Chevron Affirms Production, Margins, and Cash Flow Growth Plans
March 07 2017 - 8:00AM
Business Wire
Upgrades Permian potential
Chevron Corporation (NYSE:CVX) hosted its annual security
analyst meeting in New York where executives highlighted the
company’s growing free cash flow from its advantaged portfolio.
“We intend to be cash balanced in 2017, and to grow free cash
flow in the years thereafter,” said John Watson, Chevron’s chairman
and chief executive officer. “We're finishing projects under
construction, which adds revenue and reduces spend. We’re
concentrating our new investments on short cycle-time, high-return
opportunities from our advantaged positions such as the Permian
basin.” Watson noted 75 percent of the company’s 2017 capital
budget is expected to generate cash within the next two years.
Watson reinforced the company’s priority to maintain and grow
the dividend and to keep a strong balance sheet through commodity
price cycles. “We’ve increased the annual dividend 29 years in a
row. We recognize our shareholders value a growing distribution and
a prudent balance sheet.”
Jay Johnson, executive vice president, upstream, reviewed
Chevron’s upstream opportunities. “We’re focused on improving
returns. We’ll do this by operating safely and reliably,
successfully starting-up and ramping-up projects, and high-grading
our investment opportunities. Gorgon, Wheatstone and other projects
are progressing well, and we’re now pivoting to the Permian basin
where we see ultimate production potential exceeding 700,000
barrels per day within a decade.”
Additionally Johnson said, “We are confident in our ability to
grow production and cash margins.”
Presentations and a full transcript of the meeting are available
on the Investor Relations website at www.chevron.com.
CAUTIONARY STATEMENT RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This press release contains forward-looking statements relating
to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum,
chemicals and other energy-related industries. Words or phrases
such as “anticipates,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “positions,” “pursues,” “may,” “could,” “should,”
“budgets,” “outlook,” “focus,” “on schedule,” “on track,” “goals,”
“objectives,” “strategies” and similar expressions are intended to
identify such forward-looking statements. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and other factors, many of which are beyond the
company’s control and are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. The reader should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this report. Unless legally required,
Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
marketing and chemicals margins; the company's ability to realize
anticipated cost savings and expenditure reductions; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; technological developments; the
results of operations and financial condition of the company's
suppliers, vendors, partners and equity affiliates, particularly
during extended periods of low prices for crude oil and natural
gas; the inability or failure of the company’s joint-venture
partners to fund their share of operations and development
activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats and terrorist acts, crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond its
control; changing economic, regulatory and political environments
in the various countries in which the company operates; general
domestic and international economic and political conditions; the
potential liability for remedial actions or assessments under
existing or future environmental regulations and litigation;
significant operational, investment or product changes required by
existing or future environmental statutes and regulations,
including international agreements and national or regional
legislation and regulatory measures to limit or reduce greenhouse
gas emissions; the potential liability resulting from other pending
or future litigation; the company’s future acquisition or
disposition of assets or the delay or failure of such transactions
to close based on required closing conditions set forth in the
applicable transaction agreements; the potential for gains and
losses from asset dispositions or impairments; government-mandated
sales, divestitures, recapitalizations, industry-specific taxes,
changes in fiscal terms or restrictions on scope of company
operations; foreign currency movements compared with the U.S.
dollar; material reductions in corporate liquidity and access to
debt markets; the effects of changed accounting rules under
generally accepted accounting principles promulgated by
rule-setting bodies; the company's ability to identify and mitigate
the risks and hazards inherent in operating in the global energy
industry; and the factors set forth under the heading “Risk
Factors” on pages 20 through 22 of the company’s 2016 Annual Report
on Form 10-K. Other unpredictable or unknown factors not discussed
in this news release could also have material adverse effects on
forward-looking statements.
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Chevron CorporationKent Robertson, +1 925-842-1456
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