Chevron expects growth despite oil price drop
Chevron Corporation executives, at the company’s annual security analyst meeting in New York, expressed confidence in the long-term energy business and highlighted its growth outlook through 2017.
At the same time, company executives outlined near-term actions to address the recent decline in commodity prices.
“The fundamentals of the oil and gas business remain attractive for our company and investors, as our products are vital to a growing world economy,” said John Watson, Chevron’s chairman and CEO.
Watson added that the company is well-positioned to manage through the recent drop in commodity prices and it is taking several responsive actions, including curtailing capital spending and lowering costs.
“Over the next few years, we expect to deliver significant cash flow growth as projects currently under construction come online. Our intention is to demonstrate performance that will allow our 27-year history of successive increases in our annual dividend payout to continue,” Watson said.
Jay Johnson, senior vice president, upstream said:
“We continue to make steady progress on our LNG and deepwater developments, and will continue to ramp-up production from our shale and tight assets, particularly from our very attractive Permian Basin acreage position.”
“We expect to achieve 20 percent production growth by 2017, a rate which is simply unmatched by our industry peers. More importantly, our new production is expected to have considerably higher margins than in our existing portfolio.”