Chevron 2015 Annual Report Download - page 5

We added approximately 1 billion
barrels of net oil-equivalent proved
reserves in 2015. These additions equate
to approximately 107 percent of net
oil-equivalent production for the year.
Significant reserves were added from
the Permian Basin in the United States
and the Wheatstone Project in Australia.
In our exploration program, we success-
fully drilled an appraisal well of our
Anchor discovery in the deepwater
Gulf of Mexico.
Our Downstream and Chemicals business,
which is responsible for our refining,
marketing and chemical manufacturing,
had an outstanding year. This business
maintained reliable operations, benefited
from lower feedstock costs and realized
eciencies gained by the
reshaping of
our portfolio in recent years.
2015 was one of our best years in
overall health, environment and safety
performance and our best year ever in
preventing significant incidents. Our
Days Away From Work Rate and Motor
Vehicle Crash Rate set new record lows,
and our Total Recordable Incident Rate
and petroleum spill volume matched last
year’s record lows.
We also continued our support of the
communities in which we work. This
past year we advanced our strategic
programs and partnerships, with more
than $233 million in global social
investments. We focused these invest-
ments in three core areas — health,
education and economic development —
to improve access to health care, develop
skilled workers, and boost local and
regional economies. These social invest-
ments complement our investments in
projects and local goods and services,
creating jobs and generating revenues
for the communities where we operate.
More details are available in the 2015
Corporate Responsibility Report.
I am proud to note that 2015 marked the
28th consecutive year that we increased
the annual per-share dividend payout.
Our top financial priority remains
maintaining and growing the dividend
as the pattern of earnings, cash flow
and balance sheet strength permits.
Our year-end debt ratio was a comfort-
able 20.2 percent.
Looking ahead, we announced a 2016
capital and exploratory budget of
$26.6 billion, which is 22 percent lower
than our expenditures for 2015 and
34 percent lower than 2014. This capital
budget will enable us to complete and
ramp up projects under construction,
fund high-return, short-cycle invest-
ments, preserve options for viable
long-cycle projects, and ensure safe,
reliable operations.
The focus of the enterprise in 2016 will
remain on our five key priorities — safely
starting up projects under construction
and realizing the cash flow from them,
lowering capital spending, reducing
operating expenses, completing our
divestment program for assets that
have greater value to others than to
us, and doing all this while continuing
to operate safely and reliably.
Our company’s products provide the
energy that is critical for economic
progress. We are well positioned to
meet growing demand in a safe and
responsible manner.
In all we do, we are guided by The
Chevron Way. This roadmap underpins
the character of our company and
establishes the values by which we
deliver our results. I am confident that
our company and our employees have
what it takes to meet the challenges of
the current business environment and
achieve our vision of being the global
energy company most admired for its
people, partnership and performance.
Thank you for your confidence and
your investment in Chevron.
John S. Watson
Chairman of the Board and
Chief Executive Ocer
February 25, 2016
“Our company’s products provide the energy
that is critical for economic progress. We are well
positioned to meet growing demand in a safe and
responsible manner.”
Chevron Corporation 2015 Annual Report 3