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Financial Table of Contents

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Key Financial Results 10

Earnings by Major Operating Area 10

Business Environment and Outlook 10

Operating Developments 13

Results of Operations 14

Consolidated Statement of Income 17

Selected Operating Data 19

Liquidity and Capital Resources 20

Financial Ratios 22

Off-Balance-Sheet Arrangements, Contractual Obligations,

Guarantees and Other Contingencies 22

Financial and Derivative Instrument Market Risk 23

Transactions With Related Parties 23

Litigation and Other Contingencies 24

Environmental Matters 24

Critical Accounting Estimates and Assumptions 25

New Accounting Standards 28

Quarterly Results and Stock Market Data 28

Consolidated Financial Statements

Reports of Management 29

Report of Independent Registered Public Accounting Firm 30

Consolidated Statement of Income 31

Consolidated Statement of Comprehensive Income 32

Consolidated Balance Sheet 33

Consolidated Statement of Cash Flows 34

Consolidated Statement of Equity 35

Notes to the Consolidated Financial Statements

Note 1 Summary of Significant Accounting Policies 36

Note 2 Changes in Accumulated Other Comprehensive Losses 38

Note 3 Noncontrolling Interests 38

Note 4 Information Relating to the Consolidated

Statement of Cash Flows 39

Note 5 New Accounting Standards 40

Note 6 Lease Commitments 40

Note 7 Summarized Financial Data – Chevron U.S.A. Inc. 41

Note 8 Summarized Financial Data – Tengizchevroil LLP 42

Note 9 Fair Value Measurements 42

Note 10 Financial and Derivative Instruments 43

Note 11 Assets Held for Sale 44

Note 12 Equity 45

Note 13 Earnings Per Share 45

Note 14 Operating Segments and Geographic Data 45

Note 15 Investments and Advances 48

Note 16 Properties, Plant and Equipment 49

Note 17 Litigation 50

Note 18 Taxes 53

Note 19 Short-Term Debt 56

Note 20 Long-Term Debt 57

Note 21 Accounting for Suspended Exploratory Wells 57

Note 22 Stock Options and Other Share-Based Compensation 58

Note 23 Employee Benefit Plans 59

Note 24 Other Contingencies and Commitments 65

Note 25 Asset Retirement Obligations 67

Note 26 Restructuring and Reorganization Costs 67

Note 27 Other Financial Information 67

Five-Year Financial Summary 68

Five-Year Operating Summary 69

Supplemental Information on Oil and Gas Producing Activities 70

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE

HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Annual Report of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current

expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,”

“expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “may,” “could,” “should,” “budgets,”

“outlook,” “on schedule,” “on track” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees

of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to

predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader

should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron

undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and

natural gas prices; changing refining, marketing and chemicals margins; the company’s ability to realize anticipated cost savings and expenditure

reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy

sources or product substitutes; technological developments; the results of operations and financial condition of the company’s suppliers, vendors, partners

and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture

partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future

crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption

or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil

production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond

its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and

international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental

regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations,

including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential

liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets and gains and losses from asset

dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on

scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt

markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability

to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors”

on pages 21 through 23 of the company’s Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also

have material adverse effects on forward-looking statements.

Chevron Corporation 2015 Annual Report 9