Chevron Reports Second Quarter Net Income of $7.7 Billion, Up From $5.4 Billion in Second Quarter 2010

Chevron Corporation (NYSE:CVX) today reported earnings of $7.7 billion
($3.85 per share ? diluted) for the second quarter 2011, compared with
$5.4 billion ($2.70 per share ? diluted) in the 2010 second quarter.

Sales and other operating revenues in the second quarter 2011 were $67
billion, up from $51 billion in the year-ago period, mainly due to
higher prices for crude oil and refined products.

'Our second quarter financial performance was very strong,? said
Chairman and CEO John Watson. 'Earnings gains versus last year′s quarter
were primarily in our oil and gas exploration and production business,
resulting from higher crude oil prices on world markets.?

Watson commented, 'We continued to advance our major capital projects,
resumed important exploration and development drilling activity in the
deepwater Gulf of Mexico and acquired new upstream resource
opportunities in the second quarter.? These achievements include:

• Kazakhstan/Russia ? Marked the start of the construction phase
  for expansion of the Caspian Pipeline Consortium′s pipeline, which
  carries crude oil from western Kazakhstan to a dedicated terminal on
  the Black Sea. The design capacity of the pipeline will increase to
  1.4 million barrels per day from its current capacity of 730,000
  barrels per day. The project is planned to be implemented in three
  phases, with capacity increasing progressively from 2012 to 2015.
  
• Australia ? Received recommendation of conditional
  environmental approval for the Wheatstone liquefied natural gas (LNG)
  project from Western Australia′s Environmental Protection Authority.
  The company will continue negotiations to finalize the permit
  conditions as it works toward a final investment decision on the
  project in the second half of this year.
  
• Australia ? Signed binding Sales and Purchase Agreements with
  Tokyo Electric for Wheatstone LNG.
  
• Bulgaria ?Awarded an exploration permit for a
  prospective shale gas block of more than 1 million acres in
  northeastern Bulgaria.
  
• United States ? Returned to work in the Gulf of Mexico with
  three rigs active in the deepwater, drilling the Moccasin exploration
  well, the Buckskin appraisal well and the Tahiti 2 development
  program. The company is also drilling on the Gulf of Mexico Shelf to
  test the ultra-deep gas play.
  
• United States ?Acquired additional acreage in the
  Marcellus Shale, including from Chief Oil and Gas LLC and Tug Hill,
  Inc., primarily in Pennsylvania.
  

'We reached an important milestone in streamlining our downstream asset
portfolio with receipt of government approval for the planned sale of
our refining and marketing assets in the United Kingdom and Ireland,?
Watson added. The sale is expected to close in the third quarter. The
company also completed the sale of its fuels-marketing and aviation
businesses in three Central American countries in the second quarter
2011, as well as other assets in China and North America.

The company purchased $1 billion of its common stock in the second
quarter 2011 under its share repurchase program.

UPSTREAM

Worldwide net oil-equivalent production was 2.69 million barrels per day
in the second quarter 2011, down from 2.75 million barrels per day in
the 2010 second quarter. Production increases from project ramp-ups in
Canada and the United States and new volumes stemming from the
acquisition of Atlas Energy, Inc. were more than offset by an
approximately 40,000 barrels per day negative effect of higher prices on
volumes related to cost-recovery and variable-royalty contract terms,
and normal field declines.

U.S. upstream earnings of $1.95 billion in the second quarter 2011 were
up $860 million from a year earlier. The benefit of higher crude oil
realizations was partly offset by higher operating expenses.

The company′s average sales price per barrel of crude oil and natural
gas liquids was $104 in the second quarter 2011, compared with $71 a
year ago. The average sales price of natural gas was $4.35 per thousand
cubic feet, up from $4.01 in last year′s second quarter.

Net oil-equivalent production of 694,000 barrels per day in the second
quarter 2011 was down 2 percent, or 14,000 barrels per day, from a year
earlier. The decrease in production was associated with normal field
declines and maintenance-related downtime. Partially offsetting this
decrease was production from the acquisition of Atlas Energy, Inc. and
increases at Perdido in the Gulf of Mexico.The net liquids
component of oil-equivalent production decreased 2 percent in the 2011
second quarter to 478,000 barrels per day, while net natural gas
production declined 1 percent to 1.30 billion cubic feet per day.

International upstream earnings of $4.92 billion increased $1.47 billion
from the second quarter 2010. Higher realizations for crude oil
increased earnings between quarters. This benefit was partly offset by
higher operating expenses, including fuel, and increased exploration
expense. Tax charges were also higher between periods. Foreign currency
effects increased earnings by $26 million in the 2011 second quarter,
compared with an increase of $107 million a year earlier.

The average sales price for crude oil and natural gas liquids in the
2011 second quarter was $107 per barrel, compared with $71 a year
earlier. The average price of natural gas was $5.49 per thousand cubic
feet, up from $4.40 in last year′s second quarter.

Net oil-equivalent production of 2.00 million barrels per day in the
second quarter 2011 was down 38,000 barrels per day from a year ago.
Production increases from project ramp-ups in Canada and Brazil were
more than offset by an approximately 40,000 barrels per day negative
effect of higher prices on volumes related to cost-recovery and
variable-royalty contractual terms, and normal field declines. The net
liquids component of oil-equivalent production decreased 2 percent to
1.39 million barrels per day, while net natural gas production declined
1 percent to 3.67 billion cubic feet per day.

DOWNSTREAM

U.S. downstream operations earned $564 million in the second quarter
2011, compared with $433 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.

Refinery crude-input of 875,000 barrels per day in the second quarter
2011 decreased 42,000 barrels per day from the year-ago period.

Refined product sales of 1.27 million barrels per day were down 140,000
barrels per day from the second quarter of 2010, mainly due to lower
gasoline and jet fuel sales. Branded gasoline sales decreased 16 percent
to 510,000 barrels per day, largely due to previously completed exits
from selected eastern U.S. retail markets.

International downstream operations earned $480 million in the second
quarter 2011, compared with $542 million a year earlier. Earnings
benefited from improved refined product margins in the 2011 second
quarter. However, foreign currency effects decreased earnings by $94
million in the 2011 quarter, compared with an increase of $131 million a
year earlier.

Refinery crude-input of 1.02 million barrels per day increased 63,000
barrels per day from the second quarter of 2010. Total refined product
sales of 1.83 million barrels per day in the 2011 second quarter were 3
percent higher than a year earlier, mainly due to increased sales of
fuel oil.

ALL OTHER

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 second quarter 2011 were $183 million, compared with
$108 million in the year-ago period. The change between periods was
mainly due to higher corporate tax charges and employee compensation and
benefit expenses. Foreign currency effects increased net charges by $13
million in the 2011 second quarter, compared with a $3 million reduction
in net charges last year.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first six months of 2011
were $13.4 billion, compared with $9.4 billion in the corresponding 2010
period. This represents 52 percent of the company′s planned annual
capital and exploratory expenditures announced in December 2010. The
amounts included $584 million in 2011 and $609 million in 2010 for the
company′s share of expenditures by affiliates, which did not require
cash outlays by the company. Expenditures for upstream represented 91
percent of the companywide total in 2011. These amounts exclude the
acquisition of Atlas Energy, Inc., which was accounted for as a business
combination.

NOTICE

Chevron′s discussion of second quarter 2011 earnings with security
analysts will take place on Friday, July 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 third quarter 2011 interim performance
data for the company and industry on its Web site on Tuesday, October
11, 2011, at 2:00 p.m. PDT. Interested parties may view this
interim data at www.chevron.com
under the 'Investors? section.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

FOR
THE PURPOSE OF 'SAFE HARBOR? PROVISIONS OF THE

PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

This press releasecontains 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 fiscal terms 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. Other unpredictable or
unknown factors not discussed in this press releasecould also
have material adverse effects on forward-looking statements.

Chevron Corporation

Lloyd Avram, 925-842-3422