Chevron affirms cash flow growth

“We intend to grow free cash flow in 2018 and thereafter,” said Michael K. Wirth, Chevron’s Chairman and Chief Executive Officer. “Even with no commodity price appreciation, we expect to deliver stronger upstream cash margins and production growth. This is a powerful combination […] And we intend to maintain capital discipline, as evidenced by an US$18 billion investment programme this year and an US$18 - US$20 billion annual investment range projected through 2020.”

The company emphasised its portfolio strength, highlighting resilience and sustainability through the price cycle, as well as numerous attractive development opportunities under a ratable capital programme. “We plan to further lower our cost structure, get more value from our existing assets and continue to high-grade our portfolio. We believe execution of these plans will support our primary commitment to shareholders, which is a sustained and growing dividend over time. As we generate surplus cash, we would expect to be in a position to resume our share repurchase programme.”

Jay Johnson, Executive Vice President, upstream, reviewed Chevron’s upstream opportunities. “Our objective is to ensure our upstream business provides competitive returns throughout the price cycle. We’re focused on operating safely and reliably, continuing to lower our costs, and delivering production growth from the Gorgon and Wheatstone LNG projects in Australia […] In addition, we’re advancing development of our unconventional resources, particularly in the US Permian Basin, where we have a leading position. We’re seeing reserves grow, costs shrink, efficiencies expand and production rise.”

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