Chevron Halts Share Buybacks, Slashes Permian on Oil Rout
- Permian cuts will lower output there by 125,000 barrels a day
- CEO Mike Wirth says protecting dividend is his top priority
This article is for subscribers only.
Chevron Corp. became the latest major oil company to take an ax to its budget after halting its $5 billion-a-year share buyback and halving spending in the Permian Basin, which means a large decrease in projected output from America’s biggest shale region.
The California-based oil giant said Tuesday it’s lowering projected 2020 capital spending by 20%, or $4 billion. The Permian will account for the largest single element of that reduction, translating into 125,000 fewer barrels of oil equivalent per day than previously forecast, a quantity equal to about 2.5% of the basin’s total current production.