press releaseChevron Affirms Production, Margins, and Cash Flow Growth Plans

Upgrades Permian potential

NEW YORK, N.Y., March 7, 2017 – Chevron Corporation (NYSE: CVX) hosted its annual security analyst meeting in New York where executives highlighted the company's growing free cash flow from its advantaged portfolio.

“We intend to be cash balanced in 2017, and to grow free cash flow in the years thereafter,” said John Watson, Chevron’s chairman and chief executive officer. “We're finishing projects under construction, which adds revenue and reduces spend.  We’re concentrating our new investments on short cycle-time, high-return opportunities from our advantaged positions such as the Permian basin.”  Watson noted 75 percent of the company’s 2017 capital budget is expected to generate cash within the next two years.

Watson reinforced the company’s priority to maintain and grow the dividend and to keep a strong balance sheet through commodity price cycles.  “We’ve increased the annual dividend 29 years in a row.  We recognize our shareholders value a growing distribution and a prudent balance sheet.” 

Jay Johnson, executive vice president, upstream, reviewed Chevron’s upstream opportunities.  “We’re focused on improving returns.  We’ll do this by operating safely and reliably, successfully starting-up and ramping-up projects, and high-grading our investment opportunities.  Gorgon, Wheatstone and other projects are progressing well, and we’re now pivoting to the Permian basin where we see ultimate production potential exceeding 700,000 barrels per day within a decade.”

Additionally Johnson said, “We are confident in our ability to grow production and cash margins.” 

Presentations and a full transcript of the meeting are available on the Investor Relations website at



This press release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “focus,” “on schedule,” “on track,” “goals,” “objectives” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or the delay or failure of such transactions to close based on required closing conditions set forth in the applicable transaction agreements; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 22 of the company’s 2016 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.  

Published: March 2017