technology and facilities, real estate activities, power-related businesses and other businesses total approximately $460 million.

FINANCIAL RATIOS

     Current Ratio – current assets divided by current liabilities. The current ratio in all periods was adversely affected by the fact that Chevron’s inventories are valued on a LIFO basis. At year-end 2005, the book value of inventory was lower than replacement costs, based on average acquisition costs during the year, by approximately $4.8 billion.

     Interest Coverage Ratio – income before income tax expense, plus interest and debt expense and amortization of capitalized interest, divided by before-tax interest costs. The company’s interest coverage ratio was essentially unchanged between 2004 and 2005. The interest coverage ratio was higher in 2004 compared with 2003, primarily due to higher before-tax income and lower average debt balances.

     Debt Ratio – total debt as a percentage of total debt plus equity. Although total debt was higher at the end of 2005 than a year earlier, the debt ratio declined as a result of higher stockholders’ equity balances for retained earnings and the capital stock that was issued in connection with the Unocal acquisition. The decline in the debt ratio between 2003 and 2004 was primarily due to lower debt levels and higher retained earnings.

GUARANTEES, OFF-BALANCE-SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS, AND OTHER CONTINGENCIES

     At December 31, 2005, the company and its subsidiaries provided guarantees, either directly or indirectly, of $985 million in guarantees for notes and other contractual obligations of affiliated companies and $294 million for third parties as described by major category below. There are no material amounts being carried as liabilities for the company’s obligations under these guarantees.

     Of the $985 million in guarantees provided to affiliates, $806 million relate to borrowings for capital projects or general corporate purposes. These guarantees were undertaken to achieve lower interest rates and generally cover the construction period of the capital projects. Included in these amounts are Unocal-related guarantees of $230 million associated with a construction completion guarantee for the debt financing of Unocal’s equity interest in the Baku-Tbilisi-Ceyhan (BTC) crude oil pipeline project. Approximately 95 percent of the amounts guaranteed will expire between 2006 and 2010 with the remaining guarantees expiring by the end of 2015. Under the terms of the guarantees, the company would be required to fulfill the guarantee should an affiliate be in default of its loan terms, generally for the full amounts disclosed. There are no recourse provisions, and no assets are held as collateral for these guarantees. The remaining balance of $179 million represents obligations in connection with pricing of power-purchase agreements for certain of the company’s cogeneration affiliates. Under the terms of these guarantees, the company may be required to make payments under certain conditions if the affiliates do not perform under the agreements. There are no recourse provisions to third parties, and no assets are held as