CHEVRON 2019 ANNUAL REPORT

a. Is the most recent year's revenue higher or lower than the previous year? What about the year before that? b. Did the company make a profit or experience a loss in the current year? (see consolidated net income). Was the net income higher or lower in the most recent year compared to the previous year? c. Calculate your company's profit margin (hint: it is a percentage) in the current year vs. the previous year. Which is higher as a percentage? d. Explain something that stood out to you after reviewing the Income Statement.

Consolidated Statement of Income Millions of dollars, except per-share amounts Year ended December 31 2019 2018 2017 Revenues and Other Income Sales and other operating revenues! $ 139,865 $ 158,902 $ 134,674 Income from equity affiliates 3,968 6,327 4,438 Other income 2,683 1,110 2,610 Total Revenues and Other Income 146,516 166,339 141,722 Costs and Other Deductions Purchased crude oil and products 80,113 94,578 75,765 Operating expenses 21,385 20,544 19,127 Selling, general and administrative expenses 4,143 3,838 4,110 Exploration expenses 770 1,210 864 Depreciation, depletion and amortization 29,218 19,419 19,349 Taxes other than on incomel 4,136 4,867 12,331 Interest and debt expense 798 748 307 Other components of net periodic benefit costs 417 560 648 Total Costs and Other Deductions 140,980 145,764 132,501 Income (Loss) Before Income Tax Expense 5,536 20,575 9,221 Income Tax Expense (Benefit) 2,691 5,715 (48) Net Income (Loss) 2,845 14,860 9,269 Less: Net income (loss) attributable to noncontrolling interests (79) 36 74 Net Income (Loss) Attributable to Chevron Corporation s 2,924 $ 14,824 $ 9,195 Per Share of Common Stock Net Income (Loss) Attributable to Chevron Corporation - Basic 1.55 $ 7.81 $ 4.88 - Diluted 1.54 $ 7.74 $ 4.85 2017 include excise, value-added and similar taxes of S7,189, collected on behalf of third parties. Beginning in 2018, these taxes are netted in "Taxes other than on income in accordance with Accounting Standards Update (ASU) 2014-09. Refer to Note 24, "Revenue" beginning on page 89. See accompanying Notes to the Consolidated Financial Statements. Consolidated Statement of Income Millions of dollars, except per-share amounts Year ended December 31 2019 2018 2017 Revenues and Other Income Sales and other operating revenues! $ 139,865 $ 158,902 $ 134,674 Income from equity affiliates 3,968 6,327 4,438 Other income 2,683 1,110 2,610 Total Revenues and Other Income 146,516 166,339 141,722 Costs and Other Deductions Purchased crude oil and products 80,113 94,578 75,765 Operating expenses 21,385 20,544 19,127 Selling, general and administrative expenses 4,143 3,838 4,110 Exploration expenses 770 1,210 864 Depreciation, depletion and amortization 29,218 19,419 19,349 Taxes other than on incomel 4,136 4,867 12,331 Interest and debt expense 798 748 307 Other components of net periodic benefit costs 417 560 648 Total Costs and Other Deductions 140,980 145,764 132,501 Income (Loss) Before Income Tax Expense 5,536 20,575 9,221 Income Tax Expense (Benefit) 2,691 5,715 (48) Net Income (Loss) 2,845 14,860 9,269 Less: Net income (loss) attributable to noncontrolling interests (79) 36 74 Net Income (Loss) Attributable to Chevron Corporation s 2,924 $ 14,824 $ 9,195 Per Share of Common Stock Net Income (Loss) Attributable to Chevron Corporation - Basic 1.55 $ 7.81 $ 4.88 - Diluted 1.54 $ 7.74 $ 4.85 2017 include excise, value-added and similar taxes of S7,189, collected on behalf of third parties. Beginning in 2018, these taxes are netted in "Taxes other than on income in accordance with Accounting Standards Update (ASU) 2014-09. Refer to Note 24, "Revenue" beginning on page 89. See accompanying Notes to the Consolidated Financial Statements