The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Chevron slipped to No. 21 owing to low oil prices in 2025. But its shares and earnings have climbed this year as the Iran conflict sent those same prices skyrocketing. Chevron's 2025 acquisition of Hess is also beginning to add to its top line.

Fortune 500

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Energy sector dominated this year for the first time since 2008, with 28 companies featured on the list.

100 Fastest-Growing Companies

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Chevron

Fueled by a 52% jump in annual revenue, the oil giant moved back into the Top 25 of the Global 500 for the first time since 2015. 
<ul> 
 	<li>Chevron brought in $35.5 billion in profit.</li> 
 	<li>In November 2022, Chevron won permission from the U.S. Treasury Department to begin pumping oil in Venezuela again, resuming operations that had been interrupted by U.S. sanctions against that country.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Chevron

The oil giant climbed six spots on this year’s Fortune 500. Fueled by a 52% jump in annual revenue, Chevron moved back into the top 10 for the first time since 2015. 
<ul> 
 	<li>Chevron brought in $35.5 billion in profit, making it the sixth most profitable company on this year’s list.</li> 
 	<li>In November 2022, Chevron won permission from the U.S. Treasury Department to begin pumping oil in Venezuela again, resuming operations that had been interrupted by U.S. sanctions against that country.</li> 
</ul>

Industrials came out on top this year, with 22 companies featured on the list.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-37 Chevron

Like its Big Oil peers, Chevron experienced some much-needed financial healing in 2021 thanks to a bounce-back in demand for its products and a resulting surge in hydrocarbon prices. For the full year, the oil and gas giant reported profits of $15.6 billion, compared with a $5.5 billion loss in 2020. But Chevron faced unrest among shareholders, as some rebuked the company for underdelivering on its climate change promises. At the company’s annual meeting in May 2021, 61% of shareholders voted in favor of requiring Chevron to cut its Scope 3 emissions. Investors also expressed unease with a growing number of court judgments against the company outside the U.S., whose total value one 2021 report put at $50 billion. Chevron plans to spend $15 billion on oil and gas projects in 2022, 20% more than in the previous year; but at the end of 2021, it also announced a goal of being operationally net zero by 2050.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Chevron

Like its Big Oil peers, Chevron experienced some much-needed financial healing in 2021 thanks to a bounce-back in demand for its products and a resulting surge in hydrocarbon prices. For the full year, the oil and gas giant reported profits of $15.6 billion, compared with a $5.5 billion loss in 2020; it also climbed 11 rungs on the Fortune 500 ladder. But Chevron faced unrest among shareholders, as some rebuked the company for underdelivering on its climate change promises. At the company’s annual meeting in May 2021, 61% of shareholders voted in favor of requiring Chevron to cut its Scope 3 emissions. Investors also expressed unease with a growing number of court judgments against the company outside the U.S., whose total value one 2021 report put at $50 billion. Chevron plans to spend $15 billion on oil and gas projects in 2022, 20% more than in the previous year; but at the end of 2021, it also announced a goal of being operationally net zero by 2050.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-075-Chevron

COVID-19 socked the oil and gas industry, with energy demand evaporating amid global lockdowns. Particularly hard hit were transport fuels, Chevron’s bread and butter. The company lost $5.5 billion, from a $2.9 billion profit the year before—itself, a sharp year-on-year drop. Said CEO Mike Wirth: “2020 was a year like no other.” The company announced steep cuts to capital expenditure. But 2020 was notable for another milestone, too: Chevron bought Noble Energy in a $13 billion acquisition, an industry-record price tag. The deal was completed in the fourth quarter.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-27-Chevron

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-036-Chevron

Facing a dip in oil prices in 2019, the CEO of California-based Chevron, Mike Wirth, warned there was no “silver bullet” to improve returns as long as oil markets remained flat. And sure enough, full-year net income fell 80% to $2.9 billion. Revenues and cash flow declined, too, forcing the company to cut unprofitable projects—and to refocus on the U.S. shale sector. Its assets in Venezuela, which it held on to even as other oil companies left the country amid economic collapse, have also seen a new twist: This spring, the Trump administration ordered Chevron to “wind down” its operations in the country.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-015-Chevron

Facing a dip in oil prices in 2019, the CEO of California-based Chevron, Mike Wirth, warned there was no “silver bullet” to improve returns as long as oil markets remained flat. And sure enough, full-year net income fell 80% to $2.9 billion. Revenues and cash flow declined, too, forcing the company to cut unprofitable projects—and to refocus on the U.S. shale sector. Its assets in Venezuela, which it held on to even as other oil companies left the country amid economic collapse, have also seen a new twist. This spring, the Trump administration ordered Chevron to “wind down” its operations in the country.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Chevron is the second-largest integrated energy giant that’s based in the U.S., with an exploration and production arm as well as a refining and retail segment. Its products are sold at more than 8,000 Chevron and Texaco gas stations in the U.S. As an oil major, its operations also span the globe. The company changed its name to Chevron from ChevronTexaco in 2005.

Q2 2026

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Q4 2024

Chevron (CVX): Company Profile, Stock Price, News, Rankings

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Chevron

chevron

Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's Fourth Quarter twenty twenty four Earnings Conference Call. As a reminder, this conference call is being recorded. I will now turn the conference call over to the Head of Investor Relations of Chevron Corporation, Mr.

Thank you, Katie, and welcome to Chevron's fourth quarter twenty twenty four earnings conference call and webcast. I'm Jake Spiering, Head of Investor Relations. Our Chairman and CEO, Mike Worth and CFO, Eimear Bonner, are on the call with me today. We will refer to the slides and prepared remarks that are available on Chevron's website. Before we begin, please be reminded that this presentation contains estimates, projections and other forward looking statements.

A reconciliation of non GAAP measures can be found in the appendix to this presentation. Please review the cautionary statement and additional information presented on Slide 2. Now, I will turn it over to Mike.

Thanks, Jake, and thank you everyone for joining us today. Chevron delivered another year of strong results in 2024. Which achieved record production both globally and in The United States and reached key milestones that are expected to underpin years of future cash flow. This includes outstanding performance in the Permian, exceeding expectations with production growth of nearly 18% from last year, delivering key project startups in the Gulf Of America, fully integrating PDC Energy, expanding our position in the DJ Basin, optimizing our portfolio through asset sales and swaps that maximize long term value, including completing WPMP and achieving first oil at the future growth project at TCO last week. We also returned a record $27,000,000,000 in cash to shareholders through dividends and buybacks.

Over the past two years, we've repurchased $30,000,000,000 and reduced our outstanding share count by 10%. We continue to build our new energies business and complete projects to lower the carbon intensity of our operations. In 2024, we sold over 20000000 barrels of bio based diesel and advanced foundational projects in CCUS and hydrogen. We also completed projects designed to abate over 700000 tons of CO2 emissions annually. Now I'll turn it over to Hemer to go over the financials.

Thanks, Mike. Chevron reported earnings of $320,000,000,0.0 or $1,.84 per share. Adjusted earnings were $360,000,000,0.0 or $2,.06 per share. Included in the quarter were special items totaling $110,000,000,0.0 related to restructuring and impairment charges. Foreign currency gains were $7.20,000,000 dollars Full year organic CapEx was aligned with our announced $16,000,000,000 budget.

Inorganic CapEx of $5.30,000,000 dollars related mostly to lease acquisitions and new energies investments. We maintained double digit returns with adjusted ROCE of 10.5% for the year. Compared with last quarter, adjusted earnings were $900,000,000 lower. Adjusted upstream earnings were impacted by revisions to asset retirement obligations and timing effects, including year end inventory valuation. Adjusted downstream earnings were lower due to softer refining and chemicals margins and timing effects.

Chevron's cash generation continued to position the company for long term success while rewarding shareholders. In 2024, we invested capital efficiently, growing production by 7%, generated nearly $8,000,000,000 in proceeds from asset sales, sustained our long track record of dividend increases and repurchased 5% of shares outstanding and maintained a strong balance sheet ending the year with a net debt ratio of 10%. Chevron's long standing financial priorities have created value for shareholders. They have guided our actions through multiple commodity and investment cycles and will continue to govern how we allocate capital. Over the past five years, we've grown our dividend faster than the S and P five hundred and nearly double the rate of our closest peer.

Today, we announced a 5% increase in the dividend, marking the thirty eighth consecutive year with an annual increase to dividend payment per share. We're committed to capital discipline. Only the most competitive projects in our portfolio will get funded. Where assets don't compete for capital, we have a history of generating value commercially. The balance sheet is in excellent health with net debt below our historical levels.

We've repurchased 17 of the last twenty one years and intend to maintain a buyback range of $10,000,000,000 to $20,000,000,000 per year depending on market conditions. Compared to our peers, we're delivering growth with less capital and returning more cash to shareholders. In the past three years, we've returned $75,000,000,000 in cash to shareholders via dividends and share buybacks. Now I'll hand it over to Mike to cover our near term outlook.

Thanks, Neumar. Chevron is in a strong position today with near term catalysts that are expected to drive the company to even better performance in 2025 and 2026. Our objective is unchanged to safely deliver higher returns and lower carbon. In the next two years, we plan to achieve industry leading free cash flow growth, further strengthen our portfolio, including the expected completion of the Hess transaction in the advanced opportunities in renewable fuels, hydrogen, CCUS and power, while maintaining cost and capital discipline. It's important to note that the guidance provided today excludes Hess.

We continue to be very confident in Hess' position in the arbitration. We plan to host our next Investor Day with a longer term outlook after we close the transaction later this year. Chevron is poised for industry leading free cash flow growth. We expect to add $10,000,000,000 of annual free cash flow growth in annual free cash flow in 2026 led by growth in advantaged upstream assets. With additional production from FGP and a further reduction in affiliate CapEx, we expect a sustained increase in distributions from TCO going forward.

In the Gulf Of America, where we produce some of the highest margin barrels in our portfolio, we'll have additional growth as anchor and whale continue to ramp up and we bring Ballymore online. And in the Permian, we're focused on operational efficiency and free cash flow, positioning the asset as a core cash generator for the company. We're also executing plans to deliver stronger results across the entire portfolio, including cash savings from our targeted $2,000,000,000 to $3,000,000,000 reduction in structural costs and improved returns in our downstream and chemicals businesses. At TCO, we achieved first oil at FGP last week. This important milestone is a result of consistent disciplined execution by the project and operations teams.

Our focus remains on a safe and reliable ramp up of the plant. FGP adds 260000 barrels of oil production capacity to the existing plants. We expect to achieve full production rates, 1000000 barrels of oil equivalent per day within the next three months. With $70 Brent expected free cash flow to Chevron is $5,000,000,000 in 2025 and $6,000,000,000 in 2026. This includes fixed loan repayments and quarterly dividends.

We're proud to bring this large complex project online for the benefit of our shareholders and The Republic Of Kazakhstan and look forward to future collaboration to maximize the long term value of the Tengiz Reservoir. In 2024, execution efficiencies led to strong well and base business performance, helping us achieve another record for Permian production. Over the last five years, we've delivered compound annual growth of 16% while continuing to capture efficiencies. Through optimized pad and drilling designs and completion improvements like triple frac, we're able to achieve these production levels with 40% fewer company operated rigs than our plans included just a few years ago. We expect production to reach 1000000 barrels of oil equivalent per day in 2025 and plan to moderate growth in CapEx to drive predictable and durable free cash flow generation.

Our Permian portfolio delivered superior returns due to royalty advantaged acreage across all of the sub basins, which add to both the top and bottom line. We're continuing to develop and deploy technologies to enhance efficiencies and recoveries. We're leveraging our strengths in advanced chemicals and stimulation and scaling them across our shale and tight portfolio. Our world class upstream assets provide further growth opportunities that are poised to deliver value for decades. In the Gulf Of America, where we expect to grow production to 300000 barrels a day, We achieved first oil at the anchor and oil projects and Ballymore is expected to come online around the middle of the year.

In Western Australia, our discovered resource has the ability to keep our LNG plants full for decades. Last month, we announced an asset swap that will increase our equity in Wheatstone, which enables long term asset development and monetization. In West Africa, we have a queue of low cost developments that are expected to sustain production for many years. We recently extended leases in Nigeria and had a shelf discovery that will tie back to existing infrastructure. In Angola, we achieved first gas at the San Yalene gas connection project and we plan to bring online our Savindola development later this year.

In Eastern Mediterranean, we have a significant resource position we're continuing to unlock. Expansion projects at Leviathan and Tamar are expected to come online through the end of the decade. Turning to our Downstream and Chemicals businesses, we're focused on operating reliably and efficiently while executing competitive projects that extend our value chains and capture market synergies. The recently completed expansion at our Pasadena Refinery enhances our integrated value chain by running more Permian crude, supplying more products to our regional marketing business and expanding synergies with the Pascagoula Refinery. Our petrochemical growth projects in The U.

S. And Qatar are more than 50% complete and are expected to contribute to further cash flow growth beyond 2026. Both projects are feedstock advantaged, have competitive cost structures and are well positioned to serve growing demand. We have several projects in our new energies business that are expected to achieve key milestones in the next two years. In renewable fuels, we're in final commissioning of the Geismar renewable diesel expansion.

And at our Mungi joint venture, construction continues at the new oilseed processing plant in Louisiana, increasing our exposure across the renewable fuels value chain. We're working towards startup of the ACES green hydrogen project in Utah later this year, which will produce hydrogen from water and excess renewable power and store it underground for dispatchable lower carbon power generation. The project is 1 of the world's largest hydrogen storage projects and will have over 200 megawatts of electrolyzer capacity. In carbon capture and storage, Bayou Bend is working towards a fee decision for the offshore project and we're also developing plans to capture and store CO2 from our Pascagoula refinery. Earlier this week, we announced plans to jointly develop scalable, reliable power solutions to support growing energy demand from U.

S. Data centers. Chevron is positioned to participate in this growth and generate competitive returns through integration with our U. S. Natural gas business.

Experience in building and operating nearly 5 gigawatts of reliable behind the meter power and expertise in technologies that can help provide a pathway to reduce greenhouse gas emissions over time. We've secured slot reservations to purchase 7 natural gas fired turbines from GE Vernova with deliveries beginning and we're advancing site selection and engineering work while engaging customers. We look forward to sharing more as our plans develop. I'll hand it back to Ymir to close out our guidance for 2025 and 2026.

Thanks, Mike. In the cyclical commodity business, capital and cost discipline always matter. Chevron's CapEx and affiliate CapEx budgets reflect our commitment to capital efficiency, while funding a balanced portfolio of short and long cycle investments. Organic CapEx is expected to remain within our $14,000,000,000 to $16,000,000,000 guidance range. As spend in the Permian and Gulf Of America comes down, capital will flow elsewhere within the portfolio to support continued growth.

Affiliate CapEx is expected to trend down further as investments at TCO and CPChem come online. We're targeting $2,000,000,000

$3,000,000,000 in structural cost reductions by the Work is underway to deliver these savings through asset sales, scaling technology solutions such as expanding the use of robotics and changing how we work to improve efficiencies. We're executing our plans to lower absolute costs while delivering growth. Last year worldwide oil equivalent production was the highest in our history benefiting from a larger position in the DJ Basin following our acquisition of PDC Energy and nearly 18% growth in the Permian. Excluding asset sales, we expect production to grow around 6% annually through 2026. In 2025, we expect growth to be weighted towards the second half of the year as key projects in Tengiz and the Gulf Of America come online and ramp throughout the year.

We're excited about the year ahead. We're focused on delivering growth across advantaged assets and value chains while reducing absolute costs, starting up profitable new energy projects and advancing new behind the meter power solutions and continuing to reward our shareholders with higher returns and a differentiated value proposition. I'll now hand it off to Jake.

That concludes our prepared remarks. Additional guidance can be found in the appendix to this presentation and the slides and other information posted on chevron.com. We're now ready to take your questions. We ask that you limit yourself to 1 question. We will do our best to get all of your questions answered.

Thank We'll take our first question from Burch Burtaria with RBC.

Hi. Thanks for taking my question. And firstly, congrats on getting FGP online. It's a big project. So I wanted to ask about some underlying cash flow excluding working capital.

This quarter, at least versus our model, the $530,000,000,0.0 was quite a bit away off what we expected. So could you just walk me through how I should think about any 1 offs in there and help me understand what the sort of underlying basis should be as we think about 2025? Thank you.

Hi, Biraj. Thanks for the question. You're right. Cash flow excluding working capital was impacted by some non recurring and accounting items this past quarter. So let me step you through the big ones.

Maybe the first is we recognized some tax charges and earnings related to our recently completed Canadian asset sale and that was around $150,000,000,0.0 It's important to note that these tax charges are offset in working capital. But if you exclude the working capital when you're looking at cash flow, you're still going to see that tax charge. So that's a big 1. That's the main 1. The second one is we also recorded some charges in the quarter that for earnings we had identified those as special items.

We disclosed them back in Dec. 0 in our capital release. However, we don't make the same adjustments for these items in cash flow. So you're seeing some of that flow through to the bottom line and that's about a $500,000,000 headwind. Beyond those 2 items, we did have some other impacts, the combination of affiliate distributions, some unique commercial activity and that's another $500,000,000 So when you add up the 3 elements, that's about $250,000,000,0.0 to take into consideration for the cash flow this quarter.

So if you got any additional questions on those pieces acknowledging they're a bit unusual this quarter, I mean, Jay can follow-up with you after the call and show you how everything flows through. Thanks.

We'll take our next question from Paul Cheng with Scotiabank.

Thank you. My when we're looking at your next two years, I think you have a really good outlay and I think the investor is comfortable. I think the question has always been talking about longer term, say, by the turn of the decade, I mean, what you're going to do if we put half asset aside. And in here, can you talk about your opportunity set you already had the investment for example? I believe there's a lot of discovery you guys have made in Nigeria, in Angola, but where are we in terms of bringing those that to the fruition and having the project coming on stream, what we need in order for that to become a reality and how big are those opportunities there?

Okay. Paul, thank you. Yes, you're right. What we laid out today is a more detailed look ahead for the next two years. And as you rightly note, there's a lot of significant growth.

We wanted to provide you more confidence and visibility on that free cash flow growth. And frankly, it continues to be de risked every day. Here during the month of Jan. 0 with the whale startup and the FGP startup, 2 significant events that really derisk that. And so that was the primary objective is provide transparency and confidence in that.

And I will set Hess aside, but I'll just acknowledge that we look forward to closing Hess, which will make a strong hand even stronger. If you look out beyond the there are a number of things that are going to contribute to continued free cash flow growth. We've got 2 big chemicals projects that are under construction that will come online '20 07/00 time window. We've got projects in the Eastern Mediterranean in the near term for both tomorrow and Leviathan that will come on towards the end of this year and be ramping into 2026 and beyond. And then we've got further work underway, particularly at Leviathan for yet another expansion in the Eastern Mediterranean.

I would expect Argentina over the back half of this decade to begin to grow at a rate that's stronger than what we've seen thus far, contingent upon continued progress in policy and kind of government stability and macro environment stability there, but the signs there have been encouraging and positive. You mentioned West Africa. There's a number of opportunities. I talked about a discovery on the Nigeria shelf, Sanya Aline Gas, South Endola. We have a number of other very attractive prospects there.

We haven't really gone below 10000 feet to produce yet in that region. We picked up additional acreage offshore Angola, Three new blocks that are undergoing seismic work right now. And we haven't talked a lot about West Africa in recent years given so many other things within our portfolio, but that has a lot of running room left ahead of us. Venezuelan partition zone, huge, huge resource positions. We've been moving thoughtfully for particular reasons in each of those locations, but those present long term opportunities that are captured and can become very attractive.

And we've got a really nice exploration portfolio in West Africa, South America, The U. S. Gulf, Eastern Mediterranean that we expect to provide further resource opportunities. We've got technology that can unlock things. And And of course, a large low decline base that we can sustain with very competitive capital investment and good underlying growth rates.

So we've seen outsized growth here in recent times, right? Last year's growth 7%. We're guiding to a 6% CAGR for the next couple of years. That's probably not a growth rate that anyone would expect to continue, but there are plenty of opportunities out there in the 2027 and beyond Q. We'll sort through and fund the best of those within a tight disciplined capital budget.

We'll take our next question from Neil Mehta with Goldman Sachs.

Yes. Good morning, Mike, Emer and team. Just wanted to better understand the Power business and the announcement from earlier this week with G or Nova. Mike, you've talked a lot about power being a tricky business and Chevron seen that firsthand over the last thirty years at different points, but in wanting to ensure that you're staying true to your core competency. So how do you think about playing in this ecosystem and ensuring that you de risk it so that you can preserve the upside?

Yes. So, Neal, I would tell you, you should think of this as being aligned with what we've said we were looking to do, which is leverage our strengths to advance lower carbon energy solutions to meet demand growth in the world. We operate nearly 5 gigawatts of reliable and at scale power today at Gorgon, at TCO, in refineries. We know how to build and operate large scale power generation and integrate it to a core customer. We know how to operate these assets very, very well.

We've got technical capabilities that are required to do this. In The U. S, we've got a very large natural gas position. And we've been diversifying some of our gas markets with some LNG off tank. And this allows us to backstop power investments for premium customers.

We have said we didn't envision ourselves as a merchant power player and we still don't. Building power to sell into the grid and just generate merchant power is probably not going to deliver returns competitive with our portfolio, but a high reliability at scale offering that's delivered rapidly is something that's in high demand from customers right now. You can see PPAs that have been done for things like recommissioning nuclear facilities that give you some sense of the value that these have for customers. And we've been engaged in discussions with the hyperscalers for a year or more to understand what they're looking for and understand whether or not that's something that we can deliver on. And we think that it really does make good sense for us where we get 7 of GE Vernova's largest turbines with reservation slots for delivery beginning in and then into 2027.

And would expect to be on the front end of what will be a real surge in power demand in this country. And importantly, the last thing I'll say is, I think most of the people on the call are familiar with the challenges that the grid in this country faces right now in ensuring we keep supply of electricity reliable into the economy as it stands today. Doing this off the grid and behind the meter doesn't further tax an already taxed distribution infrastructure and it doesn't put this investment cost into the rate base and drive up costs for consumers as well. So we think this is something that's good for America. American energy abundance can help ensure AI leadership.

It's good for the public. It will create jobs and it will help to keep rates from rising and it's good for the big customers. They're looking for reliable and fast solution to deliver this power and eventually lower carbon options to reduce carbon intensity. Thanks, Neil.

We'll take our next question from Doug Leggate with Wolfe Research.

Thanks. Good morning, guys. Thanks for the opportunity to ask Mike. I did warn Jay come out of Part A and Part B, so it's technically 1 question, but hopefully you can do it. I'll assume he blessed it.

So the incremental disclosure on the bridge to 2027 is really, really helpful, but I wonder it's never enough obviously, but I wonder if you could just benchmark that against what you gave us in February 2023, I guess, under similar conditions. So what is the incremental 10 including the debt payback? What does that look like in 2027 versus I guess what you gave us before? And the Part B is obviously Tengiz is the big story here, but a couple of days ago, I think the Kazakh government were on the wire is actually talking about contract extensions, which is great news for you potentially, but on better terms. I was just wondering if there was any color you could offer on that.

Yes. So, Hemra, why don't you talk about free cash flow for 2027 and then I'll take the concession.

Yes. Thanks, Doug. The short answer is it's aligned with the previous guidance. So we're really reaffirming that guidance. Obviously, since then there's been some puts and takes on the portfolio side.

We've added PDC since our last guidance. We've divested some assets as well, primarily Canada. There's been some price assumptions changed, but we do have growth laid out today out to 2026 and we see growth beyond that. We've got the CP Chem projects that will be online around that time. We'll have some Eastern Med brownfield projects and tomorrow in Leviathan that will come after 2026.

Talked earlier about the Argentina potential there and the power potential. And then in addition to that, we've got the $2,000,000,000 to $3,000,000,000 of structural cost reductions that are underway. So the short answer is it's aligned, but maybe many of the projects that we talked about a few years ago have also been derisked since then. So we'd expect to provide the 2027 outlook later on the year.

Okay. Yes, on the concession, Doug, we're still focused on ramping up safely and reliable. This is a really important milestone and it signals moving to the next phase in the life of that field. And so we're absolutely laser focused on getting that right. Early performance has been very stable and very encouraging.

As we get through the ramp up to see the plant and reservoir performance, we'll then be able to really turn our focus to the future. This is a world class asset. We've got a long proud history in Kazakhstan and with the TCO partnership. And we certainly would like to extend the concession, but it has to work for everyone. It has to work for the Republic, it has to work for our company and our shareholders, it has to be competitive.

These things take time. These are complex contracts, complex negotiations and we'll keep you posted as that evolves over time. Okay. And that was a clever way to get to completely unrelated questions in Doug. So if Jake's blessed that I better have to talk to Jake about the ground rules in the future.

We'll go next to Devin McDermott with Morgan Stanley.

Hey, good morning. Thanks for taking my question and for detailed update today. Mike, I wanted to ask you about policy. There's been in The U. S.

Now a series of energy related executive orders over the past week. I was wondering if you could talk through how this might impact some of your oil and gas operations, especially given the large presence you have in The Gulf and then new energies opportunities. And we think through the flurry of news flow over the last week, there's also been some headlines in your Venezuela license. If you could address that as part of the response, I'd appreciate it. I know a lot to unpack there, but would love your thoughts.

Yes, that is a lot, Devin. Following up with Doug's up. Yes, but they're all related for you. So let me start kind of at the highest level. For years now, I've been calling for a more balanced discussion about energy.

We're finally beginning to see it. We're seeing economic prosperity, energy security and environmental protection all being brought together. And in the past, really the dialogue skewed toward environmental protection and much less toward the others. And I think it's a welcome change to see this reflected. It's a conversation that now recognizes oil and gas are a vital part of the energy mix in this country and in the world, which is a reality that we all need to acknowledge.

And it's good to see an administration that is intent on leveraging and encouraging American energy abundance for the benefit of our economy, for the benefit of our security, for the benefit of our allies and intends to do that in a way that also provides environmental protection. So I think it's a more balanced approach. I think it's a welcome approach. And the specifics still remain to play out. Many of these executive orders direct agencies to review things, to look at actions that can be taken.

And so actual actions, I think, for the most part still remain ahead of us, but I would expect them to encourage more access, for instance, more regularly sales. There is building bipartisan support for permit reform, which is very necessary, not just for our industry, but for many other industries, where it's become so difficult to build things here in The United States. And so I think it's a welcome reset and 1 that our country will benefit from. I can't say much more about anything. Venezuela is an issue that has been around for quite some time during the first Trump administration, during the Biden administration.

And now again, in the second Trump term, sanctions exist on Venezuela. We're the only U. S. Company on the ground there. We're focused on keeping our people safe, ensuring that assets operate in a way that protects the environment and complying with all the laws.

We don't set policy, we comply with laws and we engage with the government to help inform them of the potential impacts of policy choices and we'll continue to do so. Thanks for the question Devin.

We'll take our next question from Stephen Richardson with Evercore ISI.

Hi, good morning. Mike, I was wondering if you could talk about the position of the Permian in the portfolio. You've got this million barrel a day target out there that looks like you're going to hit if you haven't already hit it pretty soon. And I know there was a previous target in the last Analyst Day that was a little higher than that. Can you maybe just talk about the right amount of in the portfolio?

And do we think about the Permian and the DJ? Do we think about it relative to the total is it production? Is it decline curve? How do you think about the right amount of unconventional for the size of the corporation over the next couple of years?

Yes. So let me start, really pleased with our team in the Permian and the performance again in the We delivered 992000 barrels a day in the We were over 1000000 barrels a day in Dec. 0. For the full year, we saw growth of 18% and really, really strong performance across all aspects of the Permian. And we expect to continue to grow even as we've now passed our peak investment and we've started to bring capital investment down.

We still expect to see 9% or 10% production growth in 2025, something a little bit less than that probably in 2026. And we're headed towards a lower rate of growth. And at some point, you can't grow a position like this infinitely. That was the criticism of the industry last decade is companies only focused on growing and they never focused on generating free cash flow and returning to shareholders. And that's always been our plan to do just that.

So we'll have an asset that will produce something over a million barrels a day for many, many years into the future. And as we can maintain that with a lower rate of capital investment than we've required to get to where we are, that really opens up the free cash flow off of that asset. So, we are very pleased with that. We've got 400000 barrels a day give or take now in the DJ Basin, which is kind of in that plateau phase where we can draw free cash flow off of that. We close Hess, there's another couple of hundred thousand barrels a day in the Bakken.

You bring Argentina in and now you're talking 1700000.0 barrels a day or so. And this year we produced 330,000,0.0 in change. And so it's kind of 50% of the portfolio. And the nice thing about that is at very modest CapEx, you can hold that production flat for quite some time and use that as a big cash generator. And so that is the intent.

There's always the prospect that we see technology breakthroughs. We're working on improved recoveries that if economic could open a new phase of growth. And I don't want to predict that, but I certainly wouldn't want to rule that out. And so as we continue to get better and better at this and develop technologies to improve recoveries, we can extend the plateau, we can raise, we could raise plateaus, But this is a highly economic asset that is a core position that will generate production and cash long into the future. And of course, in the Permian, the royalty advantage that we have is kind of icing on top of that cake.

And so that's how we think about it. I can't give you a magic formula, a percentage, but it's like I said, it's approaching 50% of our overall production, which is a significant piece. Thanks, Steve.

We'll take our next question from Jason Gabelman with TD Cowen.

Hey, thanks for taking my questions. I wanted to ask about the TCO distribution and I appreciate the detail between and this year. The $5,000,000,000 and $6,000,000,000 for $25,000,000,000 and $26,000,000,000 billion dollars is that similar to the $4,000,000,000 and $5,000,000,000 respectively that you guided to previously just at a higher price deck? And further to the distribution, it looks like based on TCO's own filings that their operating expenses from 2022 to 2023 have gone up about $5 a barrel. I'm not sure if that's related to the Russian war or something else, but I wonder if that increase in OpEx is contemplated in your free cash flow guidance for TCO or if that's something you expect to come back down?

Jason, yes, thanks. I can talk to that. The free cash flow inflection that's coming with which is actually upon us now that the asset is started up. So we shared in the slide $5,000,000,000 for 2025 and $6,000,000,000 for 2026. What's contributing there is obviously the production, but also the affiliate CapEx is coming down.

So with the project completing, and the affiliate CapEx is reducing significantly and so that's resulted in the free cash flow. We also anticipate that as the plant gets ShoeGuide and the safe and reliable start up completes that they'll be focused as well on operational OpEx and optimizing that given the new base business of 1000000 barrels a day that they will have. So that can move around a little bit during the year, but generally, we have OpEx coming down there too. So those are 2 things that are contributing to the free cash flow in addition to the production.

We'll take our next question from Alastair Sim with Citi.

Thanks, Joaquin. I just wanted to ask about in Bolivia. If you've got a good sense of why that first exploration well failed and whether you've seen enough to make you want to go again in a different location?

Yes, Alistair, the first well was the first well. And in exploration, you learn that oftentimes particularly in a new relatively new basin, you need a lot of information. So each well is actually what you're targeting hydrocarbons. The real objective is to learn and a failure to learn would be a failure of the well, a failure to find oil and gas happens more often than not. And so, we have a very large position on 2 different blocks in the Orange and the Wallace Basins.

As people are well aware, others have found some encouraging things on their blocks. And so there's a working petroleum system that exists there. And we're very pleased with the information that we learned. And it does inform future activity. And it helps us understand the geologic history of that part of the basin, which is fundamental to understanding how the depositional of structures and geology evolved.

And we'll use that to inform future activity. We are it's not enough if I heard your question correctly, it's not enough to say we're not interested. It's enough to say we continue to be interested. The other thing I'll just tell you is that the well went down very fast. The cost was much lower than some of the other wells we've seen in that area.

And so I think the other encouraging thing that we learned is that the drilling environment there is 1 that we can execute very well in and keep future exploration wells in a very cost effective manner. So we'll talk to you more as we evaluate the next steps in both of those basins and continue to evolve our program.

We'll take our next question from Betty Jiang with Barclays.

Chevron (CVX) Q4 2024 Earnings Call Transcript

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