American multinational Chevron (NYSE:CVX) hopes to start growing free cash flow next year and is zeroing in on short-cycle, high return opportunities in the Permian basin.
The strategy was unveiled at the firm’s annual security analyst meeting in New York.
Executives said the company was hoping to increase free cash flow from its “advantaged portfolio”.
And the ramping up of activities in the Permian could see see ultimate production potential exceeding 700,000 barrels per day within a decade, they claimed.
John Watson, Chevron’s chairman and chief executive officer said: “We intend to be cash balanced in 2017, and to grow free cash flow in the years thereafter.
“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 told analysts that 75 percent of the company’s 2017 capital budget is expected to generate cash within the next two years.
He also said the company’s priority was to maintain and grow the dividend and to keep a strong balance sheet through commodity price cycles.
Recommended for you
