Chevron to Deliver Next Generation of Growth

* Upstream focusing on project execution and evaluation of significant acreage additions
* Downstream steadily progressing restructuring and asset rationalization plans

NEW YORK, NY - Chevron Corporation (NYSE: CVX) is generating record operating cash flow and advancing its strong project queue, executives said today at the company’s annual meeting with financial analysts in New York.

“Operationally and financially, 2010 was an outstanding year. We continue to deliver on our commitments,” said John Watson, Chevron’s chairman and CEO. “We improved our safety performance in 2010, once again closing the year with a world-class standing. We also exceeded our oil and gas production target and made excellent progress on our downstream restructuring.” Watson went on to add, “Over the next few years, our full attention will be on completing our major natural gas development projects in Australia, which will deliver Chevron’s next wave of significant growth.”

George Kirkland, vice chairman and executive vice president, Upstream and Gas, outlined the strong 2010 results of the upstream business, focusing on the performance improvements from existing producing assets and the profitability of recent project startups.

Looking forward, Kirkland described the portfolio that will be the growth engine for Chevron. “We continue to advance our major capital projects and we are on track to meet key project milestones.” Kirkland also discussed the extensive new acreage that was added to the portfolio in the past year. “Longer term, our early, low-cost entries into new acreage will generate opportunities for further organic growth. We believe this differentiates us from many of our competitors and will provide superior financial results.”

During the upstream discussion, Jim Blackwell, executive vice president, Technology and Services, highlighted the importance of Asia Pacific to Chevron’s growth story. “There is broad consensus on the growing role of natural gas in the world’s future energy mix. The center of growth will be Asia, and Chevron is the best positioned international oil company to supply that growing demand.”

Blackwell’s presentation highlighted a number of projects across the Asia Pacific region, culminating in a detailed review of Chevron’s key LNG projects underway in Australia – Gorgon and Wheatstone.

Mike Wirth, executive vice president, Downstream and Chemicals, focused on the progress that has been made improving returns in Chevron’s downstream business. “Last year, we announced our plans to take aggressive actions to improve the competitiveness of our downstream business. We have made significant strides in the first year of our three-year plan.” Wirth outlined cost reduction efforts and portfolio actions that are underway which will contribute to improved financial performance in the coming years.

Pat Yarrington, vice president and chief financial officer, emphasized Chevron’s strong financial capacity and discipline continue to be a competitive advantage. “The capital investments from recent years are delivering top tier cash flow and earnings per share, generating the strongest balance sheet in our peer group. This gives us the capacity to fund an unparalleled project queue and to reward shareholders with competitive dividend growth and share repurchases. ”

Presentations delivered by Watson, Kirkland, Wirth, Yarrington, and Blackwell are available at Chevron.com on the Investors page.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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 of Chevron Corporation 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,” “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. Unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements..

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