Chevron Corp. (CVX: Quote) Tuesday said its key development projects remain on track and the oil giant is well positioned to deliver its 2017 production target.
John Watson, Chevron’s chairman and CEO, said, “We had another outstanding year in 2012. We continue to lead the industry in total shareholder returns and most other safety and financial performance metrics.”
Chevron, holding its annual security analyst meeting in New York today, said it is well positioned to deliver its 2017 target of 3.3 million barrels of oil-equivalent production first announced three years ago. In addition, the company’s project queue is gaining momentum to deliver growth beyond 2017.
George Kirkland, vice chairman and executive vice president, Upstream, highlighted the company’s upstream results, which include top rankings on earnings per barrel, cash margin per barrel and return on capital employed.
Kirkland said construction on its Australian LNG projects, Gorgon and Wheatstone, is progressing well, with first LNG for Gorgon targeted for early 2015.
According to him, “The projects we are bringing on line over the next five years have very sound economics and potential to increase our cash margins.”
Mike Wirth, executive vice president, Downstream and Chemicals, said the restructuring efforts are complete and that returns have increased 10 percent as a direct function of the improvements.
Chevron expects operating cash flows to grow significantly over the next five years, as new production comes online. The company plans to continue its cash distribution policies.
CVX closed at $118.73 on Monday.
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by RTT Staff Writer
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