Chevron Issues Interim Update for Third Quarter 2007

Chevron Corporation (NYSE:CVX) today reported in its interim update for the third quarter 2007 that net income is expected to be significantly below the record $5.4 billion earned in the second quarter 2007.

The lower projected earnings are mainly the result of a sharp decline in refined-product margins for the downstream business and the impact of nonrecurring items. In the second quarter, nonrecurring items included a benefit of $680 million from the company’s sale of its common stock investment in Dynegy Inc. Third quarter results are expected to include an approximate $260 million gain on the sale of the company’s marketing assets in the Benelux countries. Nonrecurring net charges in the third quarter are projected to be approximately $700 million. These charges include asset impairments, environmental remediation provisions, income tax adjustments, asset retirement obligations, and severance provisions.
Basis for Comparison in Interim Update

The interim update contains certain industry and company operating data for the third quarter. The production volumes, realizations, margins and certain other items in the report are based on a portion of the quarter and are not necessarily indicative of Chevron’s quarterly results to be reported on November 2, 2007. The reader should not place undue reliance on this data.

Unless noted otherwise, all commentary is based on two months of the third quarter 2007 vs. full second quarter 2007 results.