Announcement: Moody's comments on Chevron's acquisition of RenewableEnergy GroupGlobal Credit Research - 28 Feb 2022New York, February 28, 2022 -- Moody's Investors Service ("Moody's")commented that Chevron Corporation's (Chevron, Aa2 stable) agreement toacquire Renewable Energy Group, Inc. (REG) provides a substantialexpansion of its renewable fuels capacity and represents a significantinvestment in its lower carbon business and tangible example of itsenergy transition strategy. The $3.15 billion cash purchase price willlikely be funded by Chevron's robust free cash flow owing to very highoil and gas prices. REG has cash balances in excess of its outstandingdebt, and even on a gross debt basis the acquisition will not having ameaningful effect on Chevron's financial leverage. The transaction hasnot affected Chevron's ratings or stable outlook.On February 28, 2022, Chevron and REG agreed to an acquisition wherebyChevron will purchase all of REG's outstanding shares for $3.15 billion,or $61.50 per share. REG's cash position exceeds its debt byapproximately $400 million. Factoring in this net cash position impliesan acquisition value for the business of $2.75 billion. The acquisitionis subject to REG shareholder approval, regulatory approvals and othercustomary closing conditions and is expected to close in the second halfof 2022.This acquisition brings REG's experienced management team and itsdecade-long history as a producer of bio-based diesel, including fiveyears as a producer of renewable diesel at Geismar. REG also benefitsfrom its high process complexity that allows feedstock flexibility inmultiple biorefineries, diverse feedstock sourcing, and its ability toaccess premium demand markets, such as California and Europe, which areat the forefront of the push towards decarbonization. REG is in themidst of capital projects that will substantially expand its renewablefuels capacity at Geismar, and with that growth this acquisitionmeaningfully moves Chevron towards its goal to grow renewable fuelsproduction capacity to 100,000 barrels per day by 2030.After closing the acquisition, Chevron's renewable fuels business,Renewable Fuels - REG, will be headquartered in Ames, Iowa. In addition,REG's CEO, CJ Warner, is expected to join Chevron's Board of Directors.While Chevron expects to capture synergies amounting to between $50 and$100 million per year, Chevron clearly is focused on adding theknowledge and expertise from REG in renewable diesel to its broaderintegrated value chain for refined products and future growth inrenewable fuels.Chevron Corporation is headquartered in San Ramon, California and isamong the world's largest integrated oil and gas companies. RenewableEnergy Group, Inc. is one of North America's largest producers ofadvanced biofuels through converting natural fats, oils and greases intotransportation biofuels.This publication does not announce a credit rating action. For anycredit ratings referenced in this publication, please see the ratingstab on the issuer/entity page on www.moodys.com for the most updatedcredit rating action information and rating history.Peter SpeerSenior Vice PresidentCorporate Finance GroupMoody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007U.S.A.JOURNALISTS: 1 212 553 0376Client Service: 1 212 553 1653Steven WoodMD - Corporate FinanceCorporate Finance GroupJOURNALISTS: 1 212 553 0376Client Service: 1 212 553 1653Releasing Office:Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007U.S.A.JOURNALISTS: 1 212 553 0376Client Service: 1 212 553 1653© 2022 Moody's Corporation, Moody's Investors Service, Inc.,Moody's Analytics, Inc. and/or their licensors and affiliates(collectively, "MOODY'S"). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIRCURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDITCOMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS,SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY,"PUBLICATIONS") MAY INCLUDE SUCH CURRENT OPINIONS. MOODY'S DEFINESCREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUALFINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSSIN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY'S RATINGSYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OFCONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S CREDIT RATINGS.CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITEDTO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDITRATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND OTHER OPINIONSINCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT ORHISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVEMODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARYPUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'SCREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOTCONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'SCREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT ANDDO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULARSECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS ANDPUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANYPARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTSAND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATIONAND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWNSTUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FORPURCHASE, HOLDING, OR SALE.MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONSARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESSAND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS,ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENTDECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHERPROFESSIONAL ADVISER.ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOTLIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OROTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FORANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANYMEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONSARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM ISDEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THATCOULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.All information contained herein is obtained by MOODY'S from sourcesbelieved by it to be accurate and reliable. Because of the possibilityof human or mechanical error as well as other factors, however, allinformation contained herein is provided "AS IS" without warranty ofany kind. MOODY'S adopts all necessary measures so that the informationit uses in assigning a credit rating is of sufficient quality and fromsources MOODY'S considers to be reliable including, when appropriate,independent third-party sources. However, MOODY'S is not an auditorand cannot in every instance independently verify or validateinformation received in the rating process or in preparing itsPublications.To the extent permitted by law, MOODY'S and its directors, officers,employees, agents, representatives, licensors and suppliers disclaimliability to any person or entity for any indirect, special,consequential, or incidental losses or damages whatsoever arising fromor in connection with the information contained herein or the use of orinability to use any such information, even if MOODY'S or any of itsdirectors, officers, employees, agents, representatives, licensors orsuppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present orprospective profits or (b) any loss or damage arising where the relevantfinancial instrument is not the subject of a particular credit ratingassigned by MOODY'S.To the extent permitted by law, MOODY'S and its directors, officers,employees, agents, representatives, licensors and suppliers disclaimliability for any direct or compensatory losses or damages caused to anyperson or entity, including but not limited to by any negligence (butexcluding fraud, willful misconduct or any other type of liability that,for the avoidance of doubt, by law cannot be excluded) on the part of,or any contingency within or beyond the control of, MOODY'S or any ofits directors, officers, employees, agents, representatives, licensorsor suppliers, arising from or in connection with the informationcontained herein or the use of or inability to use any such information.NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS,COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OFANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN ORMADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.Moody's Investors Service, Inc., a wholly-owned credit rating agencysubsidiary of Moody's Corporation ("MCO"), hereby discloses thatmost issuers of debt securities (including corporate and municipalbonds, debentures, notes and commercial paper) and preferred stock ratedby Moody's Investors Service, Inc. have, prior to assignment of anycredit rating, agreed to pay to Moody's Investors Service, Inc. forcredit ratings opinions and services rendered by it fees ranging from$1,000 to approximately $5,000,000. MCO and Moody's Investors Servicealso maintain policies and procedures to address the independence ofMoody's Investors Service credit ratings and credit rating processes.Information regarding certain affiliations that may exist betweendirectors of MCO and rated entities, and between entities who holdcredit ratings from Moody's Investors Service and have also publiclyreported to the SEC an ownership interest in MCO of more than 5%, isposted annually at www.moodys.com under the heading "InvestorRelations — Corporate Governance — Director and ShareholderAffiliation Policy."Additional terms for Australia only: Any publication into Australia ofthis document is pursuant to the Australian Financial Services Licenseof MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN94 105 136 972 AFSL 383569 (as applicable). This document is intended tobe provided only to "wholesale clients" within the meaning ofsection 761G of the Corporations Act 2001. By continuing to access thisdocument from within Australia, you represent to MOODY'S that you are,or are accessing the document as a representative of, a "wholesaleclient" and that neither you nor the entity you represent willdirectly or indirectly disseminate this document or its contents to"retail clients" within the meaning of section 761G of theCorporations Act 2001. MOODY'S credit rating is an opinion as to thecreditworthiness of a debt obligation of the issuer, not on the equitysecurities of the issuer or any form of security that is available toretail investors.Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is awholly-owned credit rating agency subsidiary of Moody's Group JapanG.K., which is wholly-owned by Moody's Overseas Holdings Inc., awholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") isa wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not aNationally Recognized Statistical Rating Organization ("NRSRO").Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings.Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSROand, consequently, the rated obligation will not qualify for certaintypes of treatment under U.S. laws. MJKK and MSFJ are credit ratingagencies registered with the Japan Financial Services Agency and theirregistration numbers are FSA Commissioner (Ratings) No. 2 and 3respectively.MJKK or MSFJ (as applicable) hereby disclose that most issuers of debtsecurities (including corporate and municipal bonds, debentures, notesand commercial paper) and preferred stock rated by MJKK or MSFJ (asapplicable) have, prior to assignment of any credit rating, agreed topay to MJKK or MSFJ (as applicable) for credit ratings opinions andservices rendered by it fees ranging from JPY100,000 to approximatelyJPY550,000,000.MJKK and MSFJ also maintain policies and procedures to address Japaneseregulatory requirements.​