Chevron Eyes 10% Annual Cash Flow Growth by 2030

Chevron, one of the world’s leading oil producers, has announced a strategic plan to grow free cash flow by more than 10% annually through 2030 while steadily increasing oil and gas production. The move reflects the company’s focus on efficiency and cost discipline following a restructuring earlier this year.

The company completed its $55 billion acquisition of Hess in July, a deal delayed for over a year, which had previously held back long-term financial guidance. Chevron currently produces 4.1 million barrels of oil equivalent per day, and it expects production to rise by 2% to 3% each year.

To support these goals, Chevron plans to reduce annual capital expenditure to between $18 billion and $21 billion, down from the earlier guidance of $19 billion to $22 billion. At the same time, the company has increased its cost-cutting target to $3 billion–$4 billion by the end of next year, up by $1 billion from previous projections.

Significant savings will come from upstream divestments, business simplification efforts, and the increased use of technology to monitor operations remotely. Chevron has already achieved around half of its cost reduction target, demonstrating progress toward its financial goals.

Even under a scenario where Brent crude prices fall to $50 per barrel, Chevron expects to maintain sufficient cash flow to cover both capital expenditures and dividend payments through 2030, highlighting the resilience built into its operational strategy.