Following are excerpts from the unofficial transcript of a CNBC interview with Chevron Corporation (NYSE:CVX) CEO Michael Wirth on CNBC’s “Squawk Box” (M-F 6AM – 9AM ET) today, Friday, February 3rd for AT&T Pebble Beach Pro-Am in Pebble Beach, California.
Chevron CEO Mike Wirth On Pushback From White House, Capital Expenditure
Q4 2022 hedge fund letters, conferences and more
All references must be sourced to CNBC.
Wirth On Financial Priorities
We actually are doing exactly what the White House is calling for. We’re staying consistent with our financial priorities and financial framework that we’ve long had for decades which is first to prioritize the dividend. We increased it 6% the 36th year in a row for dividend increases.
We increased organic capital spending this year 30% above what it was last year, keep a very strong balance sheet and when we have cash excess for those needs, we return it to the owners of the company.
Wirth On Repurchase Program
We had a prior repurchase program that was authorized five years ago when we were repurchasing at about $5 billion a year and the program was a $25 billion program. We’re a stronger company this year. We’re repurchasing at $15 billion a year, a five-year execution on that plan would be $75 billion dollars.
Wirth On Production Growth
We’re growing at 3 to 4% production growth over the next several years. The demand for oil and gas is growing about 1% so we’re actually growing at a rate much faster than market demand.
Wirth On China
We’re starting to see signs out of China that there’s more activity that will drive demand. So you’re seeing a significant increase in airline flights being scheduled, so these are forward flights. We’re seeing road traffic and road congestion. There’s a number of different ways you measure this use of public transportation, people are moving around.
Supply chains are restarting, businesses are restarting. I spoke to people in Davos that run businesses in China that are ramping up production so we do see indicators that the Chinese economy is beginning to grow and beginning to come out of the restrictions that it’s been under.
