US oil group Chevron presented the outlines of its long-term strategy in New York during its Investor Day, marking a key step following the $55bn acquisition of Hess. Chief Executive Officer Mike Wirth stated that the transaction opens a new growth cycle, supported by increasing production and a financial policy centred on cash generation and shareholder returns.
A decisive integration for market momentum
The acquisition of Hess, completed in July after a favourable arbitration ruling, serves as a strategic growth lever. It provides Chevron with a 30% stake in the Stabroek Block in Guyana, a major asset developed with Exxon Mobil, estimated at over 11 billion barrels of oil equivalent. This portfolio strengthens the group’s international oil and gas presence while enhancing its financial profile with institutional investors.
In a context of cautious capital expenditure, Chevron confirmed it would maintain production at one million barrels per day in the Permian Basin. The now-operational expansion of the Tengiz oil field in Kazakhstan supports this production stability. These developments allow the company to focus its resources on value creation and disciplined capital allocation.
Investors focused on capital management
According to David Byrns, portfolio manager at American Century Investments, Chevron has “streamlined its organisation” to balance future exploration investment with preserving financial returns for shareholders. This approach aims to ensure a stable growth path without compromising dividends or share buyback programmes — elements closely watched by fund managers.
The group has also begun discussions with Kazakh authorities to extend the Tengiz field contract beyond 2033. Mike Wirth indicated that the talks are “off to a good start,” while noting that they remain in the early stages. A contract extension could secure Chevron’s long-term revenue visibility.
Diversification into energy infrastructure
Chevron is exploring new opportunities in natural gas-powered electricity generation for artificial intelligence (AI) data centres. Talks are underway with several tech companies to assess the feasibility of such infrastructure. While this direction presents an emerging opportunity, some investors remain cautious. Priyal Maniar, analyst at T. Rowe Price, called for more clarity on the financial impact of this strategy on the group’s overall profile.
