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Investing.com -- Chevron on Wednesday outlined plans to accelerate returns and expand into new energy-linked ventures as part of its long-term strategy through 2030, detailing steady share repurchases, stronger cash flow, and its first AI-powered data center project.
At its Investor Day, the company said it expects to buy back between $10 billion and $20 billion of shares annually through 2030, assuming Brent crude averages between $60 and $80 per barrel. That represents roughly 3% to 6% of shares outstanding per year between 2026 and 2030.
“Chevron’s sustained cash generation underpins superior shareholder returns,” said Chevron CFO Eimear Bonner. “Our advantaged assets, balance sheet strength and disciplined capital program provide the foundation to thrive in any price environment.”
Chevron sees both earnings per share (EPS) and adjusted free cash flow (FCF) growing more than 10% annually at $70 Brent.
Capital spending is forecast at $18 billion to $21 billion per year, down from the previous forecast of between $19 billion and $22 billion.
The oil major aims to maintain a capex and dividend breakeven below $50 Brent through the decade and improve its return on capital employed by more than three percentage points by 2030.
Synergies from the $55 billion Hess deal, which was completed in July, are projected to rise to $1.5 billion, with total structural cost reductions reaching $3 billion to $4 billion by the end of 2026.
Production is expected to grow by 2% to 3% annually through 2030.
“We believe Chevron is uniquely positioned to grow earnings and free cash flow into the next decade,” said Mike Wirth, Chevron’s chairman and CEO.
“Never in my career have I seen a higher confidence outlook, further into the future and with lower execution risk; Chevron is stronger, more resilient, and better positioned than ever.”
Chevron also plans to develop its first AI data center project in West Texas, designed to be powered by natural gas and targeted to come online in 2027. Bonner said negotiations are ongoing with potential customers, with a final investment decision planned early next year.
Chevron has held talks with major technology firms, including OpenAI and Meta, about energy supply for AI infrastructure.
Bonner said the company intends to increase exploration spending and apply AI to accelerate data analysis, shortening project timelines that traditionally take years to complete.