Chevron To Spend $15bn On Growth, New Energy Business  

Oil major, Chevron Corporation, has said, it is leveraging on its progress to leverage its strengths to safely deliver lower carbon energy to a growing world at its annual investor meeting.

Chevron also expects to maintain capital and cost discipline to deliver higher returns while growing energy supplies.

Under the objectives, the company announced it is maintaining its guidance for annual organic capital expenditures of $13 billion to $15 billion through 2027.

Chevron is affirming its oil and gas production guidance of more than 3 per cent annual growth by 2027 and in addition, the company is extending its 12 per cent return on capital employed target to 2027 at $60 Brent.

RELATED

Equities Extend Losing Streak As Capitalization Drops By N150bn

3 hours ago

Seplat Energy Drives Media Entrepreneurship, Empowers 50 Journalists

3 hours ago

High return production growth supports growing shareholder distributions. The company expects annual free cash flow growth greater than 10 per cent 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. We’re winning back investors with consistent and growing cash returned to shareholders across the commodity price cycle,”said Chevron’s CFO., Pierre Breber.

Late last year, the company announced a more than 30 per cent 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, executive vice president, Oil, Products, and Gas, Nigel Hearne.

“We’re focused on executing with excellence to grow value across our portfolio. Chevron intends to be a leader in both traditional and new energy businesses. We’re growing energy supply, lowering carbon intensity, and returning more cash to shareholders,” said chairman and CEO, Mike Wirth.

Last month, Chevron increased its dividend per share by 6 per cent and its board authorized a new $75 billion share repurchase programme.

Chevron also updated investors on progress toward achieving its target to reduce the carbon intensity of its oil and gas production to 24 kg per boe by 2028, in part through execution of carbon abatement projects.

The company equally, 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. We believe we have unique capabilities, well-positioned assets and long-standing customer relationships to safely deliver higher returns and lower carbon,” said President of Chevron New Energies, Jeff Gustavson.