Chevron Corporation

Please stand by. We're about to begin. Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session, and instructions will be given at that time. If anyone should require assistance during the conference call, please press star and then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I will now turn the conference over to the General Manager of Investor Relations of Chevron Corporation, Mr. Roderick Green. Please go ahead.

Thank you, Katie. Welcome to Chevron's second quarter 2022 earnings conference call and webcast. I'm Roderick Green, GM of Investor Relations. Our CFO, Pierre Brever, and EVP of Upstream, Jay Johnson, are on the call with me today. We will refer to the slides and prepare remarks that are available on Chevron's website. Before we get started, Please be reminded that this presentation contains estimates, projections, and other forward-looking statements. Please review the cautionary statement on slide two. Now, I will turn it over to Pierre.

Thank you, Roderick, and thanks, everyone, for joining us today. We delivered another strong quarter, another quarter of strong financial results, with ROSI over 25%, the highest since 2008. Special items this quarter include asset sale gains of $200 million, and a $600 million charge to terminate early a long-term LNG regas contract at Sabine Pass. D&E for the quarter was nearly $4 billion, including inorganic spend to form our JV with Bungie. With the acquisition of REG, our total investment was $6.8 billion, more than double last year's quarter. Strong cash flow enabled us to fund this higher level of investment pay down debt for the fifth consecutive quarter, and return more than $5 billion to our shareholders through dividends and buybacks. Adjusted second quarter earnings were up more than $8 billion versus last year. Adjusted upstream earnings increased mainly on higher realizations, partially offset by lower liftings from the end of concessions in Indonesia and Thailand. Adjusted downstream earnings increased primarily on higher refining margins. Compared with last quarter, adjusted earnings were up nearly $5 billion. Adjusted upstream earnings increased primarily on higher realizations, partially offset by tax and other items, including higher withholding taxes on TCO dividends and cash repatriations. Adjusted downstream earnings increased primarily on higher refining margins and a favorable swing in timing effects. The all other segment was up due in part to a favorable change in the valuation of stock-based compensation. I'll now turn it over to Jay.