debt, and the company’s cost of borrowing can increase or decrease depending on these debt ratings. The company has outstanding public bonds issued by Chevron Corporation, Chevron Corporation Profit Sharing/Savings Plan Trust Fund and Texaco Capital Inc. All of these securities are the obligations of, or guaranteed by, Chevron Corporation and are rated AA by Standard & Poor’s Corporation and Aa1 by Moody’s Investors Service. The company’s U.S. commercial paper is rated A-1+ by Standard & Poor’s and P-l by Moody’s. All of these ratings denote high-quality, investment-grade securities.

     The company’s future debt level is dependent primarily on results of operations, the capital program and cash that

may be generated from asset dispositions. Based on its high-quality debt ratings, the company believes that it has substantial borrowing capacity to meet unanticipated cash requirements. The company also can modify capital spending plans during any extended periods of low prices for crude oil and natural gas and narrow margins for refined products and commodity chemicals to provide flexibility to continue paying the common stock dividend and maintain the company’s high-quality debt ratings.

      Common stock repurchase program In July 2010, the Board of Directors approved an ongoing share repurchase program with no set term or monetary limits. The company expects to repurchase between $500 million and $2 billion of its common shares per quarter, at prevailing prices, as permitted by securities laws and other legal requirements and subject to market conditions and other factors. During 2012, the company purchased 46.6 million common shares for $5.0 billion. From the inception of the program through 2012, the company had purchased 97.7 million shares for $10.0 billion.

   Capital and exploratory expenditures Total expenditures for 2012 were $34.2 billion, including $2.1 billion for the company’s share of equity-affiliate expenditures. In 2011 and 2010, expenditures were $29.1 billion and $21.8 billion, respectively, including the company’s share of affiliates’ expenditures of $1.7 billion and $1.4 billion, respectively.

  Of the $34.2 billion of expenditures in 2012, 89 percent, or $30.4 billion, was related to upstream activities. Approximately 89 percent and 87 percent were expended for upstream operations in 2011 and 2010. International upstream accounted for about 72 percent of the worldwide upstream investment in 2012, about 68 percent in 2011 and about 82 percent in 2010. These amounts exclude the acquisition of Atlas Energy, Inc., in 2011.

     The company estimates that 2013 capital and exploratory expenditures will be $36.7 billion, including $3.3 billion of spending by affiliates. Approximately 90 percent of the total, or $33 billion, is budgeted for exploration and production activities. Approximately $25.5 billion, or 77 percent, of this amount is for projects outside the United States. Spending in 2013 is primarily focused on major development projects in Angola, Australia, Brazil, Canada, China, Kazakhstan, Nigeria, Republic of Congo, Russia, the United Kingdom and the U.S. Gulf of Mexico. Also included is funding for