Chevron Reports Third Quarter Net Income of $3.6 Billion

* Hurricanes in the Gulf of Mexico estimated to have reduced quarterly results by more than $600 million
* Capital and exploratory expenditures of $7.1 billion for nine months up 25 percent from 2004 period
* Unocal acquired in third quarter for investment of $17.3 billion; operations being integrated rapidly


SAN RAMON, Calif., Oct. 28, 2005 -- Chevron Corp. today reported net income of $3.6 billion ($1.64 per share – diluted) for the third quarter 2005, compared with $3.2 billion ($1.51 per share – diluted) in the year-ago period. Earnings in 2005 included results for two months from the former Unocal operations. Net income in 2004 included a special-item gain of $0.5 billion ($0.23 per share) related to asset sales.

For the first nine months of 2005, net income was $10.0 billion ($4.68 per share – diluted), vs. $9.9 billion ($4.65 per share – diluted) in the 2004 nine-month period, which included net special-item gains of $1.0 billion ($0.48 per share).

Sales and other operating revenues in the third quarter and nine months of 2005 were $53 billion and $141 billion, respectively. Corresponding amounts in the 2004 periods were $40 billion and $109 billion. The increase between years for both comparative periods was due mainly to higher prices for crude oil, natural gas and refined products, as well as to the inclusion of revenues related to the former Unocal operations for two months in 2005.

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CAUTIONARY STATEMENTS 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,” “estimates” 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 our 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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this earnings 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 factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by Hurricanes Katrina and Rita and other severe weather in the Gulf of Mexico; crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the ability to successfully integrate the operations of Chevron and Unocal; inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential delays in the development, construction or start-up of planned projects; potential disruption or interruption of the company’s net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); potential liability resulting from pending or future litigation; the company’s ability to sell or dispose of assets or operations as expected; and the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

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