Chevron is restoring their million-barrel Permian target only a year after it disappeared from the company’s guidance as Covid-19 crashed energy markets.
Chevron plans to double returns on capital employed and expand free cash flow by 10% a year, more than twice the cash-flow growth rate promised by Exxon Mobil Corp. last week. Chevron’s dividend isn’t imperiled even if crude falls to $40.
“This, in our view, confirms CVX’s superior investment case relative to XOM,” Giacomo Romeo, an analyst at Jefferies International Ltd., said in a note to clients.
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