Chevron Targets Double-Digit Cash Flow Growth in 2030 Roadmap

Core Viewpoint - Chevron has presented a confident long-term outlook with a five-year plan focused on sustained free cash flow growth, capital spending discipline, production expansion, and entering power solutions for AI-driven data center demand [1] Group 1: Financial Strategy - The company has reduced its annual capital expenditure guidance to a range of $18–$21 billion while forecasting production increases of 2–3% per year through 2030 [2] - Chevron aims to keep its breakeven below $50 Brent and has increased expected Hess-related synergies to $1.5 billion, with structural cost reduction targets raised to $3–$4 billion by the end of 2026 [2] - The company plans to distribute $10–$20 billion annually through share buybacks by 2030 at $60–$80 Brent, emphasizing its strong free cash flow and fortified balance sheet [5] Group 2: Growth Initiatives - Chevron is focusing on a low-risk, high-confidence project slate across U.S. shale, the Gulf of Mexico, and international assets, building on high-profile acquisitions like Hess [3] - The company is entering the power business to supply data centers, with its first dedicated project in West Texas expected to be operational by 2027 [3] - The Downstream and Chemicals segment is also set for growth, with two major chemicals units scheduled to start up in 2027 [4] Group 3: New Energy Strategy - Chevron emphasizes a pragmatic strategy in new energies, focusing on returns and integration with existing strengths, targeting areas such as renewable fuels, hydrogen, CCUS, lithium, and the new power business [6] - This approach aims to mitigate execution risks associated with large-scale renewables while aligning with evolving policy and demand [6]