- Raises share buyback guidance to $10 to $20 billion per
year
- Expects free cash flow annual growth greater than 10% at $60
Brent
- Updates progress toward targets for lower carbon intensity
and new energies growth
At its annual investor meeting today, Chevron Corporation (NYSE:
CVX) reported on its progress to leverage its strengths to safely
deliver lower carbon energy to a growing world.
“Chevron intends to be a leader in both traditional and new
energy businesses,” said Mike Wirth, chairman and CEO. “We’re
growing energy supply, lowering carbon intensity, and returning
more cash to shareholders.” Last month, Chevron increased its
dividend per share by 6%, and its Board authorized a new $75
billion share repurchase program.
Higher Returns
Chevron expects to maintain capital and cost discipline to
deliver higher returns while growing energy supplies. In line with
these objectives, the company announced it is:
- Maintaining its guidance for annual organic capital
expenditures of $13 billion to $15 billion through 2027.
- Affirming its oil and gas production guidance of more than 3%
annual growth by 2027.
- Extending its 12% return on capital employed target to 2027 at
$60 Brent.
High return production growth supports growing shareholder
distributions. The company expects annual free cash flow growth
greater than 10% at $60 Brent and is raising its share buyback
guidance range to $10 to $20 billion per year. In addition, the
company will raise its targeted annual share buyback rate to $17.5
billion starting in the second quarter.
“We have the capital discipline and balance sheet strength to
offer a differentiated value proposition,” said Pierre Breber,
Chevron’s CFO. “We’re winning back investors with consistent and
growing cash returned to shareholders across the commodity price
cycle.”
Late last year, the company announced a more than 30% increase
in its 2023 organic capital expenditure budget relative to 2022
levels.
“Chevron is investing in advantaged assets in the Permian Basin,
Gulf of Mexico, Kazakhstan, Australia and elsewhere that we believe
drive superior performance,” said Nigel Hearne, executive vice
president, Oil, Products, and Gas. “We’re focused on executing with
excellence to grow value across our portfolio.”
Lower Carbon
Chevron updated investors on progress toward achieving its
target to reduce the carbon intensity of its oil and gas production
to 24 kg per barrel of oil equivalent by 2028, in part through
execution of carbon abatement projects. Also, the company provided
updates on its new energy business lines with the company halfway
to its 2030 renewable fuels target and taking steps to build
businesses in carbon capture, offsets, and hydrogen.
“We intend to be a leader delivering lower carbon solutions to
our customers in hard-to-abate sectors,” said Jeff Gustavson,
president of Chevron New Energies. “We believe we have unique
capabilities, well-positioned assets and long-standing customer
relationships to safely deliver higher returns and lower
carbon.”
Webcast
Chevron will conduct a webcast on Tuesday, February 28, 2023, at
8:30 a.m. ET to discuss the company’s strategy at the annual
investor meeting.
A webcast of the discussion will be available in listen-only
mode to individual investors, media, and other interested parties
on Chevron’s website at www.chevron.com under the “Investors”
section. Presentations, prepared remarks and a full transcript of
the meeting will also be available on the Investor Relations
website.
Chevron is one of the world’s leading integrated energy
companies. We believe affordable, reliable and ever-cleaner energy
is essential to achieving a more prosperous and sustainable world.
Chevron produces crude oil and natural gas; manufactures
transportation fuels, lubricants, petrochemicals and additives; and
develops technologies that enhance our business and the industry.
We are focused on lowering the carbon intensity in our operations
and growing lower carbon businesses along with our traditional
business lines. More information about Chevron is available at
www.chevron.com.
NOTICE
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 operations and energy transition plans 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,”
“aspires” 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 the
company’s 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;
public health crises, such as pandemics (including coronavirus
(COVID-19)) and epidemics, and any related government policies and
actions; disruptions in the company’s global supply chain,
including supply chain constraints and escalation of the cost of
goods and services; changing economic, regulatory and political
environments in the various countries in which the company
operates; general domestic and international economic, market and
political conditions, including the military conflict between
Russia and Ukraine and the global response to such conflict;
changing refining, marketing and chemicals margins; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; development of large carbon capture
and offset markets; the results of operations and financial
condition of the company’s suppliers, vendors, partners and equity
affiliates, particularly 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 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; higher inflation and related impacts; material reductions
in corporate liquidity and access to debt markets; the receipt of
required Board authorizations to implement capital allocation
strategies, including future stock repurchase programs and dividend
payments; 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 20
through 26 of the company’s 2022 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/20230228005662/en/
Braden Reddall -- +1 925-842-2209
Chevron (NYSE:CVX)
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