                                  CHEVRON

                                 10/27/93

             10/26/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Chevron Corp.   96.25   98-66   12/4   6.00   6.60 14.6  **.** **.**

1.  Chevron is rated a moderate outperformer.  Analysts are raising their 1993
and 1994 estimates of adjusted earnings (i.e., earnings from operations before
one-time charges) from $6.00 to $6.40 and from $6.60 to $6.90, respectively.
Chevron has continued to be the pacesetter in the international oil group with
net income gains reflecting a combination of cost-cutting benefits and strong
domestic refining/marketing results.

2.  Chevron's third-quarter reported earnings declined from $1.37 to $1.29 per
share, but the more meaningful adjusted earnings rose sharply from $1.16 last
year to $1.71 per share, an increase of 47% which was well market expectations.
This was the fourth consecutive quarter for Chevron of sharp earnings gains and
of total net income above $500 million on an adjusted basis and has set a new
plateau of earnings.  This was the last quarter of "easy" comparisons as the
ramp-up began with the fourth quarter of 1992.  There were no major surprises
in the general form of Chevron's third-quarter earnings but the strength in
U.S. refining/marketing results was impressive and was more than had been
estimated.  Adjusted earnings in this sector were $194 million, more than twice
the level of earnings in this year's second quarter or last year's third
quarter.  Chevron cited improvement in Eastern operations as being more
important than improvement in West Coast earnings to the earnings gain in this
sector.  Cost-cutting permeated all sectors of Chevron's business; this has
been an ongoing phenomenon for the past year.

3.  As mentioned, the third quarter will be Chevron's last "easy" quarter for
comparisons, and more muted gains should be expected from now on. Natural gas
prices are now trailing year-ago levels slightly, and oil prices are still
behind last year, although expect improvement in oil prices.  Cost-cutting
continues, although gains will be less-pronounced in the future.
Refining/marketing should continue strong, although gains from third-quarter
levels are hard to imagine given the strength of this sector.

