CHEVRON CORP

Comparative amounts for certain income statement categories are shown below. A discussion of variances between 2023 and 2022 can be found in the “Consolidated Statement of Income” section on pages 43 and 44 of the company’s 2023 Annual Report on Form 10-K.

Sales and other operating revenues decreased in 2024 mainly due to lower commodity prices, partially offset by higher crude oil, natural gas and refined product sales volumes.

Income from equity affiliates decreased in 2024 mainly due to lower downstream-related earnings from GS Caltex in South Korea and lower upstream-related earnings from Tengizchevroil in Kazakhstan, partially offset by an absence of certain U.S. upstream equity affiliate impairments and higher downstream-related earnings from Chevron Phillips Chemical Company LLC (CPChem). Refer to Note 15 Investments and Advances for a discussion of Chevron’s investments in affiliated companies.

Other income increased in 2024 mainly due to the absence of charges related to decommissioning obligations from previously divested oil and gas production assets in the Gulf of America, before tax gains on asset sales in Canada, a favorable swing in foreign currency effects and higher dividend income.

Crude oil and product purchases remained fairly flat in 2024 as lower crude and refined product prices were partially offset by higher crude oil and refined product volumes.

Operating, selling, general and administrative expenses increased compared to last year mainly due to higher employee-related expenses as a result of higher severance and employee benefit costs and higher downstream-related shutdown expenses.

Exploration expenses in 2024 were higher primarily due to higher geological and geophysical engineering costs.

Depreciation, depletion and amortization expenses decreased slightly in 2024 primarily due to lower impairment charges partially offset by higher production and higher rates.

Taxes other than on income increased in 2024 primarily due to higher excise and property taxes.

Interest and debt expenses increased in 2024 mainly due to higher debt balances.

Other components of net periodic benefit costs decreased in 2024 primarily due to lower pension settlement costs.

The increase in income tax expense in 2024 of $1.6 billion was primarily due to the tax impacts of the asset sales in Canada, partially offset by the decrease in total income before tax for the company of $2.1 billion. The decrease in income before taxes for the company was primarily the result of lower downstream margins, lower upstream realizations, higher operating expenses, in part due to severance charges, partially offset by the absence of charges from decommissioning obligations for previously divested assets, higher sales volumes and favorable foreign exchange impacts.

U.S. income before tax decreased from $8.6 billion in 2023 to $8.1 billion in 2024. This $0.5 billion decrease in income was primarily driven by lower downstream margins, higher operating expenses, in part due to severance charges, and lower upstream realizations, partially offset by the absence of charges related to decommissioning obligations for previously divested assets and higher sales volumes. The increase of $0.1 billion in U.S. income tax expense between year-over-year periods, from $1.8 billion in 2023 to $1.9 billion in 2024, was primarily driven by current period unfavorable tax items.

International income before tax decreased from $21.0 billion in 2023 to $19.5 billion in 2024. This $1.6 billion decrease in income was primarily driven by lower downstream margins, lower upstream realizations, higher operating expenses and lower sales volumes, partially offset by favorable foreign exchange impacts. The increase of $1.5 billion in international income tax expense between year-over-year periods, from $6.4 billion in 2023 to $7.9 billion in 2024, was primarily driven by the tax impacts of the asset sales in Canada, partially offset by the decrease in income before tax.

Refer also to the discussion of the effective income tax rate in Note 17 Taxes.