Texaco's 97th Annual Meeting Highlights Challenges and Achievements

Strategic Insights -

Texaco's 97th Annual Meeting focused on the company's outstanding performance in 1997 and the challenges it faces in building shareholder value in 1998. Chairman and Chief Executive Officer Peter I. Bijur briefed shareholders on key 1997 achievements, including record net operating income, a dividend increase, a stock split, the acquisition of Monterey Resources, and a reserve replacement of 167 percent. The company also exceeded its first-year goals for hiring and promoting women and minorities and increasing expenditures with women- and minority-owned businesses.

Key Takeaways:

  • Texaco's 1997 achievements include record net operating income, a dividend increase, a stock split, the acquisition of Monterey Resources, and a reserve replacement of 167 percent.
  • The company exceeded its first-year goals for hiring and promoting women and minorities and increasing expenditures with women- and minority-owned businesses.
  • Texaco's effort to protect shareholder value during the current period of low crude prices includes keeping a "keen eye" on cash outlays, tightening expense controls, and deferring capital expenditures.
  • The company's plan factors in the historical volatility of the energy market, but expects world oil demand to grow at about two to three percent per year, leading to a potential restoration of market balance.
  • The annual meeting approved a five-year extension of the Texaco Stockholder Rights Plan, which was designed to protect the full value of shareholders' investments.
  • Direct expenditures with women- and minority-owned business enterprises more than doubled to nearly $300 million in 1997.
  • Minorities and women accounted for 69 percent of new hires in the U.S. in 1997, and 57 percent of promotions went to minorities and women.
  • Texaco added 13 minority and women wholesalers in the marketing operations, exceeding its 1997 plan.

Statistics:

  • 1998: $119 million increase in downstream results compared to the previous year (1)
  • 1997: 167 percent reserve replacement, excluding the acquisition of Monterey Resources (1)
  • 1997: Direct expenditures with women- and minority-owned business enterprises reached nearly $300 million (1)
  • 1997: Minorities and women accounted for 69 percent of new hires in the U.S. (1)
  • 1997: 57 percent of promotions went to minorities and women (1)
  • 1997: 13 minority and women wholesalers were added in the marketing operations, exceeding the 1997 plan of 9 (1)

Sources:

  • (1) BUSINESS WIRE - April 28, 1998
  • (2) Contact: Faye Cox, 914-253-7745 (Texaco's website: http://www.texaco.com)