Chevron Reaffirms Higher Returns, Lower Carbon Objectives [PDF Download]

(Chevron, 28.Feb.2023) — At its annual investor meeting, Chevron Corporation (NYSE: CVX) reported on its progress to leverage its strengths to safely deliver lower carbon energy to a growing world.


  • Raises share buyback guidance to $10bn to $20bn per year
  • Expects free cash flow annual growth greater than 10% at $60 Brent
  • Updates progress toward targets for lower carbon intensity and new energies growth

“Chevron intends to be a leader in both traditional and new energy businesses,” said Mike Wirth, chairman and CEO. “We’re growing energy supply, lowering carbon intensity, and returning more cash to shareholders.” Last month, Chevron increased its dividend per share by 6%, and its Board authorized a new $75bn share repurchase program.

Higher Returns

Chevron expects to maintain capital and cost discipline to deliver higher returns while growing energy supplies. In line with these objectives, the company announced it is:

  • Maintaining its guidance for annual organic capital expenditures of $13bn to $15bn through 2027.
  • Affirming its oil and gas production guidance of more than 3% annual growth by 2027.
  • Extending its 12% return on capital employed target to 2027 at $60 Brent.

High return production growth supports growing shareholder distributions. The company expects annual free cash flow growth greater than 10% at $60 Brent and is raising its share buyback guidance range to $10bn to $20bn per year. In addition, the company will raise its targeted annual share buyback rate to $17.5bn starting in the second quarter.

“We have the capital discipline and balance sheet strength to offer a differentiated value proposition,” said Pierre Breber, Chevron’s CFO. “We’re winning back investors with consistent and growing cash returned to shareholders across the commodity price cycle.”

Late last year, the company announced a more than 30% increase in its 2023 organic capital expenditure budget relative to 2022 levels.

“Chevron is investing in advantaged assets in the Permian Basin, Gulf of Mexico, Kazakhstan, Australia and elsewhere that we believe drive superior performance,” said Nigel Hearne, executive vice president, Oil, Products, and Gas. “We’re focused on executing with excellence to grow value across our portfolio.”

Lower Carbon

Chevron 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. Also, the company provided updates on its new energy business lines with the company halfway to its 2030 renewable fuels target and taking steps to build businesses in carbon capture, offsets, and hydrogen.

“We intend to be a leader delivering lower carbon solutions to our customers in hard-to-abate sectors,” said Jeff Gustavson, president of Chevron New Energies. “We believe we have unique capabilities, well-positioned assets and long-standing customer relationships to safely deliver higher returns and lower carbon.”