Event Brief of Q1 2004 ChevronTexaco Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

CORPORATE PARTICIPANTS

. John Watson, Chevron Texaco, VP, CFO . Randy Richards [phonetic], Chevron Texaco, Manager IR

OVERVIEW

For 1Q04, CVX reported record quarterly earnings of $2.6b at $2.40 per share and ROCE of 21%. The debt to cap ratio was 25%, while net debt to cap was 13%. The co. recently announced a stock repurchase program, beginning with the purchase of 1.2m shares in April. Q&A Focus: international results, 4Q-1Q deltas, the impct of Great White.

FINANCIAL DATA

A. Key Data From Call 1. 1Q04 Earnings = $2.6b. 2. 1Q04 ROCE = 21%. 3. Net Earnings Per Share = $2.40 4. 1Q04 debt to cap 25%.

5. 1Q04 net debt to cap = 13%. 6. Cash & Marketable Securities = $6.9b

PRESENTATION SUMMARY

S1. 1Q04 Overview (J.W.) 1. Update on Strategic Progress: 2. Portfolio high-grading [phonetic] continues. 3. Upstream: 4. Several U.S. sales concluded. 5. Progress continues on previously announced program.

6. Proceeding with urgency, trying to stay true to requirement to

achieve good value. 7. UK reached agreement to sell three properties with 20,000 barrels per day of production. 8. Two closed in quarter. 9. Downstream: 10. Announced intention to increase ownership in Singapore refinery to 50%. 11. Following up on recent exploration successes and prospects in Gulf of Mexico. 12. Nigeria drilling on Seko 2 [phonetic]. 13. Exploration rights awarded for Block 1 in joint development zone offshore Sao Tome and Principe. 14. CVX will be operator with 51% interest. 15. Notable recent global gas development was signing of MOU between Qatar Petroleum and Satall [phonetic]. 16. Chevron to expand existing GTL project to 100,000 barrels per day. 17. QP and Satall Chevron agreed to pursue development of 130,000 barrel per day upstream/downstream project. 18. Project Milestones: 19. Chad central water treatments on line in Feb.; 225,000 barrels per day peak expected in 2Q04.

20. Gulf of Mexico front end design and engineering contracts

awarded for Tahiti project. 21. Angola large offshore lifts of topside facilities completed for the Sanha Condensate project.

22. Project remains on track for phased start-up starting Oct. this

year. 23. Asia Downstream: 24. Previously announced as core strategic holdings. 25. Since then, China energy requirements have risen dramatically. 26. China's crude and product imports spiking to 3 million barrels per day early this year. 27. Singapore:

28. Improvement in refining margins. 29. Recently announced intention to increase ownership in Singapore Refining Co. to 50%. 30. Price $70m plus share of working capital. 31. Expected to close at end of June. 32. Financial Performance: 33. Record quarterly earnings of $2.6b. 34. ROCE was strong 21%. 35. Balance Sheet: 36. Debt to cap 25% 37. Net debt to cap 13%. 38. In 1Q04, added $500m to pension plans 39. Recently announced stock repurchase program. 40. ROCE: 41. Avg. 1998-2002 performance trailed super-major competitors.

42. 2003 relative position improved 16.3%. 43. Beat super-major competitors by 0.5%.

S2. Earnings (R.R.) 1. Earnings Overview: 2. Net income per diluted share $2.40. 3. One special item related to litigation; $55m charge or $0.05 per share. 4. FX negative $43m or $0.04 per share.

5. Largest impact from US Dollar weakening against UK Pound. 6. 1Q04 vs. 4Q03: 7. Net income up over $800m. 8. Upstream, Downstream and Chemicals all up significantly. 9. Ongoing operating expenses lower. 10. Exploration expenses below typical quarterly level. 11. US Upstream: 12. Earnings up $139m. 13. Included $55m litigation-related charge. 14. 4Q03 special items net $15m. 15. Higher liquids realizations boosted earnings by $120m. 16. Quarterly avg. prices for WTI and Cohn River [phonetic] crudes up over $4 per barrel. 17. Higher natural gas realizations added $100m to earnings. 18. Midweek [phonetic] prices at henry Hub [phonetic] up more than $1 per 1,000cu. ft.

19. California Border and Rocky Mountain prices up $0.70-0.75. 20. Volumes down 2.6%. 21. Variance for Other items netted out. 22. 4Q03 benefited from one-time property tax refunds and adjustments.

23. 1Q04 included gains from asset sales. 24. International Upstream:

25. Earnings increased $277m. 26. Swings in special items and FX effects largely offsetting. 27. No special items in 1Q04. 28. FX negative $20m. 29. Higher realizations; earnings gain of $160m. 30. Liquids realizations up over $2 per barrel. 31. Total volumes off slightly QonQ. 32. Small positive profit variance. 33. Exploration expense low. 34. Other contributed over $70m to variance. 35. DD&A returned to more normal level. 36. Gains on sales of UK producing assets benefited 1Q04. 37. Change in Worldwide Oil and Gas Production:

38. Volumes up 1.4% QonQ. 39. US production down 2.6% QonQ. 40. Expect full year US volume decline, excluding asset sales, 6%. 41. Outside US: 42. Oil and gas production slightly lower due to maintenance

factors. 43. Later in year, Chad, Karachaganak [phonetic] and Hamaka [phonetic] expected to add significant international volumes.

44. US Downstream: 45. Net income improved nearly $200m QonQ. 46. No special items. 47. Refining margins up. 48. Marketing margins weak. 49. Volumes: 50. Refinery input down 6%. 51. Trade sales lower. 52. Total Gasoline sales up. 53. YonY sales volumes up 10%.

54. Branded gasoline sales up over 1%. 55. Operating expenses down.

56. International Downstream: 57. Sizeable earnings gain. 58. FX $29m favorable swing. 59. Benchmark Singapore refining indicator up 50%. 60. Asian marketing margins up. 61. Northwest Europe refining margin flat 62. UK and Latin America marketing margins down slightly.

63. Operating expense down in refining and marketing. 64. Chemicals:

65. Net income over $70m. 66. Much stronger ethylene earnings.

67. Higher sales volumes in [indiscernible] business. 68. All Other:

69. No special items. 70. 4Q03 included a $40m charge. 71. Variance in FX reflects lower gains …