Chevron’s Five-Year Plan Prioritizes Superior Shareholder Returns

Core Viewpoint - Chevron is shifting its focus towards increasing free cash flow and shareholder returns rather than solely growing oil production, as outlined in its five-year plan to 2030 [1][4]. Group 1: Financial Strategy - Chevron plans to enhance free cash flow and earnings per share through deeper cost cuts, synergies from the Hess acquisition, and reduced capital expenditure [1][2]. - The company aims to maintain capital and cost discipline while investing to extend cash flow growth into the next decade [2][3]. - Chevron expects to achieve structural cost reductions of $3 billion to $4 billion by the end of 2026 and boost synergies from the Hess acquisition to $1.5 billion [3]. Group 2: Production and Returns - Chevron anticipates growing oil and gas production by 2% to 3% annually through 2030 and improving return on capital employed by over 3% at a Brent price of $70 per barrel [2][3]. - The company aims to keep its capital expenditure and dividend breakeven below $50 per barrel Brent through 2030 [3]. Group 3: Leadership and Vision - Chevron's leadership expresses a strong confidence in the company's future, emphasizing a focus on value rather than volume [4]. - The company is positioned to grow earnings and free cash flow into the next decade, according to CEO Mike Wirth [3][4]. Group 4: New Energy Initiatives - Chevron is targeting its first AI data center power project in West Texas, with plans to deliver first power in 2027 [5]. - The company is adopting a pragmatic approach to new energies, leveraging its core strengths and early-mover advantage in the power business [5].