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Chevron Plans To Raise Shareholder Returns Without Relying On Rising Oil Prices

Chevron Corp. (CVX) said it has the potential to distribute $75 billion - $80 billion in cash to shareholders over the next five years. Higher returns are primarily driven by the new $2 billion target for cost and margin improvements.

Chevron also anticipates 9 percent compound annual growth in adjusted operating cash flow per share through 2024 while holding annual capital spending in a range of $19 billion to $22 billion. The combination is expected to result in the doubling of adjusted free cash flow per share by 2024.

Chevron Corp. projects compound annual production growth greater than 3 percent from 2019 to 2024, excluding any future unannounced asset sales.

"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 CFO.

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