Chevron Earnings Call Insights: Unconventional Rigs and Cash Pile

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Chevron Corp (NYSE:CVX) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Unconventional Rigs

Evan Calio – Morgan Stanley: John, I believe you guys hold over 950,000 acres in the Delaware Basin inclusive of last year’s asset acquisition and larger position in the Permian in total marking Chevron one of the larger acreage holders yet running fewer rigs than some of the peers. So, I mean, how many unconventional rigs are you running and maybe can you discuss planned activity ramp in ’13 and whether or not there’s any internal constraints for you, whether you’re limited at all on the people side to accelerating this (NYSE:NAV) realization? I have a second question please.

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John S. Watson – Chairman and CEO: Well, we are ramping up rig activity. In fact, we’re just looking at some of the material we are going to show you for the SAM meeting that’s coming up and we will give you actually some pretty good rig count data and what you will see is, we are ramping up rapidly in the Delaware Basin. As you would expect, we’ve got really over 20 in the Permian region that are running right now. We will give you more specifics about the ramp up is headed there. Activity in a fewer number of rigs are running up in the Marcellus region, but that too has been gradually ramping up as we – as you know, we are still drilling gas prospects there as we have the carry that we are working through. I will be happy to give you a lot more detail on that with precision on the number of rigs. We are seeing volume growth in both of these areas that are a part of the plan going forward. You had a follow-up?

Evan Calio – Morgan Stanley: Yeah. I just was curious within that if you saw any internal constraints, meaning you’re able to organically to ramp those volumes?

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