Chevron announced its five‑year strategy on November 12, 2025, outlining a path to sustained free‑cash‑flow growth, disciplined capital allocation, and a new AI‑data‑center power project in West Texas. The plan also confirms the completion of the $53 billion all‑stock acquisition of Hess, which is expected to add significant upstream assets and free‑cash‑flow upside.
The company reiterated its commitment to a $10 billion to $20 billion annual share‑repurchase program and a quarterly dividend of $1.71 per share. Management projected free‑cash‑flow growth of more than 10% per year through 2030, driven by a 2%‑to‑3% annual production growth and a focus on operational efficiency. The capex guidance was trimmed to $18 billion to $21 billion annually, reflecting a tighter capital discipline that aligns with the company’s $50‑per‑barrel breakeven target.
A centerpiece of the strategy is a natural‑gas‑powered power plant slated to start up in 2027, designed to supply electricity to AI workloads in West Texas. The project leverages Chevron’s Permian Basin gas supply and positions the company to monetize its natural‑gas portfolio through a high‑value, low‑carbon power stream. The partnership with Engine No. 1 and GE Vernova underscores Chevron’s intent to become a key energy supplier for the rapidly expanding AI sector.
Segment performance data show that upstream operations delivered a 3% rise in production, while downstream and chemicals segments maintained stable margins. The company’s operating margin expanded to 9.9% from 9.7% in the prior year, driven by higher upstream output and disciplined cost management. Management cited strong pricing power in the upstream segment and successful integration of Hess assets as key drivers of margin improvement.
CEO Mike Wirth emphasized that Chevron is “uniquely positioned to grow earnings and free cash flow into the next decade,” highlighting the company’s resilience and lower execution risk. CFO Eimear Bonner noted that the company’s “advantaged assets, balance‑sheet strength and disciplined capital program” underpin superior shareholder returns. Analyst coverage remained largely positive, with investors noting the company’s confidence in maintaining profitability through cost discipline and strategic investments.
The investor day signals Chevron’s confidence in a long‑term value‑creation strategy that balances traditional oil and gas operations with forward‑looking energy initiatives. The combination of a robust free‑cash‑flow outlook, disciplined capital allocation, and a high‑growth AI power project positions the company to capture emerging demand while sustaining shareholder returns. Investors will likely view the plan as a clear roadmap for continued growth and resilience in a shifting energy landscape.
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