Source: Chevron

Chevron Corp. said on Tuesday that it could return as much as $80 billion to shareholders by 2024. In a statement released ahead of its annual Security Analyst Meeting, the oil giant said the returns will be achieved by reining in capital spending, improving cost efficiency and cash flow growth.

“Chevron has a winning investment proposition,” said Michael Wirth, Chevron’s chairman and CEO. “We believe our advantaged portfolio and capital efficiency enable us to grow cash flows and increase returns without relying on rising oil prices. Through continued execution of our strategy, Chevron has the potential to distribute $75$80 billion in cash to shareholders over the next five years.”

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. The company cited its “world-class” positions in the Permian Basin, Kazakhstan, and an attractive queue of deepwater opportunities in the Gulf of Mexico as catalysts for growth.

“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.

Reuters reported on Monday that the company is offering buyouts to reduce its U.S. oil exploration and production workforce as it moves to cut costs in the face of sharply lower oil and gas prices.

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Source: Equities News