Chevron Reports Net Income of $1.6 Billion

- Higher U.S. natural gas prices and worldwide oil and gas production

boost upstream earnings

- Improved margins add profits in refining, marketing and transportation

operations



Apr 25, 2001, 01:00 ET from Chevron Corp.

    SAN FRANCISCO, April 25 /PRNewswire/ -- Chevron Corp. (NYSE CHV) today
 reported record quarterly net income of $1.600 billion ($2.49 per
 share-diluted), an increase of 53 percent from 2000 first quarter net income
 of $1.044 billion ($1.59 per share-diluted).  Excluding net charges of
 $62 million for special items in the 2000 quarter, earnings were up
 45 percent.
 
     Earnings Summary
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings
       Exploration and Production                      $1,409         $1,018
       Refining, Marketing and Transportation             288             64
       Chemicals and Other                                (97)            24
         Total*                                        $1,600         $1,106
     Special Items                                         --            (62)
         Net Income*                                   $1,600         $1,044
 
     * Includes Foreign Currency Gains                    $71            $46
 
     "We've started off the year on a very high note," Chairman and CEO Dave
 O'Reilly said.  "Our first quarter results continue a trend that carried us to
 record earnings in 2000.  Our return on capital employed for the past
 12 months was a solid 23 percent.
     "As we have seen for more than a year," O'Reilly added, "our upstream
 business -- exploration and production -- has been the major contributor to
 our higher profits.  Upstream operating earnings of $1.4 billion in the
 quarter were up 38 percent.  Driving this improvement were higher natural gas
 prices in the United States, where our average sales realization increased
 from $2.40 to $7.57 per thousand cubic feet.  Average U.S. crude oil
 realizations, however, dropped 6 percent to about $24.50 per barrel."
 O'Reilly said that worldwide oil-equivalent production rose about 3 percent
 from the 2000 quarter, aiding in the earnings improvement.
     "While oil and gas prices may continue to fluctuate in the coming months,"
 O'Reilly remarked, "our track record of sustained higher production levels
 reflects a world-class portfolio of upstream investments that will continue to
 make positive contributions to future earnings."
     Commenting on the company's refining, marketing and transportation
 results, O'Reilly noted, "Both our domestic and international downstream
 businesses recovered from the depressed earnings of a year ago.  Margins
 strengthened this year, with higher product prices helping to offset the
 higher costs of fuel and utilities in our refining operations.  Also
 contributing to profits in the United States was higher refinery production
 -- the result of less downtime for planned and unplanned maintenance than in
 last year's quarter."
     Looking ahead, O'Reilly said, "With our excellent first quarter
 performance and ever stronger financial position, we are well positioned to
 complete the pending merger with Texaco once we obtain the necessary
 regulatory and stockholder approvals.  In this regard, we are working
 cooperatively with the Federal Trade Commission in its continuing review of
 the merger proposal.  Concurrent with the FTC review, integration teams from
 both Chevron and Texaco have developed plans and an organizational structure
 that will be used to help ensure a smooth post-merger transition."  O'Reilly
 added that the combined companies should be able to quickly capitalize upon
 each other's strengths to achieve a targeted $1.2 billion in annual synergy
 savings.
     O'Reilly summarized some of the company's noteworthy achievements since
 the beginning of the year:
 
     -- Tengiz:  In early January, Chevron closed on the purchase of an
        additional 5 percent equity stake in Tengizchevroil (TCO), increasing
        the company's ownership interest to 50 percent and adding 177 million
        barrels of proved oil-equivalent reserves.  Total crude oil production
        from the Tengiz Field in Kazakhstan averaged about 280,000 barrels per
        day in the first quarter 2001 and is expected to average
        260,000 barrels per day for the full year, reflecting the effects of
        planned shutdowns for maintenance.
     -- Australia:  Chevron will participate in a $1.6 billion expansion of the
        North West Shelf Venture liquefied natural gas (LNG) project in Western
        Australia, in which the company has a one-sixth interest.  The
        expansion project will encompass construction of a fourth LNG
        processing train, development of an 80-mile pipeline from the offshore
        gas fields to onshore facilities and the design and construction of the
        venture's ninth LNG tanker.
     -- Thailand:  Chevron announced the discovery of the Chaba Field, which is
        located in the southern portion of the Chevron-operated B8/32 offshore
        concession in the Gulf of Thailand.  Chevron has drilled three
        successful wells on Chaba.  The recent discovery further confirms the
        crude oil reserve potential in the Gulf of Thailand, which historically
        has been an area known for its reserves of natural gas.
     -- Bangladesh:  In April, Chevron and its partners were awarded the rights
        to explore an onshore tract in Bangladesh.  The tract, Block 9,
        surrounds the Bakhrabad gas field and lies adjacent to other
        gas-producing areas.  Chevron has a 30 percent interest in the block.
     -- U.S. Gulf of Mexico:  Chevron, as operator and owner of a 57 percent
        interest, completed its tenth development well at the Genesis
        floating-spar platform in deepwater U.S. Gulf of Mexico.  Total daily
        production for Genesis for 2001 is expected to average 42,000 barrels
        of oil and 54 million cubic feet of natural gas.
 
     Total revenues for the quarter were up 5 percent to $12.3 billion.  The
 increase was primarily attributable to higher realizations from the sales of
 natural gas and refined products.  Partially offsetting the effect of higher
 sales realizations was the absence of sales revenues from Chevron's
 petrochemicals business, which was contributed to the formation of the Chevron
 Phillips Chemical Company LLC in July 2000 and subsequently accounted for as
 an equity affiliate.
     Foreign currency gains increased net income by $71 million, compared with
 $46 million in the year-ago quarter.  The 2001 gains were mainly attributable
 to strengthening of the U.S. dollar against the currencies of Australia and
 Canada.
 
                           Exploration and Production
 
     U. S. Exploration and Production
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings                                  $720           $365
     Special Items                                         --             --
         Segment Income                                  $720           $365
 
     U.S. exploration and production operating earnings were $720 million,
 nearly double the 2000 first quarter.  Earnings rose on sharply higher natural
 gas prices and increased natural gas production and sales.
     The company's average natural gas realization of $7.57 per thousand cubic
 feet increased from $2.40.  Net natural gas production climbed 6 percent to
 1.6 billion cubic feet per day, mainly from higher output from the Genesis
 Field and the Viosca Knoll Carbonate Trend -- both in the Gulf of Mexico.
     The average crude oil realization declined $1.68 to $24.51 per barrel.
 Net liquids production of 299,000 barrels per day was down slightly compared
 with the same period last year.  Liquids production was reduced somewhat in
 the first quarter 2001 due to operating decisions to increase natural gas
 sales.
 
     International Exploration and Production
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings*                                 $689           $653
     Special Items                                         --             --
         Segment Income*                                 $689           $653
 
     * Includes Foreign Currency Gains                    $49            $28
 
     International exploration and production operating earnings were
 $689 million, an increase of $36 million from 2000.  The major driver of the
 earnings improvement was an increase in net oil-equivalent production of over
 4 percent.
     Net international liquids production increased 25,000 barrels per day to
 869,000 barrels per day, mainly due to higher production in Kazakhstan,
 Nigeria and Angola.  These increases were partially offset by declines in the
 United Kingdom, Canada and Indonesia.  Net natural gas production increased
 12 percent to more than 1 billion cubic feet per day, reflecting higher
 volumes in Kazakhstan and Canada.
     Foreign currency gains of $49 million in the 2001 quarter occurred mainly
 in the company's Canadian and Australian operations.
 
                     Refining, Marketing and Transportation
 
     U. S. Refining, Marketing and Transportation
 
                                                         Three Months Ended
                                                             March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings                                  $141            $55
     Special Items                                         --            (62)
         Segment Income (Losses)                         $141            $(7)
 
     U.S. refining, marketing and transportation operating earnings were
 $141 million, compared with $55 million in the first quarter 2000.  The
 $62 million special item in 2000 was for a patent litigation matter.
     Higher earnings in 2001 primarily reflected higher sales margins for
 gasoline and other refined products.  In addition, refined product sales
 volumes were up more than 6 percent.  This year's quarter also benefited from
 improved refining operations, which allowed the company to fulfill more of its
 supply commitments from refinery production rather than through higher-cost
 market purchases, as required in the first quarter 2000.
     Total refined product sales volumes were 1,286,000 barrels per day.
 Branded motor gasoline sales of 543,000 barrels per day rose nearly 6 percent.
 First quarter 2000 branded motor gasoline sales were constrained by the effect
 of late-1999 stockpiling in anticipation of possible Y2K-related supply
 disruptions.  In early 2000, distributors deferred purchases while working off
 these excess inventories.
 
              International Refining, Marketing and Transportation
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001            2000
     Operating Earnings*                                 $147             $9
     Special Items                                         --             --
         Segment Income*                                 $147             $9
 
     * Includes Foreign Currency Gains                    $33            $20
 
     International refining, marketing and transportation operating earnings
 were $147 million, up from $9 million for the first quarter of 2000.  The
 increase was attributable to higher profits from improved freight rates and
 increased tonnage in the company's international shipping operations, as well
 as a net improvement in refined product margins in the Caltex areas of
 operation.
     Chevron's share of earnings from Caltex was $48 million, compared with
 losses of $7 million in last year's first quarter.  Included were foreign
 currency gains of $30 million in 2001 and $18 million in 2000.  Operations in
 Australia and Korea accounted for most of the 2001 foreign currency gains.
     Sales volumes increased to 804,000 barrels per day, compared with
 770,000 barrels per day in last year's quarter.  The increase was mainly
 attributable to sales by the company's marine fuels and lubricants affiliate.
 
                                   Chemicals
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                  2001           2000
     Operating (Losses) Earnings*                        $(36)           $68
     Special Items                                         --             --
         Segment (Losses) Income*                        $(36)           $68
 
     * Includes Foreign Currency Losses                   $(4)           $--
 
     Chemicals operating losses were $36 million, compared with earnings of
 $68 million in the 2000 quarter.  Higher raw material and energy costs were
 not fully recovered in prices of commodity chemicals.  Chemical margins remain
 weak, and no significant near-term improvement is expected.
 
                                   All Other
 
                                                        Three Months Ended
                                                             March 31,
     Millions of Dollars                                 2001           2000
     Net Charges, Excluding Special Items*               $(61)          $(44)
     Special Items                                         --             --
         Net Charges*                                    $(61)          $(44)
 
     * Includes Foreign Currency Losses                   $(7)           $(2)
 
     All Other consists of the company's ownership interest in Dynegy Inc.,
 coal mining operations, worldwide cash management and debt financing
 activities, corporate administrative costs, insurance operations, real estate
 activities and certain e-businesses.  Net charges were $61 million, compared
 with $44 million last year.
     Chevron's share of Dynegy's operating earnings increased by $15 million to
 $34 million on the strength of Dynegy's core energy marketing and trading
 business.  Coal mining operations earned $6 million, compared with $3 million
 in the 2000 quarter.  Coal tonnage and sales prices were both higher in this
 year's first quarter.
     Net charges from other activities were $101 million, compared with
 $66 million in 2000.  The favorable effects of lower interest expense and
 higher interest income were more than offset by increases to other corporate
 charges, including expenses associated with the pending merger with Texaco.
 
                      Capital and Exploratory Expenditures
 
     Capital and exploratory expenditures, including the company's share of
 affiliates' expenditures, were $1.736 billion, compared with $1.195 billion in
 the first quarter 2000.  Expenditures for international exploration and
 production projects were $1.056 billion, or 61 percent of the total
 expenditures -- reflecting the company's continued emphasis on increasing
 international oil and gas production.  In the first quarter 2001, expenditures
 included the acquisition of an additional 5 percent interest in the
 Tengizchevroil affiliate and increased spending in the Gulf of Mexico.  First
 quarter 2000 expenditures included an additional investment of $200 million in
 Dynegy Inc.
 
                                     NOTICE
 
     Chevron's first quarter 2001 earnings conference call will take place on
 Wednesday, April 25, 2001, at 11:00 a.m. PDT.  The conference call will be
 available in a listen-only mode to individual investors, media and other
 interested parties on Chevron's Investor Center Web site at www.chevron.com.
     Additional financial and operating information is contained in the
 Investor Relations Supplement that is available on the Investor Center Web
 site under "Quarterly Results."
     Chevron will post selected second quarter interim company and industry
 performance data on its Web site on Tuesday, June 26, 2001, at 2:00 p.m. PDT.
 Interested parties may view this interim data at www.chevron.com under the
 Investor Center heading.
 
  Cautionary Statement Relevant to Forward-Looking Information for the Purpose
 of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of
                                      1995
 
     Some of the items discussed in this earnings release are forward-looking
 statements relating to Chevron's operations that are based on management's
 current expectations, estimates and projections about the petroleum, chemical
 and other industries, in which the company operates.  Words such as "expects,"
 "plans," "projects," "believes," "estimates," and similar expressions are used
 to identify such forward-looking statements.  The statements included in this
 release are not guarantees of future performance and involve certain risks,
 uncertainties and assumptions that are difficult to predict.  These include
 potential changes in crude oil, natural gas and other commodity prices;
 potential delays or other changes in exploration, development and repair
 schedules; and consummation of the pending merger with Texaco.  Actual
 outcomes and results could differ materially from what is expressed or
 forecasted in such forward-looking statements.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
                (Millions of Dollars, Except Per-Share Amounts)
 
     CONSOLIDATED STATEMENT OF INCOME
           (unaudited)
                                                 Three Months Ending March 31,
     REVENUES AND OTHER INCOME:                         2001           2000
       Sales and Other Operating Revenues (A)         $11,965        $11,385
       Income From Equity Affiliates                      220            196
       Other Income                                       113            146
                                                       12,298         11,727
     COSTS AND OTHER DEDUCTIONS:
       Purchased Crude Oil and Products                 5,961          6,249
       Operating Expenses                               1,183          1,238
       Selling, General and Administrative Expenses       441            377
       Exploration Expenses                               107             96
       Depreciation, Depletion and Amortization           682            651
       Taxes Other Than on Income (A)                   1,189          1,138
       Interest and Debt Expense                           87            129
                                                        9,650          9,878
     Income Before Income Tax Expense                   2,648          1,849
       Income Tax Expense                               1,048            805
     NET INCOME                                        $1,600         $1,044
 
 
     PER-SHARE AMOUNTS
       Earnings - Basic                                 $2.49          $1.59
       Earnings - Diluted                               $2.49          $1.59
       Dividends                                         $.65           $.65
 
     Average Common Shares Outstanding (000's)
                - Basic                               642,025        656,132
                - Diluted                             643,143        658,124
 
     NET INCOME BY MAJOR OPERATING AREA
              (unaudited)                        Three Months Ending March 31,
                                                         2001           2000
     Exploration and Production
       United States                                     $720           $365
       International                                      689            653
         Total Exploration and Production               1,409          1,018
     Refining, Marketing and Transportation
       United States                                      141             (7)
       International                                      147              9
         Total Refining, Marketing and Transportation     288              2
     Chemicals                                            (36)            68
     All Other (B)                                        (61)           (44)
     NET INCOME                                       $ 1,600         $1,044
 
     (A)  Includes consumer excise taxes;
          2000 amounts restated.                       $1,001           $942
     (B)  Includes coal operations, Dynegy Inc. equity earnings, interest
          expense, interest income on cash and marketable securities,
          corporate center costs, real estate and insurance activities and
          certain e-businesses.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
                             (Millions of Dollars)
 
     SPECIAL ITEMS BY MAJOR OPERATING AREA       Three Months Ending March 31,
           (unaudited)                                   2001            2000
 
     U. S. Refining, Marketing and Transportation         $--           $(62)
       Total Special Items                                $--           $(62)
 
     SUMMARY OF SPECIAL ITEMS                    Three Months Ending March 31,
           (unaudited)                                   2001            2000
 
     Litigation                                           $--           $(62)
       Total Special Items                                $--           $(62)
 
     FOREIGN CURRENCY GAINS                               $71            $46
 
     EARNINGS BY MAJOR OPERATING AREA
        EXCLUDING SPECIAL ITEMS
             (unaudited)                         Three Months Ending March 31,
                                                         2001           2000
     Exploration and Production
       United States                                    $720           $ 365
       International                                     689             653
         Total Exploration and Production              1,409           1,018
     Refining, Marketing and Transportation
       United States                                     141              55
       International                                     147               9
         Total Refining, Marketing and Transportation    288              64
     Chemicals                                           (36)             68
     All Other *                                         (61)            (44)
         Earnings, Excluding Special Items             1,600           1,106
 
     Special Items                                        --             (62)
         Net Income                                   $1,600          $1,044
 
     *  Includes coal operations, Dynegy Inc. equity earnings, interest
        expense, interest income on cash and marketable securities, corporate
        center costs, real estate and insurance activities and certain
        e-businesses.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
 
     CAPITAL AND EXPLORATORY EXPENDITURES (A)    Three Months Ending March 31,
          (millions of dollars)                          2001           2000
     United States
       Exploration and Production                        $369           $210
       Refining, Marketing and Transportation              94             81
       Chemicals                                           12             23
       Other                                               86            301
         Total United States                              561            615
 
     International
       Exploration and Production                       1,056            456
       Refining, Marketing and Transportation             115            108
       Chemicals                                            4             16
         Total International                            1,175            580
         Worldwide                                     $1,736         $1,195
 
     OPERATING STATISTICS (A)
     NET LIQUIDS PRODUCTION (MB/D):
       United States                                      299            307
       International (B)                                  869            844
         Worldwide                                      1,168          1,151
 
     NET NATURAL GAS PRODUCTION (MMCF/D):
       United States                                    1,605          1,515
       International                                    1,027            915
         Worldwide                                      2,632          2,430
 
     SALES OF NATURAL GAS (MMCF/D):
       United States                                    3,640          3,331
       International                                    1,720          2,050
         Worldwide                                      5,360          5,381
 
     SALES OF NATURAL GAS LIQUIDS (MB/D):
       United States                                      187            113
       International                                       64             70
         Worldwide                                        251            183
 
     SALES OF REFINED PRODUCTS (MB/D):
       United States                                    1,286          1,214
       International                                      804            770
         Worldwide                                      2,090          1,984
 
     REFINERY INPUT (MB/D):
       United States                                      894            816
       International                                      414            399
         Worldwide                                      1,308          1,215
 
     (A) Includes interest in affiliates.
     (B) Excludes volumes produced for
         operating service agreements.                    111            112
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X21303018
 
 

SOURCE Chevron Corp.
    SAN FRANCISCO, April 25 /PRNewswire/ -- Chevron Corp. (NYSE CHV) today
 reported record quarterly net income of $1.600 billion ($2.49 per
 share-diluted), an increase of 53 percent from 2000 first quarter net income
 of $1.044 billion ($1.59 per share-diluted).  Excluding net charges of
 $62 million for special items in the 2000 quarter, earnings were up
 45 percent.
 
     Earnings Summary
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings
       Exploration and Production                      $1,409         $1,018
       Refining, Marketing and Transportation             288             64
       Chemicals and Other                                (97)            24
         Total*                                        $1,600         $1,106
     Special Items                                         --            (62)
         Net Income*                                   $1,600         $1,044
 
     * Includes Foreign Currency Gains                    $71            $46
 
     "We've started off the year on a very high note," Chairman and CEO Dave
 O'Reilly said.  "Our first quarter results continue a trend that carried us to
 record earnings in 2000.  Our return on capital employed for the past
 12 months was a solid 23 percent.
     "As we have seen for more than a year," O'Reilly added, "our upstream
 business -- exploration and production -- has been the major contributor to
 our higher profits.  Upstream operating earnings of $1.4 billion in the
 quarter were up 38 percent.  Driving this improvement were higher natural gas
 prices in the United States, where our average sales realization increased
 from $2.40 to $7.57 per thousand cubic feet.  Average U.S. crude oil
 realizations, however, dropped 6 percent to about $24.50 per barrel."
 O'Reilly said that worldwide oil-equivalent production rose about 3 percent
 from the 2000 quarter, aiding in the earnings improvement.
     "While oil and gas prices may continue to fluctuate in the coming months,"
 O'Reilly remarked, "our track record of sustained higher production levels
 reflects a world-class portfolio of upstream investments that will continue to
 make positive contributions to future earnings."
     Commenting on the company's refining, marketing and transportation
 results, O'Reilly noted, "Both our domestic and international downstream
 businesses recovered from the depressed earnings of a year ago.  Margins
 strengthened this year, with higher product prices helping to offset the
 higher costs of fuel and utilities in our refining operations.  Also
 contributing to profits in the United States was higher refinery production
 -- the result of less downtime for planned and unplanned maintenance than in
 last year's quarter."
     Looking ahead, O'Reilly said, "With our excellent first quarter
 performance and ever stronger financial position, we are well positioned to
 complete the pending merger with Texaco once we obtain the necessary
 regulatory and stockholder approvals.  In this regard, we are working
 cooperatively with the Federal Trade Commission in its continuing review of
 the merger proposal.  Concurrent with the FTC review, integration teams from
 both Chevron and Texaco have developed plans and an organizational structure
 that will be used to help ensure a smooth post-merger transition."  O'Reilly
 added that the combined companies should be able to quickly capitalize upon
 each other's strengths to achieve a targeted $1.2 billion in annual synergy
 savings.
     O'Reilly summarized some of the company's noteworthy achievements since
 the beginning of the year:
 
     -- Tengiz:  In early January, Chevron closed on the purchase of an
        additional 5 percent equity stake in Tengizchevroil (TCO), increasing
        the company's ownership interest to 50 percent and adding 177 million
        barrels of proved oil-equivalent reserves.  Total crude oil production
        from the Tengiz Field in Kazakhstan averaged about 280,000 barrels per
        day in the first quarter 2001 and is expected to average
        260,000 barrels per day for the full year, reflecting the effects of
        planned shutdowns for maintenance.
     -- Australia:  Chevron will participate in a $1.6 billion expansion of the
        North West Shelf Venture liquefied natural gas (LNG) project in Western
        Australia, in which the company has a one-sixth interest.  The
        expansion project will encompass construction of a fourth LNG
        processing train, development of an 80-mile pipeline from the offshore
        gas fields to onshore facilities and the design and construction of the
        venture's ninth LNG tanker.
     -- Thailand:  Chevron announced the discovery of the Chaba Field, which is
        located in the southern portion of the Chevron-operated B8/32 offshore
        concession in the Gulf of Thailand.  Chevron has drilled three
        successful wells on Chaba.  The recent discovery further confirms the
        crude oil reserve potential in the Gulf of Thailand, which historically
        has been an area known for its reserves of natural gas.
     -- Bangladesh:  In April, Chevron and its partners were awarded the rights
        to explore an onshore tract in Bangladesh.  The tract, Block 9,
        surrounds the Bakhrabad gas field and lies adjacent to other
        gas-producing areas.  Chevron has a 30 percent interest in the block.
     -- U.S. Gulf of Mexico:  Chevron, as operator and owner of a 57 percent
        interest, completed its tenth development well at the Genesis
        floating-spar platform in deepwater U.S. Gulf of Mexico.  Total daily
        production for Genesis for 2001 is expected to average 42,000 barrels
        of oil and 54 million cubic feet of natural gas.
 
     Total revenues for the quarter were up 5 percent to $12.3 billion.  The
 increase was primarily attributable to higher realizations from the sales of
 natural gas and refined products.  Partially offsetting the effect of higher
 sales realizations was the absence of sales revenues from Chevron's
 petrochemicals business, which was contributed to the formation of the Chevron
 Phillips Chemical Company LLC in July 2000 and subsequently accounted for as
 an equity affiliate.
     Foreign currency gains increased net income by $71 million, compared with
 $46 million in the year-ago quarter.  The 2001 gains were mainly attributable
 to strengthening of the U.S. dollar against the currencies of Australia and
 Canada.
 
                           Exploration and Production
 
     U. S. Exploration and Production
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings                                  $720           $365
     Special Items                                         --             --
         Segment Income                                  $720           $365
 
     U.S. exploration and production operating earnings were $720 million,
 nearly double the 2000 first quarter.  Earnings rose on sharply higher natural
 gas prices and increased natural gas production and sales.
     The company's average natural gas realization of $7.57 per thousand cubic
 feet increased from $2.40.  Net natural gas production climbed 6 percent to
 1.6 billion cubic feet per day, mainly from higher output from the Genesis
 Field and the Viosca Knoll Carbonate Trend -- both in the Gulf of Mexico.
     The average crude oil realization declined $1.68 to $24.51 per barrel.
 Net liquids production of 299,000 barrels per day was down slightly compared
 with the same period last year.  Liquids production was reduced somewhat in
 the first quarter 2001 due to operating decisions to increase natural gas
 sales.
 
     International Exploration and Production
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings*                                 $689           $653
     Special Items                                         --             --
         Segment Income*                                 $689           $653
 
     * Includes Foreign Currency Gains                    $49            $28
 
     International exploration and production operating earnings were
 $689 million, an increase of $36 million from 2000.  The major driver of the
 earnings improvement was an increase in net oil-equivalent production of over
 4 percent.
     Net international liquids production increased 25,000 barrels per day to
 869,000 barrels per day, mainly due to higher production in Kazakhstan,
 Nigeria and Angola.  These increases were partially offset by declines in the
 United Kingdom, Canada and Indonesia.  Net natural gas production increased
 12 percent to more than 1 billion cubic feet per day, reflecting higher
 volumes in Kazakhstan and Canada.
     Foreign currency gains of $49 million in the 2001 quarter occurred mainly
 in the company's Canadian and Australian operations.
 
                     Refining, Marketing and Transportation
 
     U. S. Refining, Marketing and Transportation
 
                                                         Three Months Ended
                                                             March 31,
     Millions of Dollars                                 2001           2000
     Operating Earnings                                  $141            $55
     Special Items                                         --            (62)
         Segment Income (Losses)                         $141            $(7)
 
     U.S. refining, marketing and transportation operating earnings were
 $141 million, compared with $55 million in the first quarter 2000.  The
 $62 million special item in 2000 was for a patent litigation matter.
     Higher earnings in 2001 primarily reflected higher sales margins for
 gasoline and other refined products.  In addition, refined product sales
 volumes were up more than 6 percent.  This year's quarter also benefited from
 improved refining operations, which allowed the company to fulfill more of its
 supply commitments from refinery production rather than through higher-cost
 market purchases, as required in the first quarter 2000.
     Total refined product sales volumes were 1,286,000 barrels per day.
 Branded motor gasoline sales of 543,000 barrels per day rose nearly 6 percent.
 First quarter 2000 branded motor gasoline sales were constrained by the effect
 of late-1999 stockpiling in anticipation of possible Y2K-related supply
 disruptions.  In early 2000, distributors deferred purchases while working off
 these excess inventories.
 
              International Refining, Marketing and Transportation
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                 2001            2000
     Operating Earnings*                                 $147             $9
     Special Items                                         --             --
         Segment Income*                                 $147             $9
 
     * Includes Foreign Currency Gains                    $33            $20
 
     International refining, marketing and transportation operating earnings
 were $147 million, up from $9 million for the first quarter of 2000.  The
 increase was attributable to higher profits from improved freight rates and
 increased tonnage in the company's international shipping operations, as well
 as a net improvement in refined product margins in the Caltex areas of
 operation.
     Chevron's share of earnings from Caltex was $48 million, compared with
 losses of $7 million in last year's first quarter.  Included were foreign
 currency gains of $30 million in 2001 and $18 million in 2000.  Operations in
 Australia and Korea accounted for most of the 2001 foreign currency gains.
     Sales volumes increased to 804,000 barrels per day, compared with
 770,000 barrels per day in last year's quarter.  The increase was mainly
 attributable to sales by the company's marine fuels and lubricants affiliate.
 
                                   Chemicals
 
                                                         Three Months Ended
                                                              March 31,
     Millions of Dollars                                  2001           2000
     Operating (Losses) Earnings*                        $(36)           $68
     Special Items                                         --             --
         Segment (Losses) Income*                        $(36)           $68
 
     * Includes Foreign Currency Losses                   $(4)           $--
 
     Chemicals operating losses were $36 million, compared with earnings of
 $68 million in the 2000 quarter.  Higher raw material and energy costs were
 not fully recovered in prices of commodity chemicals.  Chemical margins remain
 weak, and no significant near-term improvement is expected.
 
                                   All Other
 
                                                        Three Months Ended
                                                             March 31,
     Millions of Dollars                                 2001           2000
     Net Charges, Excluding Special Items*               $(61)          $(44)
     Special Items                                         --             --
         Net Charges*                                    $(61)          $(44)
 
     * Includes Foreign Currency Losses                   $(7)           $(2)
 
     All Other consists of the company's ownership interest in Dynegy Inc.,
 coal mining operations, worldwide cash management and debt financing
 activities, corporate administrative costs, insurance operations, real estate
 activities and certain e-businesses.  Net charges were $61 million, compared
 with $44 million last year.
     Chevron's share of Dynegy's operating earnings increased by $15 million to
 $34 million on the strength of Dynegy's core energy marketing and trading
 business.  Coal mining operations earned $6 million, compared with $3 million
 in the 2000 quarter.  Coal tonnage and sales prices were both higher in this
 year's first quarter.
     Net charges from other activities were $101 million, compared with
 $66 million in 2000.  The favorable effects of lower interest expense and
 higher interest income were more than offset by increases to other corporate
 charges, including expenses associated with the pending merger with Texaco.
 
                      Capital and Exploratory Expenditures
 
     Capital and exploratory expenditures, including the company's share of
 affiliates' expenditures, were $1.736 billion, compared with $1.195 billion in
 the first quarter 2000.  Expenditures for international exploration and
 production projects were $1.056 billion, or 61 percent of the total
 expenditures -- reflecting the company's continued emphasis on increasing
 international oil and gas production.  In the first quarter 2001, expenditures
 included the acquisition of an additional 5 percent interest in the
 Tengizchevroil affiliate and increased spending in the Gulf of Mexico.  First
 quarter 2000 expenditures included an additional investment of $200 million in
 Dynegy Inc.
 
                                     NOTICE
 
     Chevron's first quarter 2001 earnings conference call will take place on
 Wednesday, April 25, 2001, at 11:00 a.m. PDT.  The conference call will be
 available in a listen-only mode to individual investors, media and other
 interested parties on Chevron's Investor Center Web site at www.chevron.com.
     Additional financial and operating information is contained in the
 Investor Relations Supplement that is available on the Investor Center Web
 site under "Quarterly Results."
     Chevron will post selected second quarter interim company and industry
 performance data on its Web site on Tuesday, June 26, 2001, at 2:00 p.m. PDT.
 Interested parties may view this interim data at www.chevron.com under the
 Investor Center heading.
 
  Cautionary Statement Relevant to Forward-Looking Information for the Purpose
 of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of
                                      1995
 
     Some of the items discussed in this earnings release are forward-looking
 statements relating to Chevron's operations that are based on management's
 current expectations, estimates and projections about the petroleum, chemical
 and other industries, in which the company operates.  Words such as "expects,"
 "plans," "projects," "believes," "estimates," and similar expressions are used
 to identify such forward-looking statements.  The statements included in this
 release are not guarantees of future performance and involve certain risks,
 uncertainties and assumptions that are difficult to predict.  These include
 potential changes in crude oil, natural gas and other commodity prices;
 potential delays or other changes in exploration, development and repair
 schedules; and consummation of the pending merger with Texaco.  Actual
 outcomes and results could differ materially from what is expressed or
 forecasted in such forward-looking statements.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
                (Millions of Dollars, Except Per-Share Amounts)
 
     CONSOLIDATED STATEMENT OF INCOME
           (unaudited)
                                                 Three Months Ending March 31,
     REVENUES AND OTHER INCOME:                         2001           2000
       Sales and Other Operating Revenues (A)         $11,965        $11,385
       Income From Equity Affiliates                      220            196
       Other Income                                       113            146
                                                       12,298         11,727
     COSTS AND OTHER DEDUCTIONS:
       Purchased Crude Oil and Products                 5,961          6,249
       Operating Expenses                               1,183          1,238
       Selling, General and Administrative Expenses       441            377
       Exploration Expenses                               107             96
       Depreciation, Depletion and Amortization           682            651
       Taxes Other Than on Income (A)                   1,189          1,138
       Interest and Debt Expense                           87            129
                                                        9,650          9,878
     Income Before Income Tax Expense                   2,648          1,849
       Income Tax Expense                               1,048            805
     NET INCOME                                        $1,600         $1,044
 
 
     PER-SHARE AMOUNTS
       Earnings - Basic                                 $2.49          $1.59
       Earnings - Diluted                               $2.49          $1.59
       Dividends                                         $.65           $.65
 
     Average Common Shares Outstanding (000's)
                - Basic                               642,025        656,132
                - Diluted                             643,143        658,124
 
     NET INCOME BY MAJOR OPERATING AREA
              (unaudited)                        Three Months Ending March 31,
                                                         2001           2000
     Exploration and Production
       United States                                     $720           $365
       International                                      689            653
         Total Exploration and Production               1,409          1,018
     Refining, Marketing and Transportation
       United States                                      141             (7)
       International                                      147              9
         Total Refining, Marketing and Transportation     288              2
     Chemicals                                            (36)            68
     All Other (B)                                        (61)           (44)
     NET INCOME                                       $ 1,600         $1,044
 
     (A)  Includes consumer excise taxes;
          2000 amounts restated.                       $1,001           $942
     (B)  Includes coal operations, Dynegy Inc. equity earnings, interest
          expense, interest income on cash and marketable securities,
          corporate center costs, real estate and insurance activities and
          certain e-businesses.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
                             (Millions of Dollars)
 
     SPECIAL ITEMS BY MAJOR OPERATING AREA       Three Months Ending March 31,
           (unaudited)                                   2001            2000
 
     U. S. Refining, Marketing and Transportation         $--           $(62)
       Total Special Items                                $--           $(62)
 
     SUMMARY OF SPECIAL ITEMS                    Three Months Ending March 31,
           (unaudited)                                   2001            2000
 
     Litigation                                           $--           $(62)
       Total Special Items                                $--           $(62)
 
     FOREIGN CURRENCY GAINS                               $71            $46
 
     EARNINGS BY MAJOR OPERATING AREA
        EXCLUDING SPECIAL ITEMS
             (unaudited)                         Three Months Ending March 31,
                                                         2001           2000
     Exploration and Production
       United States                                    $720           $ 365
       International                                     689             653
         Total Exploration and Production              1,409           1,018
     Refining, Marketing and Transportation
       United States                                     141              55
       International                                     147               9
         Total Refining, Marketing and Transportation    288              64
     Chemicals                                           (36)             68
     All Other *                                         (61)            (44)
         Earnings, Excluding Special Items             1,600           1,106
 
     Special Items                                        --             (62)
         Net Income                                   $1,600          $1,044
 
     *  Includes coal operations, Dynegy Inc. equity earnings, interest
        expense, interest income on cash and marketable securities, corporate
        center costs, real estate and insurance activities and certain
        e-businesses.
 
 
                     CHEVRON CORPORATION - FINANCIAL REVIEW
 
     CAPITAL AND EXPLORATORY EXPENDITURES (A)    Three Months Ending March 31,
          (millions of dollars)                          2001           2000
     United States
       Exploration and Production                        $369           $210
       Refining, Marketing and Transportation              94             81
       Chemicals                                           12             23
       Other                                               86            301
         Total United States                              561            615
 
     International
       Exploration and Production                       1,056            456
       Refining, Marketing and Transportation             115            108
       Chemicals                                            4             16
         Total International                            1,175            580
         Worldwide                                     $1,736         $1,195
 
     OPERATING STATISTICS (A)
     NET LIQUIDS PRODUCTION (MB/D):
       United States                                      299            307
       International (B)                                  869            844
         Worldwide                                      1,168          1,151
 
     NET NATURAL GAS PRODUCTION (MMCF/D):
       United States                                    1,605          1,515
       International                                    1,027            915
         Worldwide                                      2,632          2,430
 
     SALES OF NATURAL GAS (MMCF/D):
       United States                                    3,640          3,331
       International                                    1,720          2,050
         Worldwide                                      5,360          5,381
 
     SALES OF NATURAL GAS LIQUIDS (MB/D):
       United States                                      187            113
       International                                       64             70
         Worldwide                                        251            183
 
     SALES OF REFINED PRODUCTS (MB/D):
       United States                                    1,286          1,214
       International                                      804            770
         Worldwide                                      2,090          1,984
 
     REFINERY INPUT (MB/D):
       United States                                      894            816
       International                                      414            399
         Worldwide                                      1,308          1,215
 
     (A) Includes interest in affiliates.
     (B) Excludes volumes produced for
         operating service agreements.                    111            112
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X21303018
 
 SOURCE  Chevron Corp.