Bloomberg Talks Chevron CEO Mike Wirth Talks Oil Prices, Quarter Report
May 2, 2025
Mike Wirth, CEO of Chevron, shares insights on the company's recent quarter that showcased a 6% earnings increase and robust shareholder returns. He delves into the complexities of oil price volatility and the strategies needed for long-term investment in deep water projects. Wirth also discusses the upcoming arbitration related to the Hess acquisition, expressing confidence in its outcome. Additionally, he highlights the Tangiz oil field's production capabilities and Chevron's strong financial position amidst fluctuating market conditions.
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Chevron's Gulf Growth Drives Earnings
- Chevron achieved a strong quarter with 6% earnings growth despite flat oil prices.
- New Gulf of America projects significantly raised production forecasts by 2026.
Long-Term Price View Guides Investments
- Chevron bases long-term investments on multi-decade oil prices forecasts, not daily price volatility.
- This approach stabilizes capital decisions for projects with long lead times like deepwater drilling.
Chevron's Break-Even Price Is Lower
- Chevron expects their break-even oil price to cover capex and dividends to fall to the low $50s next year.
- This contrasts with external estimates claiming Chevron's break-even is near $95 per barrel.