Chevron Corp. Q4 FY2024 earnings call

• Mike Wirth highlighted record production globally and in the US, Permian growth (+18% from 2023), project start-ups in the Gulf of America, PDC Energy integration, portfolio optimization, $27B cash return to shareholders, and new energies progress including bio-diesel sales and CCUS/hydrogen projects.
• Eimear Bonner discussed financials: Q4 adjusted earnings $3.6B, full-year organic CapEx aligned with $16B budget, maintained 10.5% adjusted ROCE, $27B cash returned to shareholders, 5% dividend increase, and capital discipline with buyback range $10-$20B.

Chevron reported Q4 earnings of $3.2 billion, or $1.84 per share. Adjusted earnings were $3.6 billion, or $2.06 per share. Included special items of $1.1 billion. Full-year organic CapEx was $16 billion. Adjusted upstream earnings were impacted by asset retirement obligations and inventory valuation; adjusted downstream earnings were lower due to softer refining and chemicals margins. Chevron's cash generation continued, with production growing 7% in 2024, $8 billion from asset sales, and a 5% dividend increase.

• Expect free cash flow of $5B in 2025 and $6B in 2026 at $70 Brent. Production expected to reach 1M barrels of oil equivalent per day in 2025. Target $2B-$3B structural cost reductions by 2026. Organic CapEx within $14-16B range.

Q: Could you walk through one-offs impacting cash flow this quarter?

A: Eimear Bonner said tax charges from Canadian asset sale ($1.5B), special items ($500M), and other impacts ($500M) contributed to cash flow impact.

Q: Talk about longer-term opportunities beyond 2026?

A: Mike Wirth mentioned Eastern Med expansions, Argentina potential, West Africa opportunities, Venezuelan Partition Zone, and exploration portfolio.

Q: Thoughts on power business and GE Vernova deal?

A: Mike Wirth said power business leverages Chevron's strengths in gas, power operation, and tech, with 7 GE turbines reserved for 2026/27 delivery to support AI data centers.