Chevron continues to pursue the acquisition of Hess Corporation, purchasing additional shares of Hess common stock. However, the acquisition is subject to conditions, including the resolution of an arbitration regarding preemptive rights in the Stabroek Block joint operating agreement.

Chevron is targeting $10-15 billion of asset sales over the five-year period ending in 2028. Asset dispositions and restructurings may result in significant gains or losses in future periods.

In January 2025, TCO started oil production at its Future Growth Project (FGP) and by the end of first quarter, FGP had ramped up to its nameplate capacity. These project start-ups are expected to increase free cash flow for the company.

Chevron and Hess are working to complete the merger as soon as practicable. However, neither Chevron nor Hess can predict the actual date on which the transaction will be completed, if at all, because it is subject to conditions beyond each company's control.

The company has announced plans to achieve $2-3 billion in structural cost reductions by the end of 2026. These cost savings will largely come from optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including expanded use of global capability centers.

Chevron expects share repurchases in the second quarter 2025 to be between $2.5-$3.0 billion. Repurchases may be made from time to time in the open market, by block purchases, in privately negotiated transactions or in such other manner as determined by the company.

The acquisition of Hess Corporation is subject to conditions, including the resolution of an arbitration regarding preemptive rights in the Stabroek Block joint operating agreement and approval of any Guyanese governmental body, agency or authority that asserts its approval is required in connection with the transaction.

Governmental and other plaintiffs have brought legal proceedings against fossil fuel producing companies, including Chevron entities, purporting to seek legal and equitable relief to address alleged impacts of climate change. Due to the unprecedented nature of the suits, the company is unable to estimate any range of possible liability, but given the uncertainty of litigation there can be no assurance that the cases will not have a material adverse effect on the company's results of operations and financial condition.

Chevron entities are defendants in 37 lawsuits related to coastal erosion in Louisiana. A jury in a Louisiana state court awarded Plaquemines Parish $744.6 million in a trial against Chevron entities. The company has recorded an accrual of $131 million, but the company is unable to estimate the range of reasonably possible loss that may be attributable to liabilities, if any, in excess of the amount accrued. To the extent the company is required to pay remediation damages in these cases, it may have a material adverse effect on our financial position and results of operations.

The company will continue to develop oil and gas resources to meet customers' and consumers' demand for energy. At the same time, Chevron believes that the future of energy is lower carbon. The company will continue to maintain flexibility in its portfolio to be responsive to changes in policy, technology, and customer and consumer preferences.

Chevron aims to grow its oil and gas business, lower the carbon intensity of its operations and grow new businesses in renewable fuels, carbon capture and offsets, hydrogen, power generation for data centers, and emerging technologies.

Chevron has interests in Venezuelan assets operated by independent affiliates. Chevron has been conducting limited activities in Venezuela consistent with the authorization provided pursuant to licenses issued by the United States government.

The company has announced plans to achieve $2-3 billion in structural cost reductions by the end of 2026. These cost savings will largely come from optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including expanded use of global capability centers.

The company is actively managing its contracting, procurement and supply chain activities to effectively manage costs and facilitate supply chain resiliency and continuity in support of the company's operational goals. Third party costs for capital and operating expenses can be subject to external factors beyond the company's control.

Chevron utilizes contracts with various pricing mechanisms, which may result in a lag before the company's costs reflect changes in market trends.

The company has announced plans to achieve $2-3 billion in structural cost reductions by the end of 2026. These cost savings will largely come from optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including expanded use of global capability centers.

Chevron integrates climate change-related issues and the regulatory and other responses to these issues into its strategy and planning, capital investment reviews and risk management tools and processes, where it believes they are applicable.

Significant uncertainty remains as to the pace and extent to which the transition to a lower carbon future will progress, which is dependent, in part, on further advancements and changes in policy, technology, and customer and consumer preferences.

Chevron repurchased 25.0 million shares for $3.9 billion in first quarter 2025. Chevron expects share repurchases in the second quarter 2025 to be between $2.5-$3.0 billion.

Capital expenditures totaled $3.9 billion in the first three months of 2025, down $162 million from the year-ago period largely due to lower spend in downstream. Proceeds and deposits related to asset sales and returns of investment totaled $600 million in the first three months of 2025, compared to $104 million in the year-ago period.

The company remains committed to retaining high-quality debt ratings.

Chevron supports the Paris Agreement's global approach to governments addressing climate change and continues to take actions to help lower the carbon intensity of its operations while continuing to meet the demand for energy.

Chevron integrates climate change-related issues and the regulatory and other responses to these issues into its strategy and planning, capital investment reviews and risk management tools and processes, where it believes they are applicable.

Chevron aims to grow its oil and gas business, lower the carbon intensity of its operations and grow new businesses in renewable fuels, carbon capture and offsets, hydrogen, power generation for data centers, and emerging technologies.

The Brent price averaged $76 per barrel for the first three months of 2025, compared with $83 per barrel during the first three months of 2024, and ended April at about $63 per barrel. For every dollar change in Brent crude oil prices, the company's annual after-tax earnings and cash flow sensitivity is approximately $450 million.

The U.S. announced the imposition of tariffs on imports from our trade partners and could modify or announce additional tariffs in future periods. Only a minor portion of the company's total third-party spend is exposed to tariffs, and the financial impact is currently not expected to be material.

The company closely monitors developments in the countries in which it operates and holds investments and seeks to manage risks in operating its facilities and businesses.