- $75 to $80 billion shareholder distribution capacity over
five years
- Adjusted free cash flow per share doubles by 2024
- Return on capital employed exceeds 10% by 2024
At its annual Security Analyst Meeting today, Chevron
Corporation (NYSE: CVX) announced expectations to deliver leading
shareholder returns through disciplined capital spending, improved
cost efficiency, and continued cash flow growth over the next five
years.
“Chevron has a winning investment proposition,” said Michael
Wirth, Chevron’s chairman and CEO. “We believe our advantaged
portfolio and capital efficiency enable us to grow cash flows and
increase returns without relying on rising oil prices. Through
continued execution of our strategy, Chevron has the potential to
distribute $75 - $80 billion in cash to shareholders over the next
five years.”
Robust Cash Generation & Improved Returns on
Capital
Higher returns are primarily driven by the company’s new $2
billion target for cost and margin improvements as well as short
cycle, capital efficient investments. The company also expects 9
percent compound annual growth in adjusted operating cash flow per
share through 2024 while holding annual capital spending in a
narrow range of $19 to $22 billion. The combination is expected to
result in the doubling of adjusted free cash flow per share by
2024.
“We remain focused on a returns-driven approach to capital
allocation, investing in lower-risk projects that should drive
solid earnings and cash flow growth. As a result, we expect return
on capital to exceed 10 percent by 2024 at flat $60 Brent nominal
prices, an improvement of over 300 basis points,” said Pierre
Breber, Chevron’s chief financial officer. “This performance is
supported by an unmatched balance sheet and the lowest dividend
breakeven among our peers.”
More Cash Returned to Shareholders
Chevron remains committed to delivering on its financial
priorities and returning more cash to its shareholders, as
demonstrated by an 8 percent dividend increase in 2020 and $5
billion of expected annual share repurchases. Combined, the company
has a total shareholder yield greater than 7 percent.
“Execution of our strategy is positioning Chevron to return more
cash to shareholders, today and into the future,” Wirth said. “Even
with price volatility, we have the capability to deliver leading
dividend growth and sustain our buyback program well into the
future.”
Disciplined Investments and Production Growth
Chevron continues to execute its lower-risk and disciplined
capital program, highlighted by its world-class Permian Basin
position, the major expansion in Kazakhstan, and an attractive
queue of deepwater opportunities in the Gulf of Mexico. The company
expects compound annual production growth greater than 3 percent
from 2019 to 2024, excluding any future unannounced asset
sales.
“Our long-term production profile is strong and growing. We have
a deep unconventional resource base and expect to see sustained
production over 1 million barrels per day in the Permian through
2040 at relatively flat activity levels,” said Jay Johnson,
executive vice president, Upstream. “Our experience and technology
edge in the deepwater should enable continued development in the
Gulf of Mexico, Brazil, and West Africa, and we have long-lived,
low-decline assets in Australia and Kazakhstan. On top of this
foundation, we have additional organic opportunities already in our
portfolio that could attract future capital and deliver
upside.”
Approach to Energy Transition
The company continues to invest in the future of energy to meet
the world’s need for affordable, reliable and ever-cleaner energy.
This includes lowering its carbon intensity cost efficiently,
increasing renewables in support of its business, and investing in
potential breakthrough technologies such as alternative fueling
infrastructure and carbon capture.
“Our approach delivers greenhouse gas reductions in the short
term while making investments in potential future breakthrough
technologies for the long term,” Wirth added. “Chevron has the
scale, capability and balance sheet strength to advance the
innovations that will play a significant role in the future of
energy.”
Non-GAAP Measures
For purposes of this news release, expected growth in adjusted
operating cash flow refers to growth in cash flow from operations
(CFFO) less working capital and special items divided by average
diluted shares outstanding and assumes $5 billion per year in share
repurchases.
Expected growth in adjusted free cash flow (FCF) refers to
growth in CFFO less cash capital expenditures, working capital and
special items divided by average diluted shares outstanding and
assumes $5 billion per year in share repurchases. FCF represents
the cash available to creditors and investors after investing in
the business.
For additional information regarding expected future
performance, including adjusted CFFO and adjusted FCF, please refer
to the presentations and full transcript of the meeting available
on the Investor Relations website at www.chevron.com.
Chevron Corporation is one of the world's leading integrated
energy companies. Through its subsidiaries that conduct business
worldwide, the company is involved in virtually every facet of the
energy industry. Chevron explores for, produces and transports
crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells
petrochemicals and additives; generates power; and develops and
deploys technologies that enhance business value in every aspect of
the company's operations. Chevron is based in San Ramon, Calif.
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” and “us” 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.
CAUTIONARY STATEMENT 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 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,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “positions,” “pursues,” “drives,” “may,” “could,”
“should,” “will,” “budgets,” “outlook,” “trends,” “guidance,”
“focus,” “on schedule,” “on track,” “is slated,” “goals,”
“objectives,” “strategies,” “opportunities,” “poised,” “potential,”
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 projected in
the forward-looking statements are: changing crude oil and natural
gas prices; changing refining, marketing and chemicals margins; the
company's ability to realize anticipated cost savings 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; technological
developments; 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; 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, and public health crises, such as
pandemics and epidemics; crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries and other producing countries, or other natural
or human causes beyond the company’s control; changing economic,
regulatory and political environments in the various countries in
which the company operates; general domestic and international
economic and political conditions; the potential liability for
remedial actions or assessments under existing or future
environmental regulations and litigation; significant operational,
investment or product changes 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, industry-specific taxes, 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; receipt of required Board authorizations to effect
future dividend and share repurchases; 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 21 of the company’s 2019
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 presentation could also have material
adverse effects on forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200303005258/en/
Braden Reddall -- +1 925-842-2209
Chevron (NYSE:CVX)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Chevron (NYSE:CVX)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024