 percent. We
added 1.1 billion barrels of net oil-
equivalent proved reserves, replacing
112 percent of production in 2012.
The global restructuring of our
downstream and chemicals business
has delivered greater value from a more
focused footprint. In 2012, we ranked
No. 2 in earnings per barrel relative
average dividend increase of 11 percent
compounded since 2004 — compared
with the average 3 percent of S&P
100 companies over that same period.
Our total stockholder returns of 6.5
percent and 16.3 percent over the past
five- and 10-year periods, respectively,
continue to lead our peer group.
Our strong financial performance
was reflected in net income of $26.2
billion on sales and other operating
revenues of $231 billion. We achieved
a competitive 18.7 percent return on
capital employed. We increased our
dividend payout to stockholders for
the 25th consecutive year, marking an
For Chevron, 2012 was another year of delivering strong results. Even as global economic
challenges persisted, we continued building the foundation for sustained growth in our
upstream and downstream businesses. And we produced excellent returns for our stockholders.
To Our Stockholders