Chevron Backs Outlook For Production, Higher Resturns; Lifts Share Buyback Guidance

(RTTNews) - Integrated energy company Chevron Corp. (CVX) on Tuesday affirmed its outlook for oil and gas production and higher returns, and also raised its share buyback guidance.

At its annual investor meeting, the company said it expects to maintain capital and cost discipline to deliver higher returns while growing energy supplies.

In line with these objectives, the company backed its oil and gas production guidance of more than 3 percent annual growth by 2027.

Chevron maintained its guidance for annual organic capital expenditures of $13 billion to $15 billion through 2027, and extended its 12 percent return on capital employed target to 2027 at $60 Brent.

Further, the company raised its share buyback guidance range to $10 to $20 billion per year. In addition, Chevron will raise its targeted annual share buyback rate to $17.5 billion starting in the second quarter.

Mike Wirth, chairman and CEO, said, "We're growing energy supply, lowering carbon intensity, and returning more cash to shareholders."

Last month, Chevron increased its dividend per share by 6 percent, and its Board authorized a new $75 billion share repurchase program.

The company also said it expects annual free cash flow growth greater than 10 percent at $60 Brent.

Chevron further updated investors on progress toward achieving its target to reduce the carbon intensity of its oil and gas production to 24 kg per barrel of oil equivalent by 2028, in part through execution of carbon abatement projects.