Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2006 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-368-2 Chevron Corporation (Exact name of registrant as specified in its charter) Delaware 94-0890210 6001 Bollinger Canyon Road, San Ramon, California 94583-2324 (State or other jurisdiction of (I.R.S. Employer (Address of principal executive offices) (Zip Code) incorporation or organization) Identification Number) Registrant’s telephone number, including area code (925) 842-1000 Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange Title of Each Class on Which Registered Common stock, par value $.75 per share New York Stock Exchange, Inc. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No o Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No o Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Act. (Check one): Large accelerated filer Accelerated filer o Non-accelerated filer o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No Aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter — $136,407,118,275 (As of June 30, 2006) Number of Shares of Common Stock outstanding as of February 23, 2007 — 2,157,780,998 DOCUMENTS INCORPORATED BY REFERENCE (To The Extent Indicated Herein) Notice of the 2007 Annual Meeting and 2007 Proxy Statement, to be filed pursuant to Rule 14a-6(b) under the Securities Exchange Act of 1934, in connection with the company’s 2007 Annual Meeting of Stockholders (in Part III) TABLE OF CONTENTS Item Page No. PART I 1. Business 3 (a) General Development of Business 3 (b) Description of Business and Properties 4 Capital and Exploratory Expenditures 4 Upstream — Exploration and Production 4 Net Production of Crude Oil and Natural Gas Liquids and Natural Gas 5 Average Sales Prices and Production Costs per Unit of Production 6 Gross and Net Productive Wells 6 Reserves 6 Acreage 7 Contract Obligations 7 Development Activities 8 Exploration Activities 9 Review of Ongoing Exploration and Production Activities in Key Areas 9 Sales of Natural Gas and Natural Gas Liquids 24 Downstream — Refining, Marketing and Transportation 24 Refining Operations 24 Gas-to-Liquids 25 Marketing Operations 25 Transportation Operations 27 Chemicals 28 Other Businesses 29 Mining 29 Global Power Generation 29 Chevron Energy Solutions 29 Research and Technology 30 Environmental Protection 30 Web Site Access to SEC Reports 30 1A. Risk Factors 31 1B. Unresolved Staff Comments 32 2. Properties 32 3. Legal Proceedings 32 4. Submission of Matters to a Vote of Security Holders 32 Executive Officers of the Registrant at February 28, 2007 33 PART II 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 6. Selected Financial Data 35 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 35 7A. Quantitative and Qualitative Disclosures About Market Risk 35 8. Financial Statements and Supplementary Data 35 9. Changes in and Disagreements With Auditors on Accounting and Financial Disclosure 36 9A. Controls and Procedures 36 (a) Evaluation of Disclosure Controls and Procedures 36 (b) Management’s Report on Internal Control Over Financial Reporting 36 (c) Changes in Internal Control Over Financial Reporting 36 9B. Other Information 36 PART III 10. Directors, Executive Officers and Corporate Governance 37 11. Executive Compensation 37 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 37 13. Certain Relationships and Related Transactions, and Director Independence 37 14. Principal Accounting Fees and Services 37 PART IV 15. Exhibits, Financial Statement Schedules 38 Schedule II — Valuation and Qualifying Accounts 39 Signatures 40 EXHIBIT 12.1 EXHIBIT 21.1 EXHIBIT 23.1 EXHIBIT 24.1 EXHIBIT 24.2 EXHIBIT 24.3 EXHIBIT 24.4 EXHIBIT 24.5 EXHIBIT 24.6 EXHIBIT 24.7 EXHIBIT 24.8 EXHIBIT 24.9 EXHIBIT 24.10 EXHIBIT 24.11 EXHIBIT 31.1 EXHIBIT 31.2 EXHIBIT 32.1 EXHIBIT 32.2 EXHIBIT 99.1 1 Table of Contents CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This Annual Report on Form 10-K of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company’s joint- venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest or severe weather; the potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or restrictions on scope of company operations; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” in this report. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements. 2 Table of Contents PART I Item 1. Business (a) General Development of Business Summary Description of Chevron Chevron Corporation,1 a Delaware corporation, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and foreign subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations of coal and other minerals, power generation and energy services. The company conducts business activities in the United States and approximately 180 other countries. Exploration and production (upstream) operations consist of exploring for, developing and producing crude oil and