Copyright Benzinga
J.P. Morgan analyst Arun Jayaram entered Chevron Corp.‘s (NYSE:CVX) Investor Day expecting an emphasis on resilience across the oil, gas, and LNG markets, as well as a renewed commitment to shareholder returns and disciplined spending. Instead, Chevron offered what Jayaram called financially stronger than modeled but detail-light guidance. The energy giant forecast 2–3% annual output growth through 2030, higher-cost synergies from its Hess integration, and its first AI-driven data center in West Texas, with final investment approval targeted for early 2026. The analyst noted that investors seeking a transformative "power-deal" reveal may have found the event muted, but acknowledged progress toward that large-scale project. Related: Chevron Maps 2030 Path With Steady Cash, Smarter Energy, Stronger Returns Chevron cut long-term capital spending to $18–$21 billion annually, aimed for $1–2 billion in yearly asset sales, and expects $3–4 billion in structural cost cuts by 2027. The company forecasts annual earnings growth of over 10% based on a Brent price of $70 per barrel and expects to maintain a cash-flow breakeven below $50 per barrel between 2026 and 2030. Also Read: Chevron’s Big Projects Start Paying Off And There’s More Ahead, Analyst Says Jayaram's refreshed model indicates roughly 11% free-cash-flow growth through 2030 — consistent with Chevron's outlook — although he sees capital expenditures running slightly higher and production ramping slower than management's targets. He characterized the event as more steady progress than a show-stopping reveal. Still, he said the improved financial metrics reinforce Chevron's position as one of the few integrated energy majors that maintain discipline amid volatility in the energy transition. Price Action: CVX shares are trading 2.48% lower at $152.29 at the last check on Wednesday. Read Next: Loar Cashes In On Soaring Jet Orders And Global Travel Surge Photo: Shutterstock
