Chevron Reports Fourth Quarter Net Income of $5.1 Billion, Compared to $5.3 Billion in Fourth Quarter 2010

Chevron Corporation (NYSE: CVX) today reported earnings of $5.1 billion
($2.58 per share ? diluted) for the fourth quarter 2011, compared with
$5.3 billion ($2.64 per share ? diluted) in the 2010 fourth quarter.

Full-year 2011 earnings were $26.9 billion ($13.44 per share ? diluted),
up 41 percent from $19.0 billion ($9.48 per share ? diluted) earned in
2010.

Sales and other operating revenues in the fourth quarter 2011 were $58
billion, up from $52 billion in the year-ago period, mainly due to
higher prices for crude oil and refined products.

Earnings Summary

'Chevron had an outstanding year financially,? said Chairman and CEO
John Watson, 'with record earnings and cash flow. This reflects our
exceptionally strong upstream portfolio, as well as higher 2011 crude
prices. Full-year earnings also benefited from improved downstream sales
margins. Our financial strength enabled us to both invest in our
development projects and to acquire several new resource opportunities.
At the same time, we raised the annual dividend twice and increased
outlays for our common stock repurchase program. Beyond our strong
financial performance, we also had an outstanding year in terms of oil
and gas reserves replacement.?

Watson continued, 'In the fourth quarter, we took another important step
forward in our efforts to commercialize the company′s significant
natural gas resources with the start of construction at the Wheatstone
liquefied natural gas project in Australia. We also recently announced
two additional natural gas discoveries in the Carnarvon Basin that will
help underpin future LNG expansion opportunities.At the same
time, we ramped up production to over 330 million cubic feet per day at
the Platong II natural gas project in the Gulf of Thailand.?

Watson commented that the company added approximately 1.67 billion
barrels of net oil-equivalent reserves in 2011. These additions, which
are subject to final reviews, equate to 171 percent of net
oil-equivalent production for the year. 'The Wheatstone Project was the
largest component of our reserve adds this year,? noted Watson, 'and we
continued to build legacy positions with additions from acquisitions in
the Marcellus Shale and multiple development projects in the deepwater
Gulf of Mexico.? The company will provide additional details relating to
2011 reserve additions in its Annual Report on Form 10-K scheduled for
filing with the SEC on February 23.

'In the downstream business, we successfully completed the second year
of a multiyear plan to improve returns,? Watson added. Efforts continued
on streamlining the asset portfolio, with completion of the sale of
refining and marketing assets in the United Kingdom and Ireland,
including the Pembroke Refinery. The company also completed the sale of
its marketing businesses in five countries in Africa, and its fuels
marketing and aviation businesses in 16 countries in the Caribbean and
Latin America.

The company purchased $1.25 billion of its common stock in the fourth
quarter 2011 under its share repurchase program. At the end of the year,
balances of cash, cash equivalents, time deposits and marketable
securities totaled $20.1 billion, up $3 billion from the end of 2010.
Total debt at December 31, 2011 was $10.2 billion, down $1.3 billion
from a year earlier.

UPSTREAM

Worldwide net oil-equivalent production was 2.64 million barrels per day
in the fourth quarter 2011, down from 2.79 million barrels per day in
the 2010 fourth quarter. Production increases from project ramp-ups in
Thailand, the United States, Nigeria and Brazil, and new volumes
stemming from acquisitions in the Marcellus Shale were more than offset
by normal field declines, maintenance-related downtime and a 25,000
barrels per day negative effect of higher prices on entitlement volumes.

U.S. Upstream

U.S. upstream earnings of $1.61 billion in the fourth quarter 2011 were
up $675 million from a year earlier. The benefit of higher crude oil
realizations was partly offset by lower production.

The company′s average sales price per barrel of crude oil and natural
gas liquids was $101 in the fourth quarter 2011, up from $76 a year ago.
The average sales price of natural gas was $3.62 per thousand cubic
feet, compared with $3.65 in last year′s fourth quarter.

Net oil-equivalent production of 661,000 barrels per day in the fourth
quarter 2011 was down 37,000 barrels per day, or 5 percent, from a year
earlier. The decrease in production was associated with normal field
declines and maintenance-related downtime. Partially offsetting this
decrease was new Marcellus Shale production and increases at the Perdido
project in the Gulf of Mexico. The net liquids component of
oil-equivalent production decreased 7 percent in the 2011 fourth quarter
to 447,000 barrels per day, while net natural gas production decreased 1
percent to 1.29 billion cubic feet per day.

International Upstream

International upstream earnings of $4.13 billion increased $215 million
from the fourth quarter 2010. Higher realizations for crude oil
increased earnings between quarters. This benefit was partly offset by
higher tax charges, lower volumes and higher operating expenses. Foreign
currency effects had little net impact on earnings in the 2011 fourth
quarter, compared with a decrease of $53 million a year earlier.

The average sales price for crude oil and natural gas liquids in the
2011 fourth quarter was $101 per barrel, up from $79 a year earlier. The
average price of natural gas was $5.55 per thousand cubic feet, compared
with $4.81 in last year′s fourth quarter.

Net oil-equivalent production of 1.98 million barrels per day in the
fourth quarter 2011 was down 108,000 barrels per day from a year ago.
Production increases from project ramp-ups in Thailand, Nigeria and
Brazil were more than offset by maintenance-related downtime, normal
field declines, and a 25,000 barrels per day negative effect of higher
prices on entitlement volumes. The net liquids component of
oil-equivalent production decreased 7 percent to 1.37 million barrels
per day, while net natural gas production declined 2 percent to 3.66
billion cubic feet per day.

DOWNSTREAM

U.S. Downstream

U.S. downstream operations lost $204 million in the fourth quarter 2011,
compared with earnings of $475 million a year earlier. The decline
primarily reflected the absence of a $400 million gain on the sale of
the company′s ownership interest in the Colonial Pipeline Company
recognized in the fourth quarter 2010, and weaker margins on refined
product sales.

Refinery crude oil input of 763,000 barrels per day in the fourth
quarter 2011 decreased 113,000 barrels per day from the year-ago period,
mainly due to maintenance-related downtime at the Richmond Refinery.
Refined product sales of 1.23 million barrels per day were down 69,000
barrels per day from the fourth quarter of 2010, mainly due to lower
gasoline and residual fuel oil sales. Branded gasoline sales decreased 3
percent to 515,000 barrels per day due to weaker demand.

International Downstream

International downstream operations earned $143 million in the fourth
quarter 2011, compared with $267 million a year earlier. The decline was
primarily due to weaker margins. Foreign currency effects decreased
earnings by $81 million in the 2011 quarter, compared with a decrease of
$52 million a year earlier.

Refinery crude oil input of 805,000 barrels per day decreased 235,000
barrels per day from the fourth quarter of 2010, primarily due to the
sale of the Pembroke Refinery. Total refined product sales of 1.57
million barrels per day in the 2011 fourth quarter were 12 percent lower
than a year earlier, primarily related to the sale of the company′s
refining and marketing assets in the United Kingdom and Ireland.
Excluding the impact of 2011 asset sales, sales volumes were 3 percent
higher between periods.

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,
energy services, alternative fuels, and technology companies.

Net charges in the fourth quarter 2011 were $553 million, compared with
$294 million in the year-ago period. The change between periods was
mainly due to higher employee compensation and benefits expenses, and
higher corporate tax charges.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in 2011 were $29.1 billion,
compared with $21.8 billion in 2010. The amounts included $1.7 billion
in 2011 and $1.4 billion in 2010 for the company′s share of expenditures
by affiliates, which did not require cash outlays by the company.
Expenditures for upstream represented 89 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 fourth quarter 2011 earnings with security
analysts will take place on Friday, January 27, 2012, at 8:00 a.m. PST.
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 first quarter 2012 interim performance
data for the company and industry on its Web site on Tuesday, April 10,
2012, 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 release could also have
material adverse effects on forward-looking statements.

Chevron Corporation

Lloyd Avram, 925-790-6930