Chevron banks on capital discipline to secure growth
US energy giant and LNG player, Chevron, is focused on growing the company’s free cash flow in 2018 and beyond even with no commodity price appreciation.
“We expect to deliver stronger upstream cash margins and production growth. This is a powerful combination,” said Michael Wirth, Chevron’s chairman and chief executive officer at the company’s annual security analyst meeting.
“We intend to maintain capital discipline, as evidenced by an $18 billion investment program this year and an $18-$20 billion annual investment range projected through 2020,” Wirth added.
Jay Johnson, executive vice president, upstream, said the company is also focused on delivering production growth from the Gorgon and Wheatstone LNG projects in Australia.
Chevron expects to have all five Gorgon and Wheatstone LNG trains generating cash flow by the second quarter of the year. The company noted it has approximately 50 Trillion cubic feet of discovered equity resource offshore Western Australia.