Chevron (CVX) Piper Sandler 25th Annual Energy Conference summary

Strategic investments and shareholder value

• Acquired 4.99% of Hess shares at a discount, reflecting confidence in merger arbitration and value creation for shareholders.

• Free cash flow expected to increase by $9–$10 billion by 2026, driven by TCO, Permian, and Gulf of America projects.

• Priorities include growing dividends, investing in projects, maintaining a strong balance sheet, and returning excess cash to shareholders.

Operational performance and project updates

• TCO project completed, ramping as expected with strong reliability and integrated operations center optimizing performance.

• No production interruptions from CPC pipeline or OPEC+ actions; high-margin barrels and stable contracts support resilience.

• Permian production plateau at 1 million barrels/day targeted through 2040, with capital efficiency and innovation enabling sustained output.

Capital allocation and efficiency

• Capital spend reduced from $40B to $16B over a decade, with further reductions planned as projects complete and efficiency improves.

• Long-term capital guidance set at $14–$16B, balancing project needs and financial priorities.

• Permian growth achieved with 40% fewer rigs than planned, leveraging drilling, completion, and production innovations.