Chevron Reports First Quarter Net Income of $6.2 Billion, up from $4.6 Billion in First Quarter 2010

Chevron Corporation (NYSE:CVX) today reported earnings of $6.2 billion
($3.09 per share ? diluted) for the first quarter 2011, compared with
$4.6 billion ($2.27 per share ? diluted) in the 2010 first quarter.

Sales and other operating revenues in the first quarter 2011 were $58
billion, up from $47 billion in the year-ago period, mainly due to
higher prices for crude oil and refined products.

'Our first quarter financial performance was strong,? said Chairman and
CEO John Watson. 'Current quarter earnings from upstream operations
benefited from higher prices for crude oil, while downstream operations
benefited from improved margins on refined petroleum products. We
continue to operate safely, advance our major capital projects and
restructure our downstream portfolio.?

Watson continued, 'We are aggressively investing in affordable supplies
of new energy to meet the needs of a growing economy. Our combined
capital outlays and investments during the quarter amounted to over $8
billion.? The company completed the acquisition of Atlas Energy, Inc.,
which provides a premier position in the Marcellus Shale in southwestern
Pennsylvania, and strengthens the company′s global position in
developing unconventional gas resources. The company continues to
advance its major capital projects, including deepwater projects in the
Gulf of Mexico and multiple LNG projects in Angola and Australia. The
Gorgon Project in Australia continues on pace, and the company finalized
agreements to bring another major participant into the Australian
Wheatstone Project as both a natural gas supplier and equity participant.

Watson continued, 'We recently received our first deepwater exploratory
drilling permit in the Gulf of Mexico following the moratorium, and have
resumed work on our Moccasin well that was suspended in June of last
year. The resumption of deepwater drilling activity in the Gulf of
Mexico is vital to improving our nation′s energy security and supporting
the economic recovery. We are working with the government to improve the
efficiency and transparency of the permitting process.?

'In the downstream business, we made further progress on streamlining
our asset portfolio,? Watson added. The company announced an agreement
to sell its 220,000-barrels-per-day Pembroke Refinery and other
downstream assets in the United Kingdom and Ireland for $730 million,
plus additional proceeds estimated at $1 billion for the company′s
inventory and other working capital. The transaction is expected to
close in the second-half 2011. The company also announced an agreement
to sell its fuels, finished lubricants and aviation fuels businesses in
Spain, and completed the sale of its fuels-marketing and aviation
businesses in nine eastern Caribbean countries as well as its
fuels-marketing businesses in two African countries.

Also in the first quarter, the company announced the final investment
decision on a $1.4 billion project to construct a lubricants base oil
manufacturing facility at the Pascagoula, Mississippi, refinery. The
facility is designed to manufacture 25,000 barrels per day of premium
base oil. Project completion is expected by year-end 2013.

The company purchased $750 million of its common stock in the first
quarter 2011.

UPSTREAM

Worldwide net oil-equivalent production was 2.76 million barrels per day
in the first quarter 2011, down from 2.78 million barrels per day in the
2010 first quarter. Production increases in Brazil, Nigeria, Thailand
and Canada were more than offset by normal field declines, a one percent
negative volume effect of higher prices on cost-recovery volumes and
other contractual provisions as well as decreases due to weather- and
maintenance-related downtime.

U.S. upstream earnings of $1.45 billion in the first quarter 2011 were
up $293 million from a year earlier. The benefit of higher crude oil
realizations was partly offset by decreased net oil-equivalent
production and lower natural gas realizations.

The company′s average sales price per barrel of crude oil and natural
gas liquids was approximately $89 in the 2011 quarter, compared with $71
a year ago. The average sales price of natural gas was $4.04 per
thousand cubic feet, down from $5.29 in last year′s first quarter.

Net oil-equivalent production of 694,000 barrels per day in the first
quarter 2011 was down 40,000 barrels per day, or about 5 percent, from a
year earlier. The decrease in production was associated with normal
field declines and weather- and maintenance-related downtime. Partially
offsetting this decrease was new production at both Perdido in the Gulf
of Mexico and from the acquisition of Atlas Energy, Inc.The net
liquids component of oil-equivalent production decreased approximately 5
percent in the 2011 first quarter to 482,000 barrels per day, while net
natural gas production declined about 8 percent to 1.27 billion cubic
feet per day.

International upstream earnings of $4.53 billion increased $960 million
from the first quarter 2010. Higher prices and sales volumes for crude
oil increased earnings between quarters. This benefit was partly offset
by higher operating expenses, including fuel, and tax items.
Depreciation expenses were also higher between periods. Foreign currency
effects decreased earnings by $116 million in the 2011 quarter, compared
with a decrease of $102 million a year earlier.

The average sales price for crude oil and natural gas liquids in the
2011 quarter was $95 per barrel, compared with $70 a year earlier. The
average price of natural gas was $5.03 per thousand cubic feet, up from
$4.61 in last year′s first quarter.

Net oil-equivalent production of 2.07 million barrels per day in the
first quarter 2011 was up approximately 17,000 barrels per day from a
year ago. The increase included 73,000 barrels per day associated with
higher production in Brazil, Nigeria, Thailand and Canada. Partially
offsetting this increase were a negative effect of higher prices on
cost-recovery volumes and other contractual provisions as well as
decreases due to weather- and maintenance-related downtime and normal
field declines. The net liquids component of oil-equivalent production
remained flat at 1.43 million barrels per day, while net natural gas
production was up about 3 percent to 3.83 billion cubic feet per day.

DOWNSTREAM

U.S. downstream operations earned $442 million in the first quarter
2011, compared with $82 million a year earlier. Earnings mainly
benefited from improved margins on refined product sales and higher
earnings from the 50 percent-owned Chevron Phillips Chemical Company
LLC. Also contributing to improved earnings was the absence of charges
for employee reductions recorded in the first quarter 2010.

Refinery crude-input of 879,000 barrels per day in the first quarter
2011 decreased 10,000 barrels per day from the year-ago period.

Refined product sales of 1.28 million barrels per day were down 69,000
barrels per day from the first quarter of 2010, mainly due to lower
gasoline and jet fuel sales. Branded gasoline sales decreased 13 percent
to 503,000 barrels per day, primarily due to previously completed exits
from selected eastern U.S. retail markets.

International downstream operations earned $180 million in the first
quarter 2011, compared with $114 million a year earlier. Earnings
benefited from the absence of charges for employee reductions recorded
in last year′s first quarter and from improved refined product margins
in the current period. These benefits were largely offset by unfavorable
mark-to-market effects on derivative instruments. Foreign currency
effects decreased earnings by $38 million in the 2011 quarter, compared
with a reduction of $98 million a year earlier.

Refinery crude-input of 1.03 million barrels per day increased 40,000
barrels per day from the first quarter of 2010. Total refined product
sales of 1.78 million barrels per day in the 2011 first quarter were 3
percent higher than a year earlier, mainly due to increased sales of
fuel oil and gasoline.

All Other consists of mining operations, power generation businesses,
worldwide cash management and debt financing activities, corporate
administrative functions, insurance operations, real estate activities,
alternative fuels and technology companies.

Net charges in the first quarter 2011 were $388 million, compared with
$368 million in the year-ago period. Foreign currency effects increased
net charges by $10 million in the 2011 quarter, compared with a $2
million reduction in net charges last year.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first quarter 2011 were $5.0
billion, compared with $4.4 billion in the first quarter 2010. The
amounts included approximately $200 million in 2011 and $300 million in
2010 for the company′s share of expenditures by affiliates, which did
not require cash outlays by the company. Expenditures for upstream
projects represented 92 percent of the companywide total in the first
quarter 2011. These amounts exclude the acquisition of Atlas Energy, Inc.

NOTICE

Chevron′s discussion of first quarter 2011 earnings with security
analysts will take place on Friday, April 29, 2011, at 8:00 a.m. PDT. A
webcast of the meeting will be available in a listen-only mode to
individual investors, media, and other interested parties on Chevron′s
Web site at www.chevron.com
under the 'Investors? section. Additional financial and operating
information will be contained in the Earnings Supplement that will be
available under 'Events and Presentations? in the 'Investors? section on
the Web site.

Chevron will post selected second quarter 2011 interim performance
data for the company and industry on its Web site on Monday, July 11,
2011, at 2:00 p.m. PDT. Interested parties may view this interim
data at www.chevron.com
under the 'Investors? section.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION

FOR
THE PURPOSE OF 'SAFE HARBOR? PROVISIONS OF THE

PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements relating to
Chevron′s operations that are based on management′s current
expectations, estimates and projections about the petroleum, chemicals
and other energy-related industries. Words such as 'anticipates,?
'expects,? 'intends,? 'plans,? 'targets,? 'projects,? 'believes,?
'seeks,? 'schedules,? 'estimates,? 'budgets? and similar expressions are
intended to identify such forward-looking statements. These statements
are not guarantees of future performance and are subject to certain
risks, uncertainties and other factors, some of which are beyond the
company′s control and are difficult to predict.

Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements. The
reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemical margins; actions of competitors or regulators; timing of
exploration expenses; timing of crude oil liftings; the competitiveness
of alternate-energy sources or product substitutes; technological
developments; the results of operations and financial condition of
equity affiliates; the inability or failure of the company′s
joint-venture partners to fund their share of operations and development
activities; the potential failure to achieve expected net production
from existing and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of planned
projects; the potential disruption or interruption of the company′s net
production or manufacturing facilities or delivery/transportation
networks due to war, accidents, political events, civil unrest, severe
weather or crude oil production quotas that might be imposed by the
Organization of Petroleum Exporting Countries; the potential liability
for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or
product changes under existing or future environmental statutes,
regulations and litigation; the potential liability resulting from other
pending or future litigation; the company′s future acquisition or
disposition of assets and gains and losses from asset dispositions or
impairments; government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, changes in fiscalterms or restrictions
on scope of company operations; foreign currency movements compared with
the U.S.  dollar; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies; and
the factors set forth under the heading 'Risk Factors? on pages 32
through 34 of the company′s 2010 Annual Report on Form 10-K. In
addition, such statements could be affected by general domestic and
international economic and political conditions. Unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.

Chevron Corporation

Lloyd Avram, 925-842-3422