Chevron CEO Sees 'Plenty of Cash Flow Coming'

Chevron outlines ambitious growth targets in the Permian Basin, leveraging its extensive land holdings and expertise in drilling operations. The company addresses challenges like takeaway capacity and price shocks by maintaining a strong balance sheet and diversified business. Chevron focuses on short-cycle projects for quick cash flow and plans steady production growth. Financial priorities include dividends and share buybacks, with a positive outlook on future production and economic impact.

What is one of Chevron's key advantages in the Permian Basin?

• Dependence on external producers

• Large land holdings with low cost basis

• High royalty payments

• Limited experience in drilling operations

How does Chevron manage transportation challenges in the Permian?

• By reducing production to match pipeline capacity

• By building its own pipelines

• By relying on competitive shipping rates from pipeline builders

• By investing heavily in midstream infrastructure

How does Chevron's balance sheet compare to its competitors?

• It is average compared to others

• It is the strongest with the lowest net debt ratio

• It is the weakest among major competitors

• It has the highest net debt ratio

What is a significant feature of Chevron's investment strategy in shale?

• Exclusive focus on international projects

• Focus on long-cycle projects

• Investment in short-cycle projects with quick returns

• Avoidance of shale investments

What is a key characteristic of Chevron's shale investments?

• They require more capital for lower returns

• They are the highest return investments in the portfolio

• They are less economically attractive

• They are only located in the Permian Basin

Why does Chevron prioritize dividends over share buybacks?

• Buybacks are more volatile

• Dividends are viewed as a long-term promise to shareholders

• Dividends are seen as a temporary measure

• Shareholders prefer buybacks for tax reasons

What is Chevron's approach to handling excess cash?

• Reinvesting in all available projects

• Holding cash reserves indefinitely

• Using share repurchases to demonstrate capital discipline

• Increasing dividends significantly