Chevron Issues Interim Update: Sees Q4 Earnings Notably Higher Than Q3

Chevron Corporation (NYSE: CVX) today reported in its interim update thatearnings for the fourth quarter 2012 are expected to be notably higher thanthird quarter 2012. Upstream results are projected to be higher betweensequential quarters, reflecting increased gains on asset transactions andhigher liftings. Downstream earnings in the fourth quarter are also expectedto be higher, largely reflecting a positive swing in timing effects, despite asharp decline in industry refining margins.Basis for Comparison in Interim UpdateThis interim update contains certain industry and company operating data forthe fourth quarter 2012. The production volumes, realizations, margins andcertain other items in the report are based on a portion of the quarter andare not necessarily indicative of Chevron's full quarterly results to bereported on February 1, 2013. The reader should not place undue reliance onthis data.Readers are advised that portions of the commentary below compare results forthe first two months of the fourth quarter 2012 to full third quarter 2012results, as indicated. UPSTREAMThe table that follows includes information on production and price indicatorsfor crude oil and natural gas for specific markets. Actual realizations mayvary from indicative pricing due to quality and location differentials and theeffect of pricing lags. International earnings reflect actual liftings, whichmay differ from production due to the timing of cargoes and other factors.     2011   2012 4Q 4Q 4Q 1Q   2Q   3Q   thru   thru Nov DecU.S. UpstreamNet Production:Liquids MBD 447 456 461 440 467 n/aNatural Gas MMCFD 1,290 1,170 1,186 1,184 1,261 n/aTotal MBOED 661 651 659 637 676 n/aOil-Equivalent  Pricing:Avg. WTI Spot $/Bbl 93.98 103.00 93.34 92.25 88.21 88.22PriceAvg. MidwaySunset Posted $/Bbl 107.83 112.01 102.72 100.71 98.32 98.59Price^1Nat. Gas-HenryHub "Bid Week" $/MCF 3.55 2.73 2.21 2.81 3.25 3.40Avg.Nat. Gas-CABorder "Bid $/MCF 3.74 2.96 2.40 2.46 2.96 3.37Week" Avg.Nat. Gas-RockyMountain "Bid $/MCF 3.35 2.56 1.88 2.91 3.15 3.56Week" Avg.  AverageRealizations:Crude $/Bbl 105.37 108.37 103.91 97.34 97.61 n/aLiquids $/Bbl 100.65 101.93 97.46 90.77 91.11 n/aNatural Gas $/MCF 3.62 2.48 2.17 2.63 3.14 n/a  InternationalUpstreamNet Production:Liquids MBD 1,369 1,338 1,317 1,249 1,335 n/aNatural Gas MMCFD 3,658 3,849 3,894 3,778 3,900 n/aTotal Oil MBOED 1,980 1,980 1,965 1,879 1,986 n/aEquivalent  Pricing:Avg. Brent Spot $/Bbl 109.35 118.60 108.29 109.50 110.38 110.08Price ^2  AverageRealizations:Liquids $/Bbl 101.33 110.03 99.21 98.20 100.06 n/aNatural Gas   $/MCF   5.55   5.88   6.10   6.03   5.94   n/a^1 As of second quarter 2012, Avg. Midway Sunset Posted Price is based on theaverage of four companies' posted prices to better reflect realizations. Priorto second quarter 2012, the price is based only on the Chevron averageposting.