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Chevron Outlines Strategy for Disciplined Growth and Higher Returns

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These translations are done via Google Translate

Based on strong performance, the Company now expects:

  • Capital & exploratory (C&E) expenditures of $19 to 22 billion from 2021 to 2023
  • Three to four percent compound annual production growth through 2023
  • Permian unconventional production of 900,000 barrels per day in 2023
  • Six percent shareholder yield in 2019

NEW YORK–(BUSINESS WIRE)–At its annual Security Analyst Meeting today, Chevron Corporation (NYSE: CVX) announced expectations for significant cash flow growth, disciplined spending, and expanding production over the next five years.

“Chevron is in an exceptional position to deliver industry-leading value to shareholders,” said Michael Wirth, Chevron’s chairman and chief executive officer. “Our advantaged portfolio is driving strong production growth with lower execution risk, higher cash flow and increased cash returns to shareholders.”

Disciplined Capital Program

The company outlined a ratable capital program and a returns-driven approach to capital allocation. “We’ve refocused our investment priorities,” said Wirth, “and expect 70 percent of this year’s spend to deliver cash flow within two years.” The Company reaffirmed a disciplined C&E program and established an annual target of $19 to $22 billion from 2021 to 2023.

Jay Johnson, executive vice president, upstream, explained the ratable investment will deliver steady growth. “We expect to deliver a three to four percent compound annual production growth rate through 2023,” he said. “Our strong resource base gives us the flexibility and choices that allow us to fund the projects we believe will yield the best returns.”

Significant Growth in the Permian


Chevron’s outlook is supported by strong performance in the Permian Basin, where the company has added almost 7 billion barrels of resource and doubled its portfolio value over the past two years. Permian unconventional net oil-equivalent production is now expected to reach 600,000 barrels per day by the end of 2020, and 900,000 barrels per day by the end of 2023.

The company’s unique position in the Permian is “characterized by long-held acreage, zero-to-low royalty on more than 80 percent of our land position, and minimal drilling commitments,” said Johnson. These attributes together with the deployment of new technologies are driving higher returns, stronger cash flows, and increased value.

Delivering on Financial Commitments

Chevron expects approximately $30 billion of cash generation at $60 Brent in 2019 to be used to fund the 6 percent annual dividend increase, a ratable and high-return capital program, and $4 billion of expected share repurchases.

“Chevron is operating from a position of strength,” Wirth added. “The balance sheet is strong. Our dividend breakeven is low. We’re disciplined with capital. And we’re generating strong free cashflow. Chevron has an extremely compelling investment proposition that is going to continue over the long-term.”

Presentations and a full transcript of the meeting will be available on the Investor Relations website at

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