- Triples planned total capital investment to $10 billion through
2028
- Sets growth targets for renewable fuels, hydrogen, and carbon
capture through 2030
- Reaffirms guidance of $25 billion excess cash generation over
next five years
During its Energy Transition Spotlight, Chevron Corporation
(NYSE: CVX) announced plans to invest more capital to grow lower
carbon energy businesses.
“Chevron intends to be a leader in advancing a lower carbon
future,” said Michael Wirth, Chevron’s chairman and CEO. “Our
planned actions target sectors of the economy that are harder to
abate and leverage our capabilities, assets, and customer
relationships.”
Establishes Growth Targets for Lower Carbon
Businesses
Building on its strengths, the company set the following 2030
growth targets for new energy businesses:
- Grow renewable natural gas production to 40,000 MMBtu per day
to supply a network of stations serving heavy duty transport
customers;
- Increase renewable fuels production capacity to 100,000 barrels
per day to meet growing customer demand for renewable diesel and
sustainable aviation fuel;
- Grow hydrogen production to 150,000 tonnes per year to supply
industrial, power and heavy duty transport customers; and
- Increase carbon capture and offsets to 25 million tonnes per
year by developing regional hubs in partnership with others.
To achieve this scale, the company expects to invest more than
$10 billion between now and 2028, including $2 billion to lower the
carbon intensity of Chevron’s operations. This is more than triple
the company’s previous guidance of $3 billion.
“Renewable fuels, hydrogen and carbon capture target customers
such as airlines, transport companies and industrial producers,”
said Jeff Gustavson, president of Chevron New Energies. “These
sectors of the economy are not easily electrified, and customers
are seeking lower carbon fuels and other solutions to reduce carbon
emissions.”
Reaffirms Guidance for High Return Traditional Business While
Targeting Faster Growing Lower Carbon Businesses
At a Brent oil price average of $60 per barrel, the company
reaffirmed its expectation to earn double-digit return on capital
employed by 2025 and generate $25 billion of cash flow, above its
dividend and capital spending, over the next five years. The
company also reaffirmed its 2028 upstream production greenhouse gas
intensity targets, which equate to an expected 35% reduction from
2016 levels.
“With the anticipated strong cash generation of our base
business, we expect to grow our dividend, buy back shares and
invest in lower carbon businesses,” Wirth concluded. “We believe a
strategy that combines a high return, lower carbon traditional
business with faster growing, profitable new energy ones positions
us to deliver long-term value to our shareholders.”
NOTICE
Chevron’s Energy Transition Spotlight with security analysts
will take place on Tuesday, September 14, 2021, at 7:00 a.m. PT. A
webcast of the meeting will be available in a listen-only mode to
individual investors, media, and other interested parties on
Chevron’s website at www.chevron.com under the “Investors” section.
Prepared remarks for today’s webcast, additional financial and
operating information and other complementary materials will be
available prior to the webcast at approximately 3:45 a.m. PT and
located under “Events and Presentations” in the “Investors” section
on the Chevron website.
As used in this news release, the term “Chevron” and such terms
as “the company,” “the corporation,” “our,” “we,” “us” and “its”
may refer to Chevron Corporation, one or more of its consolidated
subsidiaries, or to all of them taken as a whole. All of these
terms are used for convenience only and are not intended as a
precise description of any of the separate companies, each of which
manages its own affairs.
Please visit Chevron’s website and Investor Relations page at
www.chevron.com and www.chevron.com/investors, LinkedIn:
www.linkedin.com/company/chevron, Twitter: @Chevron, Facebook:
www.facebook.com/chevron, and Instagram: www.instagram.com/chevron,
where Chevron often discloses important information about the
company, its business, and its results of operations.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This news release contains forward-looking statements relating
to Chevron’s energy transition plans and operations that are based
on management's current expectations, estimates and projections
about the petroleum, chemicals and other energy-related industries.
Words or phrases such as “anticipates,” “expects,” “intends,”
“plans,” “targets,” “advances,” “commits,” “drives,” “aims,”
“forecasts,” “projects,” “believes,” “approaches,” “seeks,”
“schedules,” “estimates,” “positions,” “pursues,” “may,” “can,”
“could,” “should,” “will,” “budgets,” “outlook,” “trends,”
“guidance,” “focus,” “on track,” “goals,” “objectives,”
“strategies,” “opportunities,” “poised,” “potential,” “ambitions”
and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties
and other factors, many of which are beyond the company’s control
and are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. The reader should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this news release. Unless legally required,
Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices and demand for our
products, and production curtailments due to market conditions;
crude oil production quotas or other actions that might be imposed
by the Organization of Petroleum Exporting Countries and other
producing countries; technological advancements; changes to
government policies in the countries in which the company operates;
development of large carbon capture and offsets markets; public
health crises, such as pandemics (including coronavirus (COVID-19))
and epidemics, and any related government policies and actions;
changing economic, regulatory and political environments in the
various countries in which the company operates; general domestic
and international economic and political conditions; changing
refining, marketing and chemicals margins; the company’s ability to
realize anticipated cost savings, expenditure reductions and
efficiencies associated with enterprise transformation initiatives;
actions of competitors or regulators; timing of exploration
expenses; timing of crude oil liftings; the competitiveness of
alternate-energy sources or product substitutes; the results of
operations and financial condition of the company’s suppliers,
vendors, partners and equity affiliates, particularly during
extended periods of low prices for crude oil and natural gas during
the COVID-19 pandemic; the inability or failure of the company’s
joint-venture partners to fund their share of operations and
development activities; the potential failure to achieve expected
net production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats, terrorist acts, or other natural or human causes beyond
the company’s control; the potential liability for remedial actions
or assessments under existing or future environmental regulations
and litigation; significant operational, investment or product
changes undertaken or required by existing or future environmental
statutes and regulations, including international agreements and
national or regional legislation and regulatory measures to limit
or reduce greenhouse gas emissions; the potential liability
resulting from pending or future litigation; the company's ability
to achieve the anticipated benefits from the acquisition of Noble
Energy, Inc.; the company’s future acquisitions or dispositions of
assets or shares or the delay or failure of such transactions to
close based on required closing conditions; the potential for gains
and losses from asset dispositions or impairments; government
mandated sales, divestitures, recapitalizations, taxes and tax
audits, tariffs, sanctions, changes in fiscal terms or restrictions
on scope of company operations; foreign currency movements compared
with the U.S. dollar; material reductions in corporate liquidity
and access to debt markets; the receipt of required Board
authorizations to pay future dividends; the effects of changed
accounting rules under generally accepted accounting principles
promulgated by rule-setting bodies; the company’s ability to
identify and mitigate the risks and hazards inherent in operating
in the global energy industry; and the factors set forth under the
heading “Risk Factors” on pages 18 through 23 of the company's 2020
Annual Report on Form 10-K and in subsequent filings with the U.S.
Securities and Exchange Commission. Other unpredictable or unknown
factors not discussed in this news release could also have material
adverse effects on forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210914005476/en/
Braden Reddall -- +1 925-842-2209
Chevron (NYSE:CVX)
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