Chevron Reports Second Quarter Net Income of $7.2 Billion, Compared to $7.7 Billion in Second Quarter 2011

Chevron Corporation (NYSE: CVX) today reported earnings of $7.2 billion
($3.66 per share ? diluted) for the second quarter 2012, compared with
$7.7 billion ($3.85 per share ? diluted) in the 2011 second quarter.

Sales and other operating revenues in the second quarter 2012 were $60
billion, compared to $67 billion in the year-ago period.

'Our second quarter earnings and cash flow were among our strongest
ever, even with softer oil markets,? said Chairman and CEO John Watson.
'Despite current weakness in the global economy, we continue to invest
in our long-term growth projects to help deliver affordable energy to
meet future demand. We took several important steps to advance our major
upstream capital projects, in particular achieving milestones in our
natural gas development projects in the Asia-Pacific region. We also
expanded our global exploration resource acreage, including new leases
in the Gulf of Mexico where we already hold a significant position.?

Important recent upstream milestones include:

• Australia ? Signed nonbinding Heads of Agreement with Tohoku
  Electric for LNG offtake, and additional binding agreements with Tokyo
  Electric for LNG offtake and an equity interest, for the Wheatstone
  Project. To date, more than 80 percent of Chevron′s equity LNG from
  Wheatstone is covered under long-term agreements with customers in
  Asia.
  
• Australia ? Announced a natural gas discovery, Pontus-1, in the
  Carnarvon Basin in 47.3 percent-owned Block WA-37-L.
  
• United Kingdom ? Initiated front-end engineering and design
  (FEED) for the deepwater Rosebank Project west of the Shetland Islands.
  
• Kurdistan Region of Iraq ? Acquired an 80 percent interest and
  operatorship in the Rovi and Sarta blocks.
  
• Suriname ? Acquired a 50 percent interest in two offshore
  exploration blocks.
• Ukraine ? Bid successfully for a 50 percent interest and
  operatorship in a shale gas block.
  
• United States ? Bid successfully for additional shelf and
  deepwater exploration acreage in the Gulf of Mexico.
  

'In the downstream business, we continued divesting non-core assets,
while also furthering work on new growth investments,? Watson added. The
company completed the sale of several of its fuels-marketing and
aviation businesses in the Caribbean, and the company′s 50 percent-owned
GS Caltex affiliate in South Korea completed the sale of its power
operations. On July 26, 2012, Caltex Australia Ltd., the company′s 50
percent-owned affiliate, announced that it plans to convert its Kurnell
Refinery to an import terminal in 2014. In addition, the company′s 50
percent-owned Chevron Phillips Chemical Company LLC announced the
execution of FEED contracts for an ethylene cracker at its Cedar Bayou
facility in Baytown, Texas and two polyethylene facilities near its
Sweeny facility in Old Ocean, Texas.

The company purchased $1.25 billion of its common stock in the second
quarter 2012 under its share repurchase program.

UPSTREAM

Worldwide net oil-equivalent production was 2.62 million barrels per day
in the second quarter 2012, down from 2.69 million barrels per day in
the 2011 second quarter. Production increases from project ramp-ups in
Thailand, the United States and Nigeria were more than offset by normal
field declines, the shut-in of the Frade Field in Brazil,
maintenance-related downtime and dispositions.

U.S. upstream earnings of $1.32 billion in the second quarter 2012 were
down $632 million from a year earlier, primarily due to lower crude oil
and natural gas realizations, lower production and the absence of gains
on asset sales.

The company′s average sales price per barrel of crude oil and natural
gas liquids was $97 in the second quarter 2012, down from $104 a year
ago. The average sales price of natural gas was $2.17 per thousand cubic
feet, compared with $4.35 in last year′s second quarter.

Net oil-equivalent production of 659,000 barrels per day in the second
quarter 2012 was down 35,000 barrels per day, or 5 percent, from a year
earlier. The decrease in production was associated with normal field
declines and an absence of volumes associated with Cook Inlet, Alaska,
assets sold in 2011. Partially offsetting this decrease was ramp-up at
the Perdido and Caesar/Tonga projects in the Gulf of Mexico.The
net liquids component of oil-equivalent production decreased 4 percent
in the 2012 second quarter to 461,000 barrels per day, while net natural
gas production decreased 9 percent to 1.19 billion cubic feet per day.

International upstream earnings of $4.30 billion decreased $619 million
from the second quarter 2011. The decline between quarters was primarily
due to lower realizations and volumes for crude oil, as well as higher
exploration expense, partially offset by higher realizations for natural
gas. Foreign currency effects increased earnings by $219 million in the
2012 quarter, compared with an increase of $26 million a year earlier.

The average sales price for crude oil and natural gas liquids in the
2012 second quarter was $99 per barrel, down from $107 a year earlier.
The average price of natural gas was $6.10 per thousand cubic feet,
compared with $5.49 in last year′s second quarter.

Net oil-equivalent production of 1.97 million barrels per day in the
second quarter 2012 was down 35,000 barrels per day from a year ago.
Production increases from project ramp-ups in Thailand and Nigeria were
more than offset by normal field declines, the shut-in of the Frade
Field in Brazil and maintenance-related downtime.The net liquids
component of oil-equivalent production decreased 5 percent to 1.32
million barrels per day, while net natural gas production increased 6
percent to 3.89 billion cubic feet per day.

DOWNSTREAM

U.S. downstream operations earned $802 million in the second quarter
2012, compared with earnings of $564 million a year earlier. Earnings
mainly benefited from improved margins on refined product sales.

Refinery crude oil input of 928,000 barrels per day in second quarter
2012 increased 53,000 barrels per day from the year-ago period. Refined
product sales of 1.27 million barrels per day were essentially flat with
a year ago. Branded gasoline sales increased 2 percent to 521,000
barrels per day.

International downstream operations earned $1.08 billion in the second
quarter 2012, compared with $480 million a year earlier. Current quarter
earnings benefited from gains on asset sales of approximately $200
million, primarily reflecting the sale of GS Caltex′s power operations
in South Korea. Improved refined product margins and a favorable change
in effects on derivative instruments also contributed to higher earnings
in the 2012 quarter. Foreign currency effects decreased earnings by $22
million in the 2012 quarter, compared with a decrease of $94 million a
year earlier.

Refinery crude oil input of 870,000 barrels per day decreased 147,000
barrels per day from second quarter 2011, primarily due to the third
quarter 2011 sale of the Pembroke Refinery in the United Kingdom. Total
refined product sales of 1.57 million barrels per day in the 2012 second
quarter were 14 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 2 percent lower 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 second quarter 2012 were $291 million, compared with
$183 million in the year-ago period. The change between periods was
mainly due to higher corporate tax items and other corporate charges,
partially offset by a gain on the sale of a mining investment.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first six months of 2012
were $14.2 billion, compared with $13.4 billion in the corresponding
2011 period. The amounts included approximately $827 million in 2012 and
$584 million in 2011 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 the first six months of 2012.

NOTICE

Chevron′s discussion of second quarter 2012 earnings with security
analysts will take place on Friday, July 27, 2012, 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 2012 interim performance
data for the company and industry on its Web site on Tuesday, October 9,
2012, 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,? 'forecasts,? 'projects,?
'believes,? 'seeks,? 'schedules,? 'estimates,? 'budgets,? 'outlook? 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 29
through 31 of the company′s 2011 Annual Report on Form 10-K. In
addition, such results 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

Kurt Glaubitz, 925-790-6928