US oil and gas producer Chevron Corp. (SPB: CVX) plans to increase production by 2-3% per year in the period up to and including 2030, the company said in a statement to Investor Day.
In the third quarter, production totalled 4.1 million barrels of oil equivalent per day.
The company expects free cash flow and earnings per share growth of more than 10 per cent a year in the period. These expectations are based on the assumption that the price of Brent crude oil will average $70 per barrel.
Chevron lowered its capital expenditure forecast for the period to end 2030 to $18-21bn from the previously expected $19-22bn. At the same time, it raised its cost savings target for the period to end 2026 by $1bn to $3-4bn.
The company plans to buy back $10-20bn worth of its own shares per year until the end of 2030, assuming the Brent price is in the $60-80 per barrel range.
Chevron also said it plans to build a power plant to serve a data centre in West Texas, where it produces shale gas. it is expected to start operating in 2027.
The company is in talks with a potential client and intends to make a final investment decision on the project early next year.