CHEVRON
Research Assignment -Abhishek Bakshi
CORPORATE OVERVIEW
Chevron is one of the largest integrated energy companies in the world. Headquartered in San Ramon, California, and conducting business in approximately 180 countries, the company is engaged in every aspect of the oil and natural gas industry, including exploration and production; refining, marketing and transportation; chemicals manufacturing and sales; and power generation . Chevron — including its share of equity affiliates — is among the largest publicly traded integrated energy companies in the world in net proved crude oil and natural gas reserves, adding 1.5 billion barrels-of-oil-equivalent (BOE) with the acquisition of Unocal in 2005.
The company traces its earliest roots to an 1879 oil discovery at Pico Canyon, north of Los Angeles, a find that led to the formation of the Pacific Coast Oil Co., which later evolved into the Standard Oil Co. of California and, later, Chevron Corp.Another major root in the genealogical chart is the 1901 formation of The Texas Fuel Co. in Beaumont, Texas. It later became known as The Texas Co. and, eventually, Texaco Inc. In 2001, these entities merged to form ChevronTexaco. The name was changed to Chevron in 2005 to present a more unified presence in the global marketplace. The acquisition of Unocal Corporation in 2005 strengthened Chevron's position as a global energy leader, enhancing assets in key basins around the world.
With the addition of former Unocal employees, the company's diverse and highly skilled global work force stands at approximately 53,000 employees (excluding about 6,000 service station employees).In 2005, Chevron produced more than 2.5 million barrels of oil equivalent per day, with approximately 70 percent of the volume occurring outside the United States and in more than 20 different countries.The acquisition of Unocal in 2005 added 1.5 billion barrels of oil equivalent reserves. Total reserves added during the year equated to 175 percent of production for the period.With a global refining capacity of more than 2 million barrels of oil per day at year-end 2005, Chevron also has a marketing network that supports approximately 26,500 retail outlets - including those of affiliate companies - in nearly 90 countries. The company has interests in 16 power-generating assets in the United States and Asia, three of which were added with the Unocal acquisition in 2005.
Chevron’s main businesses include
· Exploration & Production
· Refining Marketing & Transportation
· Chemicals (Consists mainly of its joint venture, Chevron Phillips Chemical Co)
· Other businesses:Coal mining operations, power generations businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, technology companies .
Product Brands
Chevron is a top marketer of refined products, including gasoline, lubricants, and aviation and marine fuels, in North America.
Texaco products and services are sold predominantly in the United States, Europe, Latin America and West Africa.
Caltex products and services are sold in Asia, Australia and parts of the Middle East and Africa.
Key Financial Facts
As of December 31st, 2005 Chevron’s net revenues was $193.6 billion, its net income $14.1 billion and its Earnings/Share –Diluted: $6.54.
CORPORATE STRATEGY
Press Releases
Chevron and Keenan to Build and Operate $100 Million Central Utility Plant at National Interagency Biodefense Campus - 07 Aug 2006
FREDERICK, Md., Aug. 7, 2006 -- Chevron Corporation (NYSE: CVX) today announced that the team of Chevron Energy Solutions and Keenan Development will build and operate a $100 million central utility plant to provide secure energy to the National Interagency Biodefense Campus (NIBC) under construction at the United States Army's Fort Detrick in Frederick, Maryland.
This is the largest of many federal projects that Chevron Energy Solutions, a Chevron subsidiary, has developed in support of government efforts to improve energy reliability and efficiency at federal facilities nationwide.
Chevron Reports Second Quarter Net Income of $4.4 Billion, Up 18 Percent from $3.7 Billion in Second Quarter 2005 - 28 Jul 2006
SAN RAMON, Calif., July 28, 2006 -- Chevron Corporation today reported net income of $4.4 billion ($1.97 per share – diluted) for the second quarter 2006, compared with $3.7 billion ($1.76 per share – diluted) in the year-ago period. For the first six months of 2006, net income was $8.3 billion ($3.77 per share – diluted), compared with $6.4 billion ($3.04 per share – diluted) in the 2005 first half.
Sales and other operating revenues in the second quarter 2006 were $52 billion, up $5 billion from the same period in 2005. The increase was mainly attributable to higher prices for crude oil and refined products and the inclusion of revenues related to the former Unocal operations acquired in August 2005. Partially offsetting these effects in the 2006 period was the impact of an accounting-rule change beginning in the second quarter for certain purchase and sale contracts. Six-month 2006 sales and other operating revenues were $106 billion, up from $88 billion in the 2005 first half.
Chevron Announces Quarterly Dividend - 26 Jul 2006
SAN RAMON, Calif., July 26, 2006 -- The Board of Directors of Chevron Corporation on July 26, 2006 declared a quarterly dividend of 52 cents per share. The dividend is payable September 11, 2006, to stockholders of record as of August 18, 2006. Chevron has an unbroken record of annual dividend payment increases of 19 consecutive years
Chevron Announces Results of Sidetrack at Big Foot in Deepwater Gulf of Mexico - 26 Jul 2006
HOUSTON, July 26, 2006 -- Chevron Corporation (NYSE: CVX) today announced that operations on the sidetrack well at the Big Foot discovery on Walker Ridge 29 have concluded. The block is approximately 225 miles south of New Orleans, La., and is located in approximately 5,000 feet of water.
Global Refining President Jeet Bindra Elected to Reliance Petroleum Ltd.'s Board of Directors – 21 Jul 2006
SAN RAMON, Calif., July 21, 2006 -- Chevron Corporation (NYSE: CVX) today announced that Reliance Petroleum Ltd. (RPL) has elected Jeet Bindra, president of Chevron Global Refining, to its board of directors effective July 21, 2006. David C. Reeves, president of Chevron Global Supply and Trading, has been named an alternate representative to the RPL board.
In April 2006, Chevron announced that it was acquiring a 5 percent stake in RPL, a company formed by Reliance Industries Ltd. (RIL) to own and operate a new 580,000-barrel-per-day export refinery being constructed in Jamnagar, India. The refinery is due to be completed by the end of 2008 and when combined with RIL's existing 650,000-barrel-per-day refinery, stands to become the largest refining complex in the world based on current capacities
CAREER AND HIRING
Ø Chevron has a dedicated MBA recruitment and development program for its Global Supply and Trading, Finance and Marketing initiatives. They actively recruit MBA graduates that have a strong leadership potential, 3-6 years of work experience, solid academic and analytical background and a desire to work in diverse locations around the globe.
Ø Under this program an employee would have to complete 4 rotational assignments during the first 24 months. The rotations begin either in Houston (Global Supply & Trading) or in their headquarters (San Ramon California) followed by rotations anywhere in the world.
Ø Rotational assignments vary from Crude Supply & Trading, Products Supply & Trading, Fuel and Marine Marketing and Global Aviation for Global Supply & Trading to Corporate Comptroller's, Corporate Treasury, Corporate Strategic Planning, Global Upstream/Downstream and Corporate Audit for Finance.
Ø Their Finance MBA development program recruits candidates with permanent US work authorization only.
Ø In the MBA development programs all employees will report to a mentor who will guide through the entire 2 years of rotation.
Ø Chevron also offers a summer Internship program for 1st year MBA students and they are available only in Houston. This program gives the intern exposure to a variety of Chevron organizations, current and former GSTMBA alumni and senior Chevron management.
Ø The GSTMBA actively recruits full-time candidates from top MBA programs. For individuals interested in applying, more information is available at www.chevron.com/about/careers .
Ø Chevron regularly comes to MSU and in 2006 recruited 2 full-time MBA students and offered internship to 4 1st year MBA students.