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What changed in Chevron Corporation's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Chevron Corporation's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+773 added−278 removedSource: 10-K (2024-02-26) vs 10-K (2023-02-23)

Top changes in Chevron Corporation's 2023 10-K

773 paragraphs added · 278 removed · 159 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

152 edited+133 added−31 removed37 unchanged
Biggest changeComponents of Oil-Equivalent Oil-Equivalent Crude Oil Natural Gas Liquids Natural Gas Thousands of barrels per day (MBPD) (MBPD) 1 (MBPD) 2 (MBPD) (MMCFPD) Millions of cubic feet per day (MMCFPD) 2022 2021 2022 2021 2022 2021 2022 2021 United States 1,181 1,139 650 643 238 215 1,758 1,689 Other Americas Argentina 40 33 35 28 — — 34 31 Brazil — 3 — 3 — — — — Canada 3 139 161 109 129 7 7 135 150 Total Other Americas 179 197 144 160 7 7 169 181 Africa Angola 70 78 57 65 4 5 49 52 Equatorial Guinea 56 52 12 12 7 6 223 204 Nigeria 152 165 101 118 6 6 266 246 Republic of Congo 31 39 28 36 1 1 11 13 Total Africa 309 334 198 231 18 18 549 515 Asia Bangladesh 118 112 2 2 — — 696 655 China 28 30 10 12 — — 109 104 Indonesia 4 3 67 1 62 — — 18 30 Israel 101 91 1 1 — — 602 541 Kazakhstan 40 41 24 24 — — 96 103 Kurdistan Region of Iraq 1 2 1 2 — — — — Myanmar 17 15 — — — — 94 92 Partitioned Zone 60 58 58 56 — — 7 7 Thailand 4 67 163 18 41 — — 298 736 Total Asia 435 579 115 200 — — 1,920 2,268 Australia Australia 482 449 42 43 — — 2,643 2,434 Total Australia 482 449 42 43 — — 2,643 2,434 Europe United Kingdom 14 14 13 13 — — 9 6 Total Europe 14 14 13 13 — — 9 6 Total Consolidated Companies 2,600 2,712 1,162 1,290 263 240 7,048 7,093 Affiliates 5 399 387 278 263 16 21 629 616 Total Including Affiliates 6 2,999 3,099 1,440 1,553 279 261 7,677 7,709 1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil. 2 Includes crude oil, condensate and synthetic oil. 3 Includes synthetic oil: 45 55 45 55 — — — — 4 Chevron concessions expired in 2021 (Indonesia) and 2022 (Thailand). 5 Volumes represent Chevron’s share of production by affiliates, including Tengizchevroil in Kazakhstan and Angola LNG in Angola. 6 Volumes include natural gas consumed in operations of 570 million and 592 million cubic feet per day in 2022 and 2021, respectively.
Biggest changeComponents of Oil-Equivalent Oil-Equivalent Crude Oil Natural Gas Liquids Natural Gas Thousands of barrels per day (MBD) (MBD) 1 (MBD) 2 (MBD) (MMCFD) Millions of cubic feet per day (MMCFD) 2023 2022 2023 2022 2023 2022 2023 2022 United States 1,349 1,181 710 650 287 238 2,112 1,758 Other Americas Argentina 43 40 37 35 — — 36 34 Canada 3 132 139 109 109 5 7 110 135 Total Other Americas 175 179 146 144 5 7 146 169 Africa Angola 67 70 55 57 4 4 48 49 Equatorial Guinea 49 56 11 12 5 7 198 223 Nigeria 147 152 104 101 5 6 227 266 Republic of Congo 30 31 28 28 — 1 9 11 Total Africa 293 309 198 198 14 18 482 549 Asia Bangladesh 104 118 3 2 — — 610 696 China 30 28 9 10 — — 126 109 Indonesia 4 3 3 1 1 — — 11 18 Israel 95 101 1 1 — — 566 602 Kazakhstan 45 40 26 24 — — 114 96 Kurdistan Region of Iraq — 1 — 1 — — — — Myanmar 15 17 — — — — 87 94 Partitioned Zone 61 60 60 58 — — 6 7 Thailand 5 42 67 10 18 — — 192 298 Total Asia 395 435 110 115 — — 1,712 1,920 Australia Australia 488 482 40 42 2 — 2,678 2,643 Total Australia 488 482 40 42 2 — 2,678 2,643 Europe United Kingdom 14 14 12 13 — — 11 9 Total Europe 14 14 12 13 — — 11 9 Total Consolidated Companies 2,714 2,600 1,216 1,162 308 263 7,141 7,048 Affiliates 6 406 399 281 278 25 16 603 629 Total Including Affiliates 7 3,120 2,999 1,497 1,440 333 279 7,744 7,677 1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil. 2 Includes crude oil, condensate and synthetic oil. 3 Includes synthetic oil: 51 45 51 45 — — — — 4 Indonesia Deepwater Assets were sold in 2023. 5 Chevron concessions expired in 2022. 6 Volumes represent Chevron’s share of production by affiliates, including Tengizchevroil in Kazakhstan and Angola LNG in Angola. 7 Volumes include natural gas consumed in operations of 596 million and 570 million cubic feet per day in 2023 and 2022, respectively.
Net wells represent the sum of Chevron’s ownership interest in gross wells. 9 Table of Contents Review of Ongoing Exploration and Production Activities in Key Areas Chevron has exploration and production activities in many of the world’s major hydrocarbon basins.
Net wells represent the sum of Chevron’s ownership interest in gross wells. 9 Table of Contents Review of Ongoing Activities in Key Areas Chevron has exploration and production activities in many of the world’s major hydrocarbon basins.
The asset is comprised of stacked formations enabling production from multiple geologic zones from single surface locations and staging the development for optimized capacity utilization of facilities and infrastructure. The company has implemented a factory development strategy utilizing multi-well pads to drill a series of horizontal wells that are subsequently completed concurrently using hydraulic fracture stimulation.
The asset is comprised of stacked formations enabling production from multiple geologic zones from single surface locations, staging the development for optimized capacity utilization of facilities and infrastructure. The company has implemented a factory development strategy utilizing multi-well pads to drill a series of horizontal wells that are subsequently completed using hydraulic fracture stimulation.
Hiring, Development and Retention The company’s approach to attracting, developing and retaining a global, diverse workforce of high-performing talent is anchored in a long-term employment model that fosters an environment of personal growth and engagement. Chevron’s philosophy is to offer compelling career opportunities and a competitive total compensation and benefits package linked to individual and enterprise performance.
Hiring, Development and Retention The company’s approach to attracting, developing and retaining a global, diverse workforce of high-performing talent is anchored in a long-term employment model that fosters an environment of personal growth and engagement. The company’s philosophy is to offer compelling career opportunities and a competitive total compensation and benefits package linked to individual and enterprise performance.
Oil sands are mined from both the Muskeg River and the Jackpine mines, and bitumen is extracted from the oil sands and upgraded into synthetic oil. Carbon dioxide (CO 2 ) emissions from the upgrader are reduced by carbon capture and storage facilities. Chevron has a 70 percent-owned and operated interest in most of its Duvernay shale acreage.
Oil sands are mined from both the Muskeg River and the Jackpine mines, and bitumen is extracted from the oil sands and upgraded into synthetic oil. CO 2 emissions from the upgrader are reduced by carbon capture and storage facilities. Chevron has a 70 percent-owned and operated interest in most of its Duvernay shale acreage.
The Chevron Way explains the company’s beliefs, vision, purpose and values. It guides how the company’s employees work and establishes a common understanding of culture and aspirations. Chevron hires, develops, and strives to retain a diverse workforce of high-performing talent, and fosters a culture that values diversity, inclusion and employee engagement.
The company hires, develops, and strives to retain a diverse workforce of high-performing talent, and fosters a culture that values diversity, inclusion and employee engagement. The Chevron Way explains the company’s beliefs, vision, purpose and values. It guides how the company’s employees work and establishes a common understanding of culture and aspirations.
Africa In Africa, the company is engaged in upstream activities in Angola, the Republic of Congo, Cameroon, Egypt, Equatorial Guinea, Namibia and Nigeria. Acreage for Africa can be found in the Acreage table. Net daily oil-equivalent production from these countries can be found in the Net Production of Crude Oil, Natural Gas Liquids and Natural Gas table.
Africa In Africa, the company is engaged in upstream activities in Angola, the Republic of Congo (ROC), Cameroon, Egypt, Equatorial Guinea, Namibia and Nigeria. Acreage for Africa can be found in the Acreage table. Net daily oil-equivalent production from these countries can be found in the Net Production of Crude Oil, Natural Gas Liquids and Natural Gas table.
Chevron is the operator of the Escravos Gas Plant (EGP) with a total processing capacity of 680 million cubic feet per day of natural gas and liquefied petroleum gas and condensate export capacity of 58,000 barrels per day. The company operates the 33,000-barrel-per-day Escravos Gas to Liquids facility.
Chevron is the operator of the Escravos Gas Plant with a total processing capacity of 680 million cubic feet per day of natural gas and liquefied petroleum gas and condensate export capacity of 58,000 barrels per day. The company operates the 33,000-barrel-per-day Escravos Gas to Liquids facility.
Refer to the Results of Operations section for a detailed discussion of the factors explaining the changes in production for liquids (including crude oil, condensate, natural gas liquids and synthetic oil) and natural gas, and refer to Table V for information on annual production by geographical region.
Refer to the Results of Operations section for a detailed discussion of the factors explaining the changes in production for liquids (including crude oil, condensate, NGLs and synthetic oil) and natural gas, and refer to Table V for information on annual production by geographical region.
Outside the United States, substantially all of the natural gas sales from the company’s producing interests are from operations in Angola, Argentina, Australia, Bangladesh, Canada, Equatorial Guinea, Kazakhstan, Indonesia, Israel, Nigeria and Thailand.
Outside the United States, substantially all of the natural gas sales from the company’s producing interests are from operations in Angola, Australia, Bangladesh, Canada, Equatorial Guinea, Kazakhstan, Indonesia, Israel, Nigeria and Thailand.
In addition to the company’s own managed funds, Chevron also makes investments indirectly through the following funds: the Oil and Gas Climate Initiative (OGCI) Climate Investments’ Catalyst Fund I, which targets decarbonization within the oil and gas, industrial, built environments and commercial transportation sectors; Emerald funds, one of which targets energy, water, food, mobility, industrial IT and advanced materials and another that focuses on sustainable packaging; Carbon Direct Capital, a growth equity investor in carbon management technologies; and the HX Venture Fund that targets Houston, Texas high-growth start-up companies.
In addition to the company’s own managed funds, Chevron also makes investments indirectly through the following funds: the Oil and Gas Climate Initiative (OGCI) Climate Investments’ Catalyst Fund I, which targets decarbonization within the oil and gas, industrial, built environments and commercial transportation sectors; Emerald funds, one of which targets 19 Table of Contents energy, water, food, mobility, industrial IT and advanced materials and another that focuses on sustainable packaging; Carbon Direct Capital, a growth equity investor in carbon management technologies; and the HX Venture Fund that targets Houston, Texas high-growth start-up companies.
Our primary objective is to deliver higher returns, lower carbon and superior shareholder value in any business environment. We are building on our capabilities, assets and customer relationships as we aim to lead in lower carbon intensity oil, products and natural gas, as well as advance new products and solutions that reduce the carbon emissions of major industries.
Our objective is to safely deliver higher returns, lower carbon and superior shareholder value in any business environment. We are building on our capabilities, assets and customer relationships as we aim to lead in lower carbon intensity oil, products and natural gas, as well as advance new products and solutions that reduce the carbon emissions of major industries.
Reserves governance, technologies used in establishing proved reserves additions, and major changes to proved reserves by geographic area for the three-year period ended December 31, 2022, are summarized in the discussion for Table V. Discussion is also provided regarding the nature of, status of, and planned future activities associated with the development of proved undeveloped reserves.
Reserves governance, technologies used in establishing proved reserves additions, and major changes to proved reserves by geographic area for the three-year period ended December 31, 2023, are summarized in the discussion for Table V. Discussion is also provided regarding the nature of, status of, and planned future activities associated with the development of proved undeveloped reserves.
Chevron leadership is accountable for the company’s investment in people and the company’s culture. This includes reviews of metrics addressing critical function hiring, leadership development, retention, diversity and inclusion, and employee engagement. The following table summarizes the number of Chevron employees by gender, where data is available, and by region as of December 31, 2022.
Chevron leadership is accountable for the company’s investment in people and the company’s culture. This includes reviews of metrics addressing critical function hiring, leadership development, retention, diversity and inclusion, and employee engagement. The following table summarizes the number of Chevron employees by gender, where data is available, and by region as of December 31, 2023.
Refer to the Review of Ongoing Exploration and Production Activities in Key Areas for a discussion of the company’s major crude oil and natural gas development projects. Acreage At December 31, 2022, the company owned or had under lease or similar agreements undeveloped and developed crude oil and natural gas properties throughout the world.
Refer to the Review of Ongoing Exploration and Production Activities in Key Areas for a discussion of the company’s major crude oil and natural gas development projects. Acreage At December 31, 2023, the company owned or had under lease or similar agreements undeveloped and developed crude oil and natural gas properties throughout the world.
Wheatstone includes the development of the Wheatstone and Iago fields, a two-train, 8.9 million-metric-ton-per-year LNG facility, and a domestic gas plant. The onshore facilities are located at Ashburton North on the coast of Western Australia. Wheatstone’s estimated remaining economic life exceeds 18 years.
Wheatstone includes the development of the Wheatstone and Iago fields, a two-train, 8.9 million-metric-ton-per-year LNG facility, and a domestic gas plant. The onshore facilities are located at Ashburton North on the coast of Western Australia. Wheatstone’s estimated remaining economic life exceeds 17 years.
All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific governmental law or regulation. 6 Table of Contents Average Sales Prices and Production Costs per Unit of Production Refer to Table IV for the company’s average sales price per barrel of crude (including crude oil and condensate) and natural gas liquids and per thousand cubic feet of natural gas produced, and the average production cost per oil-equivalent barrel for 2022, 2021 and 2020.
All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific governmental law or regulation. 6 Table of Contents Average Sales Prices and Production Costs per Unit of Production Refer to Table IV for the company’s average sales price per barrel of crude (including crude oil and condensate) and natural gas liquids (NGLs) and per thousand cubic feet of natural gas produced, and the average production cost per oil-equivalent barrel for 2023, 2022 and 2021.
Tabulations of segment sales and other operating revenues, earnings, assets, and income taxes for the three years ending December 31, 2022, and assets as of the end of 2022 and 2021 — for the United States and the company’s international geographic areas — are in Note 14 Operating Segments and Geographic Data to the Consolidated Financial Statements.
Tabulations of segment sales and other operating revenues, earnings, assets, and income taxes for the three years ending December 31, 2023, and assets as of the end of 2023 and 2022 — for the United States and the company’s international geographic areas — are in Note 14 Operating Segments and Geographic Data to the Consolidated Financial Statements.
Chevron’s 2022 key upstream activities, some of which are also discussed in the section Management’s Discussion and Analysis of Financial Condition and Results of Operations , are presented below. The comments include references to “total production” and “net production,” which are defined under “Production” in Exhibit 99.1 .
Chevron’s 2023 key upstream activities, some of which are also discussed in the section Management’s Discussion and Analysis of Financial Condition and Results of Operations , are presented below. The comments include references to “total production” and “net production,” which are defined under “Production” in Exhibit 99.1 .
We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets, and other emerging technologies. Information about the company is available on the company’s website at www.chevron.com .
We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. Information about the company is available on the company’s website at www.chevron.com .
The company believes it can satisfy these contracts from quantities available from production of the company’s proved developed reserves in these countries. Development Activities Refer to Table I for details associated with the company’s development expenditures and costs of proved property acquisitions for 2022, 2021 and 2020.
The company believes it can satisfy these contracts from quantities available from production of the company’s proved developed reserves in these countries. Development Activities Refer to Table I for details associated with the company’s development expenditures and costs of proved property acquisitions for 2023, 2022 and 2021.
Chevron also holds a 27 percent interest in OML 139 and OML 154 and the company continues to work with the 13 Table of Contents operator to evaluate development options for the multiple discoveries in the Usan area, including the Owowo field, which straddles OML 139 and OML 154.
Chevron also holds a 27 percent nonoperated interest in OML 139 and OML 154 and the company continues to work with the operator to evaluate development options for the multiple deepwater discoveries in the Usan area, including 13 Table of Contents the Owowo field, which straddles OML 139 and OML 154.
Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; and a gas-to-liquids plant.
Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; carbon capture and storage, and a gas-to-liquids plant.
Egypt In the Mediterranean Sea, Chevron holds a 90 percent-owned and operated interest in North Sidi Barrani (Block 2) and North El Dabaa (Block 4) and a 45 percent interest in the Nargis block, as well as a 27 percent nonoperated working interest in both North Marina (Block 6) and North Cleopatra (Block 7).
Egypt In the Mediterranean Sea, Chevron holds a 63 percent-owned and operated interest in North Sidi Barrani (Block 2) and North El Dabaa (Block 4) and a 45 percent interest in the Nargis block, as well as a 27 percent nonoperated working interest in both North Marina (Block 6) and North Cleopatra (Block 7).
Dry United States 1 — 3 2 2 2 4 1 Other Americas 1 — 1 1 — — 2 2 Africa — — 1 — — — — — Asia 3 2 2 — — — — — Australia — — — — — — — — Europe — — — — — — — — Total Consolidated Companies 5 2 7 3 2 2 6 3 Affiliates — — — — — — — — Total Including Affiliates 5 2 7 3 2 2 6 3 * Gross wells represent the total number of wells in which Chevron has an ownership interest.
Dry United States — — — 2 3 2 2 2 Other Americas — — — — 1 1 — — Africa 1 — — — 1 — — — Asia 3 2 1 — 2 — — — Australia — — — — — — — — Europe — — — — — — — — Total Consolidated Companies 4 2 1 2 7 3 2 2 Affiliates — — — — — — — — Total Including Affiliates 4 2 1 2 7 3 2 2 * Gross wells represent the total number of wells in which Chevron has an ownership interest.
In deepwater exploration, Chevron operates and holds a 55 percent interest, in the deepwater Nsiko discoveries in OML 140.
In deepwater exploration, Chevron operates and holds a 55 percent interest, in both the deepwater Nsiko discoveries in OML 140.
Refer to Selected Operating Data in Management’s Discussion and Analysis of Financial Condition and Results of Operations, for further information on the company’s sales volumes of natural gas liquids and natural gas. Refer also to Delivery Commitments for information related to the company’s delivery commitments for the sale of crude oil and natural gas.
Refer to Selected Operating Data in Management’s Discussion and Analysis of Financial Condition and Results of Operations, for further information on the company’s sales volumes of NGLs and natural gas. Refer also to Delivery Commitments for information related to the company’s delivery commitments for the sale of crude oil and natural gas.
The blocks, including two in the Carnarvon Basin off the north-western coast of Western Australia and one in the Bonaparte Basin offshore Northern Territory, total nearly 7.8 million acres. United Kingdom Acreage can be found in the Acreage table.
The blocks, including two in the Carnarvon Basin off the northwestern coast of Western Australia and one in the Bonaparte Basin offshore Northern Territory, total nearly 7.8 million acres. United Kingdom Acreage can be found in the Acreage table.
Imported crude oil accounted for about 60 percent of Chevron’s U.S. refinery inputs in both 2022 and 2021. In the United States, the company continued work on projects aimed at improving refinery flexibility and reliability.
Imported crude oil accounted for about 60 percent of Chevron’s U.S. refinery inputs in both 2023 and 2022. In the United States, the company continued work on projects aimed at improving refinery flexibility and reliability.
Net wells represent the sum of Chevron’s ownership interest in gross wells. Exploration Activities Refer to Table I for detail on the company’s exploration expenditures and costs of unproved property acquisitions for 2022, 2021 and 2020.
Net wells represent the sum of Chevron’s ownership interest in gross wells. Exploration Activities Refer to Table I for detail on the company’s exploration expenditures and costs of unproved property acquisitions for 2023, 2022 and 2021.
The company is collaborating with other Carnarvon Basin participants to assess the possibility of developing Clio and Acme through shared utilization of existing infrastructure. 15 Table of Contents Chevron holds nonoperated working interests ranging from 20 to 50 percent, in three greenhouse gas assessment permits to evaluate the potential of carbon storage.
The company is collaborating with other Carnarvon Basin participants to assess the possibility of developing Clio and Acme through shared utilization of existing infrastructure. Chevron holds nonoperated working interests ranging from 20 to 50 percent, in three greenhouse gas assessment permits to evaluate the potential of carbon storage.
The development plan for the Owowo field involves a subsea tie-back to the existing Usan floating, production, storage, and offloading vessel. Also, in the deepwater area, the Aparo field in OML 132 and OML 140 and the third-party-owned Bonga SW field in OML 118 share a common geologic structure and would be developed jointly.
The development plan for the Owowo field involves a subsea tie-back to the existing Usan floating, production, storage and offloading vessel. Also, in the deepwater area, the Aparo field in OML 132 and OML 140 and the third-party-owned Bonga South West field in OML 118 share a common geologic structure and would be developed jointly.
The following table summarizes the company’s net interest in productive and dry development wells completed in each of the past three years, and the status of the company’s development wells drilling at December 31, 2022.
The following table summarizes the company’s net interest in productive and dry development wells completed in each of the past three years, and the status of the company’s development wells drilling at December 31, 2023.
The following table summarizes the company’s net interests in productive and dry exploratory wells completed in each of the last three years, and the number of exploratory wells drilling at December 31, 2022.
The following table summarizes the company’s net interests in productive and dry exploratory wells completed in each of the last three years, and the number of exploratory wells drilling at December 31, 2023.
The company believes it can satisfy these contracts through a combination of equity production from the company’s proved developed U.S. reserves and third-party purchases. These commitments are primarily based on contracts with indexed pricing terms.
The company believes it can 8 Table of Contents satisfy these contracts through a combination of equity production from the company’s proved developed U.S. reserves and third-party purchases. These commitments are primarily based on contracts with indexed pricing terms.
The company also has interests in the Northeast British Columbia and the Beaufort Sea region of the Northwest Territories. 11 Table of Contents The company has a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) and associated Quest carbon capture and storage project in Alberta.
The company also has interests in the Northeast British Columbia and the Beaufort Sea region of the Northwest Territories. The company has a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) and associated Quest carbon capture and storage project in Alberta.
Chevron also operates and holds a 31 percent interest in a PSC for deepwater Block 14 which expires in 2028. Chevron has a 36.4 percent interest in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, Angola. The plant has the capacity to process 1.1 billion cubic feet of natural gas per day.
Chevron also operates and holds a 31 percent interest in a production sharing contract (PSC) for deepwater Block 14 which expires in 2028. Chevron has a 36.4 percent shareholding in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, Angola. The plant has the capacity to process 1.1 billion cubic feet of natural gas per day.
Operating Environment Refer to pages 32 through 40 of this Form 10-K in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the company’s current business environment and outlook. Chevron’s Strategic Direction Chevron’s strategy is to leverage our strengths to safely deliver lower carbon energy to a growing world.
Operating Environment Refer to Business Environment and Outlook of this Form 10-K in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the company’s current business environment and outlook. Chevron’s Strategic Direction Chevron’s strategy is to leverage our strengths to safely deliver lower carbon energy to a growing world.
In addition, to ensure business continuity, leadership regularly reviews the talent pipeline, identifies and develops succession candidates, and builds succession plans for key positions. The Board of Directors provides oversight of CEO and executive succession planning. Management routinely reviews the retention of its professional population, which includes executives, all levels of management, and the majority of its regular employee population.
In addition, leadership regularly reviews the talent pipeline, identifies and develops succession candidates, and builds succession plans for key positions. The Board of Directors provides oversight of CEO and executive succession planning. Management routinely reviews the retention of its professional population, which includes executives, all levels of management, and the majority of its regular employee population.
Thailand Chevron holds operated interests in the Pattani Basin, located in the Gulf of Thailand, with ownership ranging from 35 percent to 71.2 percent. Concessions for producing areas within this basin expire between 2028 and 2035. Chevron has a 35 percent-owned and operated interest in the Ubon project in Block 12/27.
Thailand Chevron holds operated interests in the Pattani Basin, located in the Gulf of Thailand, with ownership ranging from 35 percent to 71.2 percent. Concessions for producing areas within this basin expire between 2028 and 2035. Chevron has a 35 percent-owned and operated interest in the Pailin field in Block 12/27.
A “development well” is a well drilled within the known area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive. Wells Drilling* Net Wells Completed at 12/31/22 2022 2021 2020 Gross Net Prod. Dry Prod. Dry Prod.
A “development well” is a well drilled within the known area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive. Wells Drilling* Net Wells Completed at 12/31/23 2023 2022 2021 Gross Net Prod. Dry Prod. Dry Prod.
The company has set clear expectations for leaders to deliver operational excellence by demonstrating their commitment to prioritizing the safety and health of its workforce, and the protection of communities, the environment and the company’s assets.
The company has set clear expectations for leaders to deliver operational excellence by prioritizing the safety and health of its workforce, and the protection of communities, the environment and the company’s assets.
Total “as sold” natural gas volumes were 7,107 million and 7,117 million cubic feet per day for 2022 and 2021, respectively. Delivery Commitments The company sells crude oil and natural gas from its producing operations under a variety of contractual obligations.
Total “as sold” natural gas volumes were 7,148 million and 7,107 million cubic feet per day for 2023 and 2022, respectively. Delivery Commitments The company sells crude oil, NGLs and natural gas from its producing operations under a variety of contractual obligations.
In addition, Chevron has 11 employee networks (voluntary groups of employees that come together based on shared identity or interests) and a Chairman’s Inclusion Council, which provides the employee network presidents with a direct line of communication to the Chairman and Chief Executive Officer, the Chief Human Resources Officer, the Chief Diversity and Inclusion Officer, and the executive leadership team to collaborate and discuss how employee networks can reinforce Chevron’s values of diversity and inclusion.
The company has 11 employee networks (voluntary groups of employees and allies that come together based on shared identity or interests) and a Chairman’s Inclusion Council, which provides the employee network presidents with a direct line of communication to the Chairman and Chief Executive Officer, the Chief Human Resources Officer, the Chief Diversity and Inclusion Officer, and the executive leadership team to collaborate and discuss how employee networks can reinforce the company’s values of diversity and inclusion.
Downstream Refining Operations At the end of 2022, the company had a refining network capable of proce s sing 1.8 million barrels of crude oil per day. Operable capacity at December 31, 2022, and daily refinery inputs for 2020 through 2022 for the company and affiliate refineries, are summarized in the table below.
Downstream Refining Operations At the end of 2023, the company had a refining network capable of proce s sing 1.8 million barrels per day. Operable capacity at December 31, 2023, and daily refinery inputs for the company and affiliate refineries for 2021 through 2023, are summarized in the table below.
The company aims to lower the carbon intensity of its traditional oil and gas operations and comply with the greenhouse gas-related laws and regulations to which it is subject. Refer to Item 1A. Risk Factors on pages 20 through 26 for further discussion of greenhouse gas regulation and climate change and the associated risks to Chevron’s business.
The company aims to lower the carbon intensity of its oil and gas operations and comply with the greenhouse gas-related laws and regulations to which it is subject. Refer to Item 1A. Risk Factors for further discussion of greenhouse gas regulation and climate change and the associated risks to Chevron’s business.
Upstream Reserves Refer to Table V for a tabulation of the company’s proved reserves by geographic area, at the beginning of 2020 and at each year-end from 2020 through 2022.
Upstream Reserves Refer to Table V for a tabulation of the company’s proved reserves by geographic area, at the beginning of 2021 and at each year-end from 2021 through 2023.
Net wells represent the sum of Chevron’s ownership interest in gross wells. 2 Includes gross 1,427 and net 482 productive oil wells for interests accounted for by the non-equity method.
Net wells represent the sum of Chevron’s ownership interest in gross wells. 2 Includes gross 1,354 and net 459 productive oil wells for interests accounted for by the non-equity method.
At year-end 2022, the company supplied directly or through retailers and marketers approximately 8,200 Chevron- and Texaco-branded service stations, primarily in the southern and western states. Approximately 310 of these outlets are company-owned or -leased stations. Outside the United States, Chevron supplied directly or through retailers and marketers approximately 5,600 branded service stations, including affiliates.
At year-end 2023, the company supplied directly or through retailers and marketers approximately 8,300 Chevron- and Texaco-branded service stations, primarily in the southern and western states. Approximately 365 of these outlets are company-owned or -leased stations. Outside the United States, Chevron supplied directly or through retailers and marketers approximately 5,600 branded service stations, including affiliates.
CTV has more than two decades of being the on-ramp for external innovation into Chevron, including venture investing, with eight funds that have supported more than 120 startups and worked with more than 250 co-investors.
CTV has more than two decades of being the primary on-ramp for external innovation into Chevron, including venture investing, with eight funds that have supported more than 140 startups and worked with more than 350 co-investors.
Refer to Management Discussion and Analysis of Financial Conditions and Results of Operations Business Environment and Outlook on pages 32 through 34 for further discussion of climate change related trends and uncertainties.
Refer to Management’s Discussion and Analysis of Financial Conditions and Results of Operations Business Environment and Outlook on pages 34 through 36 for further discussion of climate change related trends and uncertainties.
Employee Engagement Employee engagement is an indicator of employee well-being and commitment to the company’s values, purpose and strategies. Chevron regularly conducts employee surveys to assess the health of the company’s culture; recent surveys indicate high employee engagement. Chevron’s survey frequency enables the company to better understand employee sentiment throughout the year and gain insights into employee well-being.
Employee Engagement Employee engagement is an indicator of employee well-being and commitment to the company’s values, purpose and strategies. The company regularly conducts employee surveys to assess the health of the company’s culture. The company’s survey frequency enables the company to understand employee sentiment throughout the year and gain insights into employee well-being.
In May 2022, Chevron formed a joint venture, Bunge Chevron Ag Renewables LLC, in which it holds a 50 percent working interest. The venture produces soybean oil from processing facilities in Destrehan, Louisiana, and Cairo, Illinois. Soybean oil can be used as a renewable feedstock to make renewable diesel, biodiesel, and sustainable aviation fuel.
Chevron holds a 50 percent working interest in Bunge Chevron Ag Renewables LLC, which produces soybean oil from processing facilities in Destrehan, Louisiana, and Cairo, Illinois. Soybean oil can be used as a renewable feedstock to make renewable diesel, biodiesel and sustainable aviation fuel.
Refer to Management's Discussion and Analysis of Financial Conditions and Results of Operations on page 51 for additional information on environmental matters and their impact on Chevron, and on the company’s 2022 environmental expenditures. Refer to page 51 and Note 24 Other Contingencies and Commitments for a discussion of environmental remediation provisions and year-end reserves.
Refer to Management's Discussion and Analysis of Financial Conditions and Results of Operations on pages 52 through 54 for additional information on environmental matters and their impact on Chevron, and on the company’s 2023 environmental expenditures. Refer to page 52 through 54 and Note 24 Other Contingencies and Commitments for a discussion of environmental remediation provisions and year-end reserves.
During 2022, net daily production in the Gulf of Mexico averaged 172,000 barrels of crude oil, 12,000 barrels of NGLs and 101 million cubic feet of natural gas. Chevron is engaged in various operated and nonoperated exploration, development and production activities in the deepwater Gulf of Mexico. Chevron also holds nonoperated interests in several shelf fields.
During 2023, net daily production in the Gulf of Mexico averaged 170,000 barrels of crude oil, 11,000 barrels of NGLs and 97 million cubic feet of natural gas. Chevron is engaged in various operated and nonoperated exploration, development and production activities in the deepwater Gulf of Mexico. Chevron also holds nonoperated interests in several shelf fields.
Chevron holds a 47.3 percent-owned and operated interest in Gorgon on Barrow Island, which includes the development of the Gorgon and Jansz-Io fields, a three-train 15.6 million-metric-ton-per-year LNG facility, a carbon capture and underground storage facility and a domestic gas plant. The Gorgon Stage 2 project is expected to be ready for startup in the first quarter of 2023.
Chevron holds a 47.3 percent-owned and operated interest in Gorgon on Barrow Island, which includes the development of the Gorgon and Jansz-Io fields, a three-train 15.6 million-metric-ton-per-year LNG facility, a carbon capture and underground storage facility and a domestic gas plant. The Gorgon Stage 2 project achieved first gas in May 2023.
The company also holds a 32 percent nonoperated interest in the natural gas and condensate Alba field, a 28 percent nonoperated interest in the Alba LPG Plant and a 45 percent interest in the Atlantic Methanol Production Company. Namibia In September 2022, Chevron acquired an 80 percent-owned and operated interest in PEL90 (Block 2813B) in the Orange Basin, offshore Namibia.
The company also holds a 32 percent nonoperated interest in the Alba Field, a 28 percent nonoperated interest in the Alba LPG Plant and a 45 percent interest in the Atlantic Methanol Production Company. Namibia Chevron has an 80 percent-owned and operated interest in PEL90 (Block 2813B) in the Orange Basin, offshore Namibia.
Progress on the Jansz-Io Compression project continued during 2022, and proved reserves have been recognized for this project. Gorgon’s estimated remaining economic life exceeds 40 years. Chevron holds an 80.2 percent interest in the offshore licenses and a 64.1 percent-owned and operated interest in the LNG facilities associated with Wheatstone.
Progress on the Jansz-Io Compression project continued during 2023 with first gas expected in 2027, and proved reserves have been recognized for this project. Gorgon’s estimated remaining economic life exceeds 40 years. 15 Table of Contents Chevron holds an 80.2 percent interest in the offshore licenses and a 64.1 percent-owned and operated interest in the LNG facilities associated with Wheatstone.
Net acres represent the sum of Chevron’s ownership interest in gross acres. 2 The gross undeveloped acres that will expire in 2023, 2024 and 2025 if production is not established by certain required dates are 4,387, 996, and 1,412, respectively. 3 Includes gross 405 and net 141 undeveloped and gross 19 and net 5 developed acreage for interests accounted for by the non-equity method. 7 Table of Contents Net Production of Crude Oil, Natural Gas Liquids and Natural Gas The following table summarizes the net production of crude oil, natural gas liquids and natural gas for 2022 and 2021 by the company and its affiliates.
Net acres represent the sum of Chevron’s ownership interest in gross acres. 2 The gross undeveloped acres that will expire in 2024, 2025 and 2026 if production is not established by certain required dates are 3,333, 394, and 676, respectively. 3 Includes gross 405 and net 143 undeveloped and gross 19 and net 5 developed acreage for interests accounted for by the non-equity method. 7 Table of Contents Net Production of Crude Oil, Natural Gas Liquids and Natural Gas The following table summarizes the net production of crude oil, NGLs and natural gas for 2023 and 2022 by the company and its affiliates.
Chevron recruits new employees in part through partnerships with universities and diversity associations. In addition, the company recruits experienced hires to provide specialized skills. Chevron’s learning and development programs are designed to help employees achieve their full potential by building technical, operating and leadership capabilities at all levels to produce energy safely, reliably and efficiently.
The company recruits new employees in part through partnerships with universities and diversity associations. In addition, the company recruits experienced hires to provide specialized skills. Chevron’s learning and development programs are designed to help employees achieve their full potential by building technical, operating and leadership capabilities.
Equatorial Guinea Chevron has a 38 percent-owned and operated interest in the Aseng oil field and the Yolanda natural gas field in Block I and a 45 percent-owned and operated interest in the Alen natural gas and condensate field in Block O.
Equatorial Guinea Chevron has a 38 percent-owned and operated interest in the Aseng and the Yolanda fields in Block I and a 45 percent-owned and operated interest in the Alen Field in Block O.
Outside the United States, the company is contractually committed to deliver a total of 2.8 tr illion cubic feet of natural gas to third parties from 2023 through 2025 from operations in Australia and Israel.
Outside the United States, the company is contractually committed to deliver a total of 2.9 tr illion cubic feet of natural gas to third parties and affiliates from 2024 through 2026 from operations in Australia and Israel.
The net proved reserve balances at the end of each of the three years 2020 through 2022 are shown in the following table: At December 31 2022 2021 2020 Crude Oil, Condensate and Synthetic Oil — Millions of barrels Consolidated Companies 3,868 3,821 3,766 Affiliated Companies 1,129 1,254 1,553 Total Crude Oil, Condensate and Synthetic Oil 4,997 5,075 5,319 Natural Gas Liquids — Millions of barrels Consolidated Companies 1,002 935 709 Affiliated Companies 86 103 119 Total Natural Gas Liquids 1,088 1,038 828 Natural Gas — Billions of cubic feet Consolidated Companies 28,765 28,314 27,006 Affiliated Companies 2,099 2,594 2,916 Total Natural Gas 30,864 30,908 29,922 Oil-Equivalent — Millions of barrels 1 Consolidated Companies 9,664 9,475 8,976 Affiliated Companies 1,565 1,789 2,158 Total Oil-Equivalent 11,229 11,264 11,134 1 Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil . ________________________________________________________ * As used in this report, the term “project” may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investments in emerging and sustainable energy activities, and certain other activities.
The net proved reserve balances at the end of each of the three years 2021 through 2023 are shown in the following table: At December 31 2023 2022 2021 Crude Oil, Condensate and Synthetic Oil — Millions of barrels Consolidated Companies 3,770 3,868 3,821 Affiliated Companies 1,007 1,129 1,254 Total Crude Oil, Condensate and Synthetic Oil 4,777 4,997 5,075 Natural Gas Liquids — Millions of barrels Consolidated Companies 1,138 1,002 935 Affiliated Companies 91 86 103 Total Natural Gas Liquids 1,229 1,088 1,038 Natural Gas — Billions of cubic feet Consolidated Companies 28,318 28,765 28,314 Affiliated Companies 2,063 2,099 2,594 Total Natural Gas 30,381 30,864 30,908 Oil-Equivalent — Millions of barrels * Consolidated Companies 9,628 9,664 9,475 Affiliated Companies 1,441 1,565 1,789 Total Oil-Equivalent 11,069 11,229 11,264 * Oil-equivalent conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil . ________________________________________________________ * As used in this report, the term “project” may describe new upstream development activity, individual phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investments in emerging and sustainable energy activities, and certain other activities.
Chevron holds a 16.6 percent nonoperated working interest in the unitized area. The development plan involves subsea wells tied back to a floating production, storage and offloading vessel. At the end of 2022, no proved reserves were recognized for this project. In May 2022, Chevron divested its 40 percent operated interest in OML 86 and OML 88.
Chevron holds a 16.6 percent nonoperated working interest in the unitized area. The development plan involves subsea wells tied back to a floating production, storage and offloading vessel. At the end of 2023, no proved reserves were recognized for this project.
Chevron has a 16.7 percent nonoperated working interest in the North West Shelf (NWS) Venture in Western Australia. The company continues to evaluate exploration and appraisal activity across the Carnarvon Basin, in which it holds more than 1.9 million net acres. Chevron relinquished 4 million net acres in 2022 in the Carnarvon basin.
Chevron has a 16.7 percent nonoperated working interest in the North West Shelf (NWS) Venture in Western Australia. The company continues to evaluate exploration and appraisal activity across the Carnarvon Basin, in which it holds more than 1.8 million net acres. Chevron owns and operates the Clio, Acme and Acme West fields.
The company also has a 41.1 percent nonoperated working interest in a pipeline company that transports natural gas to the Myanmar-Thailand border for delivery to power plants in Thailand. In 2022, Chevron signed an agreement to sell the company’s interest in all Myanmar assets and exit the country, with an expected closing date in the second half of 2023.
The company also has a 41.1 percent nonoperated working interest in a pipeline company that transports natural gas to the Myanmar-Thailand border for delivery to power plants in Thailand. In 2022, Chevron signed an agreement to sell the company’s interest in all Myanmar assets and plans to exit the country in 2024.
Venezuela Chevron’s interests in Venezuela are located in western Venezuela, the Orinoco Belt and offshore Venezuela. As of December 31, 2022, no proved reserves are recognized for these interests. In 2022, the company conducted activities in Venezuela consistent with the authorization provided pursuant to general licenses issued by the United States government.
As of December 31, 2023, no proved reserves are recognized for these interests. In 2023, the company conducted activities in Venezuela consistent with the authorization provided pursuant to general licenses issued by the United States government.
In the unlikely event that a major spill or leak occurs, Chevron also maintains a Worldwide Emergency Response Team comprised of employees who are trained in various aspects of emergency response, including post-incident remediation.
Chevron also requires that sufficient resources be available to execute these plans. In the unlikely event that a major spill or leak occurs, Chevron also maintains a Worldwide Emergency Response Team comprised of employees who are trained in various aspects of emergency response, including post-incident remediation.
Wells Drilling* Net Wells Completed at 12/31/22 2022 2021 2020 Gross Net Prod. Dry Prod. Dry Prod.
Wells Drilling* Net Wells Completed at 12/31/23 2023 2022 2021 Gross Net Prod. Dry Prod. Dry Prod.
As one of the largest producers in the Permian Basin, Chevron continues to capitalize on its advantaged portfolio in west Texas and southeast New Mexico with an outlook of one million barrels of net oil equivalent production per day by 2025.
As one of the largest producers in the Permian Basin, Chevron continues to develop its advantaged portfolio in west Texas and southeast New Mexico and is expected to achieve one million barrels of net oil-equivalent production per day in 2025.
By the end of 2022, a total of 243 wells have been tied into production facilities. Chevron has a 26.9 percent nonoperated working interest in the Hibernia Field and a 24.1 percent nonoperated working interest in the unitized Hibernia Southern Extension areas offshore Atlantic Canada.
By the end of 2023, a total of 261 wells have been tied into production facilities. The company will commence marketing its interest in these assets in 2024. Chevron has a 26.9 percent nonoperated working interest in the Hibernia Field and a 24.1 percent nonoperated working interest in the unitized Hibernia Southern Extension areas offshore Atlantic Canada.
Angola-Republic of Congo Joint Development Area Chevron operates and holds a 31.3 percent interest in the Lianzi Unitization Zone, which is located in an area shared equally by Angola and the Republic of Congo. This interest expires in 2031. Republic of Congo Chevron has a 31.5 percent nonoperated working interest in the offshore Haute Mer permit area.
Angola-Republic of Congo Joint Development Area Chevron operates and holds a 31.25 percent interest in the Lianzi Unitization Zone (Lianzi), which is located in an area shared equally by Angola and the ROC. This interest expires in 2031.
Partitioned Zone Chevron holds a concession to operate the Kingdom of Saudi Arabia’s 50 percent interest in the hydrocarbon resources in the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait. The concession expires in 2046. Current activities focus on base business optimization and production enhancement opportunities.
Partitioned Zone Chevron holds a concession to operate the Kingdom of Saudi Arabia’s 50 percent interest in the hydrocarbon resources in the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait. The concession expires in 2046. Current activities focus on base business optimization and safely re-starting drilling activities. Drilling commenced on an exploration well in late 2023.
U.S. and international sales of NGLs averaged 303,000 and 234,000 barrels per day, respectively, in 2022. During 2022, U.S. and international sales of natural gas averaged 4.4 billion and 5.8 billion cubic feet per day, respectively, which includes the company’s share of equity affiliates’ sales.
U.S. and international sales of NGLs averaged 376,000 and 247,000 barrels per day, respectively, in 2023. During 2023, U.S. and international sales of natural gas averaged 4.7 billion and 6.0 billion cubic feet per day, respectively, which includes the company’s share of equity affiliates’ sales.
The company markets in Latin America using the Texaco brand. In the Asia-Pacific region and the Middle East, the company uses the Caltex brand. In South Korea, the company operates through its 50 percent-owned affiliate, GSC. In Australia, Chevron markets primarily under the Puma brand and began a rebranding project to transition to the Caltex brand in 2022.
The company markets in Latin America using the Texaco brand. In the Asia-Pacific region and the Middle East, the company uses the Caltex brand. In South Korea, the company operates through its 50 percent-owned affiliate, GSC. The rebranding project to transition service stations in Australia from Puma to the Caltex brand is expected to complete in 2024.
At December 31, 2022, 36 percent of the company’s net proved oil-equivalent reserves were located in the United States, 16 percent were located in Australia and 14 percent were located in Kazakhstan.
At December 31, 2023, 38 percent of the company’s net proved oil-equivalent reserves were located in the United States, 15 percent were located in Australia and 13 percent were located in Kazakhstan.
The Pasadena Refinery received regulatory approval for a project that is expected to increase light crude oil throughput capacity to 125,000 barrels per day in 2024. This project is expected to allow the company to run more equity crude from the Permian Basin, supply more products to customers in the U.S.
In 2023, the Pasadena Refinery continued progress on a project that is expected to increase light crude oil throughput capacity to 125,000 barrels per day in 2024. This project is expected to allow the company to process more equity crude from the 16 Table of Contents Permian Basin, supply more products to customers in the U.S.
Chevron has a 25 percent nonoperated working interest in the Stampede Field, which is located in the Green Canyon area. The Stampede Field has an estimated remaining production life of 25 years. Chevron has owned and operated interests of 62.9 to 75.4 percent in the unit areas containing the Anchor field.
The company has a 58 percent-owned and operated interest in the deepwater Tahiti Field, located in the Green Canyon area. The Tahiti Field has an estimated remaining production life of more than 20 years. Chevron has owned and operated interests of 62.9 to 75.4 percent in the unit areas containing the Anchor field, located in the Green Canyon area.
Gulf Coast and realize synergies with the company’s Pascagoula refinery. Outside the United States, the company has interests in three large refineries in Singapore, South Korea and Thailand.
Gulf Coast and realize synergies with the company’s Pascagoula refinery. In July 2023, the Richmond refinery commenced making API Group III base oils. Outside the United States, the company has interests in three large refineries in Singapore, South Korea and Thailand.
The PSCs for Block 16/19 and QHD 32-6 expire in 2028 and 2024, respectively. Cyprus The company holds a 35 percent-owned and operated interest in the Aphrodite gas field in Block 12. Chevron operates the field with the government of Cyprus and has a license that expires in 2044. Indonesia Chevron has working interests through various PSCs in Indonesia.
The PSCs for Block 16/19 and QHD 32-6 expire in 2028 and 2024, respectively. Cyprus The company holds a 35 percent-owned and operated interest in the Aphrodite gas field in Block 12 under a PSC, with an exploitation license that expires in 2044.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThere is no assurance that taxing authorities or courts will agree with the positions that Chevron has reflected on the company’s tax returns, in which case interest and penalties could be imposed that may have a material adverse effect on the company’s results of operations or financial condition.
Biggest changeDue to the unprecedented nature of the suits, the company is unable to estimate any range of possible liability, but given the uncertainty of litigation there can be no assurance that the cases will not have a material adverse effect on the company’s results of operations and financial condition.
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Item 1A. Risk Factors As a global energy company, Chevron is subject to a variety of risks that could materially impact the company’s results of operations and financial condition. BUSINESS AND OPERATIONAL RISK FACTORS Chevron is exposed to the effects of changing commodity prices Chevron is primarily in a commodities business that has a history of price volatility.
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Item 1A. Risk Factors , on page 26.
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The most significant factor that affects the company’s results of operations is the price of crude oil, which can be influenced by general economic conditions and level of economic growth, including low or negative growth; industry production and inventory levels; technology advancements, including those in pursuit of a lower carbon economy; production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries or other producers; weather-related damage and disruptions due to other natural or human causes beyond our control (including without limitation due to the COVID-19 pandemic); competing fuel prices; geopolitical risks; the pace of energy transition; customer and consumer preferences and the use of substitutes; and governmental regulations, policies and other actions regarding the development of oil and gas reserves, as well as greenhouse gas emissions and climate change.
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New Accounting Standards Refer to Note 4 New Accounting Standards for information regarding new accounting standards. 57 Financial Table of Contents Quarterly Results Unaudited 2023 2022 Millions of dollars, except per-share amounts 4th Q 3rd Q 2nd Q 1st Q 4th Q 3rd Q 2nd Q 1st Q Revenues and Other Income Sales and other operating revenues $ 48,933 $ 51,922 $ 47,216 $ 48,842 $ 54,523 $ 63,508 $ 65,372 $ 52,314 Income from equity affiliates 990 1,313 1,240 1,588 1,623 2,410 2,467 2,085 Other income (loss) (2,743) 845 440 363 327 726 923 (26) Total Revenues and Other Income 47,180 54,080 48,896 50,793 56,473 66,644 68,762 54,373 Costs and Other Deductions Purchased crude oil and products 28,477 32,328 28,984 29,407 32,570 38,751 40,684 33,411 Operating expenses 6,510 6,299 6,057 6,021 6,401 6,357 6,318 5,638 Selling, general and administrative expenses 969 1,163 1,128 881 1,454 1,028 863 967 Exploration expenses 254 301 169 190 453 116 196 209 Depreciation, depletion and amortization 6,254 4,025 3,521 3,526 4,764 4,201 3,700 3,654 Taxes other than on income 1,062 1,021 1,041 1,096 864 1,046 882 1,240 Interest and debt expense 120 114 120 115 123 128 129 136 Other components of net periodic benefit costs 44 91 39 38 36 208 (13) 64 Total Costs and Other Deductions 43,690 45,342 41,059 41,274 46,665 51,835 52,759 45,319 Income (Loss) Before Income Tax Expense 3,490 8,738 7,837 9,519 9,808 14,809 16,003 9,054 Income Tax Expense (Benefit) 1,247 2,183 1,829 2,914 3,430 3,571 4,288 2,777 Net Income (Loss) $ 2,243 $ 6,555 $ 6,008 $ 6,605 $ 6,378 $ 11,238 $ 11,715 $ 6,277 Less: Net income (loss) attributable to noncontrolling interests (16) 29 (2) 31 25 7 93 18 Net Income (Loss) Attributable to Chevron Corporation $ 2,259 $ 6,526 $ 6,010 $ 6,574 $ 6,353 $ 11,231 $ 11,622 $ 6,259 Per Share of Common Stock Net Income (Loss) Attributable to Chevron Corporation – Basic $ 1.23 $ 3.48 $ 3.22 $ 3.48 $ 3.34 $ 5.81 $ 5.98 $ 3.23 – Diluted $ 1.22 $ 3.48 $ 3.20 $ 3.46 $ 3.33 $ 5.78 $ 5.95 $ 3.22 Dividends per share $ 1.51 $ 1.51 $ 1.51 $ 1.51 $ 1.42 $ 1.42 $ 1.42 $ 1.42 58 Financial Table of Contents Management’s Responsibility for Financial Statements To the Stockholders of Chevron Corporation Management of Chevron Corporation is responsible for preparing the accompanying consolidated financial statements and the related information appearing in this report.
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Chevron evaluates the risk of changing commodity prices as a core part of its business planning process. An investment in the company carries significant exposure to fluctuations in global crude oil prices. Extended periods of low prices for crude oil can have a material adverse impact on the company’s results of operations, financial condition and liquidity.
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The statements were prepared in accordance with accounting principles generally accepted in the United States of America and fairly represent the transactions and financial position of the company. The financial statements include amounts that are based on management’s best estimates and judgments.
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Among other things, the company’s upstream earnings, cash flows, and capital expenditure programs could be negatively affected, as could its production and proved reserves. Upstream assets may also become impaired. Downstream earnings could be negatively affected because they depend upon the supply and demand for refined products and the associated margins on refined product sales.
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As stated in its report included herein, the independent registered public accounting firm of PricewaterhouseCoopers LLP has audited the company’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). The Board of Directors of Chevron has an Audit Committee composed of directors who are not officers or employees of the company.
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A significant or sustained decline in liquidity could adversely affect the company’s credit ratings, potentially increase financing costs and reduce access to capital markets.
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The Audit Committee meets regularly with members of management, the internal auditors and the independent registered public accounting firm to review accounting, internal control, auditing and financial reporting matters. Both the internal auditors and the independent registered public accounting firm have free and direct access to the Audit Committee without the presence of management.
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The company may be unable to realize anticipated cost savings, expenditure reductions and asset sales that are intended to compensate for such downturns, and such downturns may also slow the pace and scale at which we are able to invest in new business lines such as the lower carbon businesses associated with our Chevron New Energies organization.
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The company’s management has evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the company’s disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2023.
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In some cases, liabilities associated with divested assets may return to the company when an acquirer of those assets subsequently declares bankruptcy.
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Based on that evaluation, management concluded that the company’s disclosure controls are effective in ensuring that information required to be recorded, processed, summarized and reported are done within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms.
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In addition, extended periods of low commodity prices can have a material adverse impact on the results of operations, financial condition and liquidity of the company’s suppliers, vendors, partners and equity affiliates upon which the company’s own results of operations and financial condition depends. 20 Table of Contents The scope of Chevron’s business will decline if the company does not successfully develop resources The company is in an extractive business; therefore, if it is not successful in replacing the crude oil and natural gas it produces with good prospects for future organic opportunities or through acquisitions, the company’s business will decline.
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Management’s Report on Internal Control Over Financial Reporting The company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f).
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Creating and maintaining an inventory of projects depends on many factors, including obtaining and renewing rights to explore, develop and produce hydrocarbons; drilling success; reservoir optimization; ability to bring long-lead-time, capital-intensive projects to completion on budget and on schedule; partner alignment, including strategic support; and efficient and profitable operation of mature properties.
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The company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the company’s internal control over financial reporting based on the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
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The company’s operations could be disrupted by natural or human causes beyond its control Chevron operates in both urban areas and remote and sometimes inhospitable regions.
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Based on the results of this evaluation, the company’s management concluded that internal control over financial reporting was effective as of December 31, 2023. The company excluded PDC Energy, Inc. (PDC) from our assessment of internal control over financial reporting as of December 31, 2023 because it was acquired by the company in a business combination during 2023.
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The company’s operations are therefore subject to disruption from natural or human causes beyond its control, including risks from hurricanes, severe storms, floods, heat waves, other forms of severe weather, wildfires, ambient temperature increases, sea level rise, war or other military conflicts such as the ongoing conflict in Ukraine, accidents, civil unrest, political events, fires, earthquakes, system failures, cyber threats, terrorist acts and epidemic or pandemic diseases such as the COVID-19 pandemic, some of which may be impacted by climate change and any of which could result in suspension of operations or harm to people or the natural environment.
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Total assets and total revenue of PDC, a wholly-owned subsidiary, represent five percent and one percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2023.
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Chevron’s risk management systems are designed to assess potential physical and other risks to its operations and assets and to plan for their resiliency.
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The effectiveness of the company’s internal control over financial reporting as of December 31, 2023, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report included herein. /s/ MICHAEL K. WIRTH /s/ PIERRE R. BREBER /s/ ALANA K. KNOWLES Michael K. Wirth Pierre R. Breber Alana K.
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While capital investment reviews and decisions incorporate potential ranges of physical risks such as storm severity and frequency, sea level rise, air and water temperature, precipitation, fresh water access, wind speed, and earthquake severity, among other factors, it is difficult to predict with certainty the timing, frequency or severity of such events, any of which could have a material adverse effect on the company's results of operations or financial condition.
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Knowles Chairman of the Board Vice President Vice President and Chief Executive Officer and Chief Financial Officer and Controller February 26, 2024 59 Financial Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Chevron Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheet of Chevron Corporation and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated statements of income, of comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
Removed
Impacts of the continuation or further resurgences of the COVID-19 pandemic may have an adverse and potentially material adverse effect on Chevron’s financial and operating results The economic, business, and oil and gas industry impacts from the COVID-19 pandemic and the disruption to capital markets have been far reaching.
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We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
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While the oil and gas industry has witnessed a substantial recovery of commodity prices and demand for products, there continues to be uncertainty and unpredictability about the impact of the COVID-19 pandemic on our financial and operating results in future periods.
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In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
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The extent to which the COVID-19 pandemic adversely impacts our future financial and operating results, and for what duration and magnitude, depends on several factors that are continuing to evolve, are difficult to predict and, in many instances, are beyond the company’s control.
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Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
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Such factors include the duration and scope of the pandemic, including any further resurgences of the COVID-19 virus and its variants, and the impact on our workforce and operations; the negative impact of the pandemic on the economy and economic activity, including travel restrictions and prolonged low demand for our products; the ability of our affiliates, suppliers and partners to successfully navigate the impacts of the pandemic; the actions taken by governments, businesses and individuals in response to the pandemic; the actions of OPEC and other countries that otherwise impact supply and demand and, correspondingly, commodity prices; the extent and duration of recovery of economies and demand for our products after the pandemic subsides; and Chevron’s ability to keep its cost model in line with changing demand for our products.
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Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting.
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In-country conditions, including potential future waves of the COVID-19 virus and its variants in countries that appear to have reduced their infection rates, could impact logistics and material movement and remain a risk to business continuity.
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Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits.
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In light of the significant uncertainty around the duration and extent of the impact of the COVID-19 pandemic, management is currently unable to develop with any level of confidence estimates and assumptions that may have a material impact on the company’s consolidated financial statements and financial or operational performance in any given period.
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We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Removed
In addition, the unprecedented nature of such market conditions could cause current management estimates and assumptions to be challenged in hindsight.
Added
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Removed
In addition, further resurgences of the pandemic could precipitate or aggravate the other risk factors identified in this Form 10-K, which in turn could materially and adversely affect our business, financial condition, liquidity, results of operations and profitability, including in ways not currently known or considered by us to present significant risks.
Added
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
Removed
Cyberattacks targeting Chevron’s process control networks or other digital infrastructure could have a material adverse impact on the company’s business and results of operations There are numerous and evolving risks to Chevron’s cybersecurity and privacy from cyber threat actors, including criminal hackers, state-sponsored intrusions, industrial espionage and employee malfeasance.
Added
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
Removed
These cyber threat actors, whether internal or external to Chevron, are becoming more sophisticated and coordinated in their attempts to access the company’s information technology (IT) systems and data, including the IT systems of cloud providers and other third parties with whom the company conducts business 21 Table of Contents through, without limitation, malicious software; data privacy breaches by employees, insiders or others with authorized access; cyber or phishing-attacks; ransomware; attempts to gain unauthorized access to our data and systems; and other electronic security breaches.
Added
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances.
Removed
Although Chevron devotes significant resources to prevent unwanted intrusions and to protect its systems and data, whether such data is housed internally or by external third parties, the company has experienced and will continue to experience cyber incidents of varying degrees in the conduct of its business.
Added
We believe that our audits provide a reasonable basis for our opinions. As described in Management’s Report on Internal Control over Financial Reporting, management has excluded PDC Energy, Inc. (PDC) from its assessment of internal control over financial reporting as of December 31, 2023 because it was acquired by the Company in a business combination during 2023.
Removed
Cyber threat actors could compromise the company’s process control networks or other critical systems and infrastructure, resulting in disruptions to its business operations, injury to people, harm to the environment or its assets, disruptions in access to its financial reporting systems, or loss, misuse or corruption of its critical data and proprietary information, including without limitation its intellectual property and business information and that of its employees, customers, partners and other third parties.
Added
We have also excluded PDC from our audit of internal control over financial reporting.
Removed
Any of the foregoing can be exacerbated by a delay or failure to detect a cyber incident or the full extent of such incident. Further, the company has exposure to cyber incidents and the negative impacts of such incidents related to its critical data and proprietary information housed on third-party IT systems, including the cloud.
Added
PDC is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent five percent and one percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2023.
Removed
Additionally, authorized third-party IT systems or software can be compromised and used to gain access or introduce malware to Chevron's IT systems that can materially impact the company’s business.
Added
Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Removed
Regardless of the precise method or form, cyber events could result in significant financial losses, legal or regulatory violations, reputational harm, and legal liability and could ultimately have a material adverse effect on the company’s business and results of operations.
Added
A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the 60 Financial Table of Contents transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Removed
The company’s operations have inherent risks and hazards that require significant and continuous oversight Chevron’s results depend on its ability to identify and mitigate the risks and hazards inherent to operating in the energy industry. The company seeks to minimize these operational risks by carefully designing and building its facilities and conducting its operations in a safe and reliable manner.
Added
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Removed
However, failure to manage these risks effectively could impair our ability to operate and result in unexpected incidents, including releases, explosions or mechanical failures resulting in personal injury, loss of life, environmental damage, loss of revenues, legal liability and/or disruption to operations.
Added
Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.
Removed
Chevron has implemented and maintains a system of corporate policies, processes and systems, behaviors and compliance mechanisms to manage safety, health, environmental, reliability and efficiency risks; to verify compliance with applicable laws and policies; and to respond to and learn from unexpected incidents.
Added
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Removed
In certain situations where Chevron is not the operator, the company may have limited influence and control over third parties, which may limit its ability to manage and control such risks.
Added
The Impact of Proved Developed Crude Oil and Natural Gas Reserves on Upstream Property, Plant, and Equipment, Net As described in Notes 1 and 18 to the consolidated financial statements, the Company’s upstream property, plant and equipment, net balance was $135.0 billion as of December 31, 2023, and depreciation, depletion and amortization expense was $15.8 billion for the year ended December 31, 2023.
Removed
The company does not insure against all potential losses, which could result in significant financial exposure The company does not have commercial insurance or third-party indemnities to fully cover all operational risks or potential liability in the event of a significant incident or series of incidents causing catastrophic loss.
Added
The Company follows the successful efforts method of accounting for crude oil and natural gas exploration and production activities. Depreciation and depletion of all capitalized costs of proved crude oil and natural gas producing properties, except mineral interests, are expensed using the unit-of-production method, generally by individual field, as the proved developed reserves are produced.
Removed
As a result, the company is, to a substantial extent, self-insured for such events. The company relies on existing liquidity, financial resources and borrowing capacity to meet short-term obligations that would arise from such an event or series of events.
Added
Depletion expenses for capitalized costs of proved mineral interests are recognized using the unit-of-production method by individual field as the related proved reserves are produced. As disclosed by management, variables impacting the Company’s estimated volumes of proved crude oil and natural gas reserves include field performance, available technology, commodity prices, and development, production and carbon costs.
Removed
The occurrence of a significant incident, series of events, or unforeseen liability for which the company is self-insured, not fully insured or for which insurance recovery is significantly delayed could have a material adverse effect on the company’s results of operations or financial condition.
Added
Reserves are estimated by Company asset teams composed of earth scientists and engineers. As part of the internal control process related to reserves estimation, the Company maintains a Reserves Advisory Committee (RAC) (the Company’s earth scientists, engineers and RAC are collectively referred to as “management’s specialists”).
Removed
LEGAL, REGULATORY AND ESG-RELATED RISK FACTORS Chevron’s business subjects the company to liability risks from litigation or government action The company produces, transports, refines and markets potentially hazardous materials, and it purchases, handles and disposes of other potentially hazardous materials in the course of its business. Chevron's operations also produce byproducts, which may be considered pollutants.
Added
The principal considerations for our determination that performing procedures relating to the impact of proved developed crude oil and natural gas reserves on upstream property, plant, and equipment, net is a critical audit matter are (i) the significant judgment by management, including the use of management’s specialists, when developing the estimates of proved developed crude oil and natural gas reserves, which in turn led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence obtained related to the data, methods and assumptions used by management and its specialists in developing the estimates of proved developed crude oil and natural gas reserves.
Removed
Often these operations are conducted through joint ventures over which the company may have limited influence and control. Any of these activities could result in liability or significant delays in operations arising from private litigation or government action.
Added
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s estimates of proved developed crude oil and natural gas reserves.
Removed
For example, liability or delays could result from an accidental, unlawful discharge or from new conclusions about the effects of the company’s operations on human health or the environment.
Added
The work of management’s specialists was used in performing the procedures to evaluate the reasonableness of the proved developed crude oil and natural gas reserves. As a basis for using this work, the specialists’ qualifications were understood and the Company’s relationship with the specialists was assessed.
Removed
In addition, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to the company’s causation of or contribution to the asserted damage, or to other mitigating factors. For information concerning some of the litigation in which the company is involved, see Note 16 Litigation .
Added
The procedures performed also included evaluation of the methods and assumptions used by the specialists, tests of data used by the specialists and an evaluation of the specialists’ findings related to estimated future production volumes by comparing the estimate to relevant historical and current period information, as applicable. /s/ PricewaterhouseCoopers LLP San Francisco, California February 26, 2024 We have served as the Company’s auditor since 1935. 61 Consolidated Statement of Income Financial Table of Contents Millions of dollars, except per-share amounts Year ended December 31 2023 2022 2021 Revenues and Other Income Sales and other operating revenues $ 196,913 $ 235,717 $ 155,606 Income (loss) from equity affiliates 5,131 8,585 5,657 Other income (loss) (1,095) 1,950 1,202 Total Revenues and Other Income 200,949 246,252 162,465 Costs and Other Deductions Purchased crude oil and products 119,196 145,416 92,249 Operating expenses 24,887 24,714 20,726 Selling, general and administrative expenses 4,141 4,312 4,014 Exploration expenses 914 974 549 Depreciation, depletion and amortization 17,326 16,319 17,925 Taxes other than on income 4,220 4,032 3,963 Interest and debt expense 469 516 712 Other components of net periodic benefit costs 212 295 688 Total Costs and Other Deductions 171,365 196,578 140,826 Income (Loss) Before Income Tax Expense 29,584 49,674 21,639 Income Tax Expense (Benefit) 8,173 14,066 5,950 Net Income (Loss) 21,411 35,608 15,689 Less: Net income (loss) attributable to noncontrolling interests 42 143 64 Net Income (Loss) Attributable to Chevron Corporation $ 21,369 $ 35,465 $ 15,625 Per Share of Common Stock Net Income (Loss) Attributable to Chevron Corporation - Basic $ 11.41 $ 18.36 $ 8.15 - Diluted $ 11.36 $ 18.28 $ 8.14 See accompanying Notes to the Consolidated Financial Statements. 62 Consolidated Statement of Comprehensive Income Financial Table of Contents Millions of dollars Year ended December 31 2023 2022 2021 Net Income (Loss) $ 21,411 $ 35,608 $ 15,689 Currency translation adjustment Unrealized net change arising during period 11 (41) (55) Unrealized holding gain (loss) on securities Net gain (loss) arising during period 1 (1) (1) Derivatives Net derivatives gain (loss) on hedge transactions (11) 65 (6) Reclassification to net income 33 (80) 6 Income tax benefit (cost) on derivatives transactions (5) 3 — Total 17 (12) — Defined benefit plans Actuarial gain (loss) Amortization to net income of net actuarial loss and settlements 244 599 1,069 Actuarial gain (loss) arising during period (550) 1,050 1,244 Prior service credits (cost) Amortization to net income of net prior service costs and curtailments (13) (19) (14) Prior service (costs) credits arising during period (29) (96) — Defined benefit plans sponsored by equity affiliates - benefit (cost) 6 100 127 Income tax benefit (cost) on defined benefit plans 151 (489) (647) Total (191) 1,145 1,779 Other Comprehensive Gain (Loss), Net of Tax (162) 1,091 1,723 Comprehensive Income (Loss) 21,249 36,699 17,412 Comprehensive loss (income) attributable to noncontrolling interests (42) (143) (64) Comprehensive Income (Loss) Attributable to Chevron Corporation $ 21,207 $ 36,556 $ 17,348 See accompanying Notes to the Consolidated Financial Statements. 63 Consolidated Balance Sheet Financial Table of Contents Millions of dollars, except per-share amounts At December 31 2023 2022 Assets Cash and cash equivalents $ 8,178 $ 17,678 Marketable securities 45 223 Accounts and notes receivable (less allowance: 2023 - $301; 2022 - $457) 19,921 20,456 Inventories: Crude oil and products 6,059 5,866 Chemicals 406 515 Materials, supplies and other 2,147 1,866 Total inventories 8,612 8,247 Prepaid expenses and other current assets 4,372 3,739 Total Current Assets 41,128 50,343 Long-term receivables, net (less allowances: 2023 - $340; 2022 - $552) 942 1,069 Investments and advances 46,812 45,238 Properties, plant and equipment, at cost 346,081 327,785 Less: Accumulated depreciation, depletion and amortization 192,462 184,194 Properties, plant and equipment, net 153,619 143,591 Deferred charges and other assets 13,734 12,310 Goodwill 4,722 4,722 Assets held for sale 675 436 Total Assets $ 261,632 $ 257,709 Liabilities and Equity Short-term debt $ 529 $ 1,964 Accounts payable 20,423 18,955 Accrued liabilities 7,655 7,486 Federal and other taxes on income 1,863 4,381 Other taxes payable 1,788 1,422 Total Current Liabilities 32,258 34,208 Long-term debt 1 20,307 21,375 Deferred credits and other noncurrent obligations 24,226 20,396 Noncurrent deferred income taxes 18,830 17,131 Noncurrent employee benefit plans 4,082 4,357 Total Liabilities 2 $ 99,703 $ 97,467 Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) — — Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at December 31, 2023 and 2022) 1,832 1,832 Capital in excess of par value 21,365 18,660 Retained earnings 200,025 190,024 Accumulated other comprehensive losses (2,960) (2,798) Deferred compensation and benefit plan trust (240) (240) Treasury stock, at cost (2023 - 577,028,776 shares; 2022 - 527,460,237 shares) (59,065) (48,196) Total Chevron Corporation Stockholders’ Equity 160,957 159,282 Noncontrolling interests (includes redeemable noncontrolling interest of $166 and $142 at December 31, 2023 and 2022) 972 960 Total Equity 161,929 160,242 Total Liabilities and Equity $ 261,632 $ 257,709 1 Includes finance lease liabilities of $574 and $403 at December 31, 2023 and 2022, respectively. 2 Refer to Note 24 Other Contingencies and Commitments .
Removed
Political instability and significant changes in the legal and regulatory environment could harm Chevron’s business The company’s operations, particularly exploration and production, can be affected by changing political, regulatory and economic environments in the various countries in which it operates.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeInformation required by Subpart 1200 of Regulation S-K (“Disclosure by Registrants Engaged in Oil and Gas Producing Activities”) is also contained in Item 1 and in Tables I through VII on pages 99 through 111 and Note 18 Properties, Plant and Equipment .
Biggest changeInformation required by Subpart 1200 of Regulation S-K (“Disclosure by Registrants Engaged in Oil and Gas Producing Activities”) is also contained in Item 1 and in Tables I through VII on pages 102 through 114 and Note 18 Properties, Plant and Equipment .

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeResolution of the alleged violations may result in the payment of a civil penalty of $1.0 million or more. As previously disclosed, the California Department of Conservation, California Geologic Energy Management Division (CalGEM) (previously known as the Division of Oil, Gas and Geothermal Resources) promulgated revised rules pursuant to the Underground Injection Control program that took effect April 1, 2019.
Biggest changeAs previously disclosed, the California Department of Conservation, California Geologic Energy Management Division (CalGEM) (previously known as the Division of Oil, Gas and Geothermal Resources) promulgated revised rules pursuant to the Underground Injection Control program that took effect April 1, 2019.
As previously disclosed, the California Department of Fish and Game, Office of Spill Prevention and Response issued a Complaint - Notice of Violation (NOV) to Chevron for alleged violations related to oil spills and impacted habitat and species occurring between January 2018 and May 2022 at different Chevron fields within Kern County, California.
As previously disclosed, the California Department of Fish and Wildlife, Office of Spill Prevention and Response (CDFW, OSPR) issued a Complaint - NOV to Chevron for alleged violations related to oil spills and impacted habitat and species occurring between January 2018 and May 2022 at different Chevron fields within Kern County, California.
Chevron is currently in discussions with CalGEM to explore a global settlement to resolve the order and all past and present seeps in the Cymric Field, which would increase the amount of penalty paid. Please see information related to other legal proceedings in Note 16 Litigation .
Chevron is currently in discussions with CalGEM regarding a settlement to resolve the order and all past and present seeps in the Cymric Field, which will increase the amount of penalty paid.
Added
As previously disclosed, Chevron received correspondence from California’s Bay Area Air Quality Management District (BAAQMD) seeking to resolve certain Notices of Violation (NOVs) related to alleged violations that occurred at Chevron’s refinery in Richmond, California, between 2019 and 2022.
Added
The parties negotiated a resolution of the NOVs, including additional NOVs from the first half of 2023, in a settlement effective February 12, 2024. Resolution of these alleged violations will result in the payment of a civil penalty of $20 million.
Added
Chevron is negotiating a potential resolution of the NOVs with CDFW, OSPR. Resolution of the alleged violations will result in the payment of a civil penalty of $1.0 million or more.
Added
On March 17, 2022, the Texas Commission on Environmental Quality and Harris County, Texas filed a civil lawsuit alleging violations of the Texas Clean Air Act in connection with a fire at Chevron’s Pasadena, Texas refinery. The Pasadena refinery is currently negotiating a potential resolution that may result in the payment of a civil penalty of $1.0 million or more.
Added
Please see information related to other legal proceedings in Note 16 Litigation .

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeChevron Corporation Issuer Purchases of Equity Securities for Quarter Ended December 31, 2022 Total Number Average Total Number of Shares Approximate Dollar Values of Shares that of Shares Price Paid Purchased as Part of Publicly May Yet be Purchased Under the Program Period Purchased 1,2 per Share Announced Program (Billions of dollars) 2 October 1 – October 31, 2022 7,582,842 $165.65 7,582,805 $9.4 November 1 – November 30, 2022 6,967,090 $183.00 6,966,715 $8.1 December 1 – December 31, 2022 6,972,807 $174.82 6,972,807 $6.9 Total October 1 – December 31, 2022 21,522,739 $174.24 21,522,327 1 Includes common shares repurchased from participants in the company's deferred compensation plans for personal income tax withholdings. 2 Refer to Liquidity and Capital Resources for additional detail regarding the company's authorized stock repurchase program.
Biggest changeChevron Corporation Issuer Purchases of Equity Securities for Quarter Ended December 31, 2023 Total Number Average Total Number of Shares Approximate Dollar Values of Shares that of Shares Price Paid Purchased as Part of Publicly May Yet be Purchased Under the Program Period Purchased * per Share Announced Program (Billions of dollars) * October 1 – October 31, 2023 9,396,099 $162.01 9,396,099 $65.7 November 1 – November 30, 2023 6,818,060 $144.50 6,818,060 $64.7 December 1 – December 31, 2023 6,180,512 $147.74 6,180,512 $63.8 Total October 1 – December 31, 2023 22,394,671 $152.74 22,394,671 *Refer to Liquidity and Capital Resources for additional detail regarding the company's authorized stock repurchase program.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The company’s common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 10, 2023, stockholders of record numbered approximately 104,000. There are no restrictions on the company’s ability to pay dividends.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The company’s common stock is listed on the New York Stock Exchange (trading symbol: CVX). As of February 9, 2024, stockholders of record numbered approximately 100,000. There are no restrictions on the company’s ability to pay dividends.

Other CVX 10-K year-over-year comparisons