Chevron CEO Sees 'No Sign' Of Recession At This Point, Predicts Up To $10 billion In Free Cash Flow By 2026

The CEO of Chevron Corporation CVX, Mike Wirth, recently discussed the current dynamics of the oil industry, addressing the volatility of oil prices, capital expenditure strategies, and geopolitical challenges.

What Happened: Wirth attributed the recent dip in West Texas Intermediate (WTI) crude oil prices, nearing $60 per barrel, to expected demand slowdowns and increased supply. He cited macroeconomic uncertainties, particularly tariff and trade tensions, as the primary reasons for concerns about reduced global demand, in a recent interview with CNBC.

When asked about recession, the Chevron CEO stated, “..there’s no sign that we see at this point that we’re in or close to a recession.” However, he acknowledged slowing growth and volatility.

Despite the market’s volatility, Wirth emphasized Chevron’s strong balance sheet and disciplined approach to capital expenditure. The company has proactively cut its capital expenditure by $1 billion for 2025 and announced cost reductions of $2-3 billion over the next two years.

The CEO also stated at $70 per barrel crude oil price, they expect $10 billion of incremental free cash flow growth in 2025-26, while at $60 per barrel, the free cash flow expectation is at $9 billion.

On tariffs, Wirth downplayed their direct impact on Chevron, acknowledging potential indirect effects through macroeconomic shifts and global trade dynamics. He also highlighted the administration’s supportive energy policies, which recognize the U.S.’s abundant energy resources as a driver of economic prosperity, energy security, and national security.

SEE ALSO: Trump Pledges ‘Substantial’ Cut In China Tariffs, But Refuses To Make It ‘Zero:’ ‘If They Don’t Make A Deal, We Will Set The Deal’ – Benzinga

Why It Matters: Wirth’s comments come in the wake of Chevron’s ongoing negotiations with the Trump administration over its operations in Venezuela. Wirth has been engaging with Trump's cabinet members, including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, seeking an extension to wind down the company's operations in the country. In Tuesday’s interview, he described the situation as complex and noted that Chevron is engaging with the U.S. Department of Treasury to advocate for maintaining its presence.

Furthermore, the impact of trade tensions between the U.S. and China on the oil industry cannot be overlooked. Recent reports indicated that Chinese refiners have cut their U.S. oil imports by approximately 90% since 2023 due to escalating trade tensions, turning instead to Canadian crude.

Chevron holds a value rating of 80.91% and a growth rating of 35.05%, according to Benzinga's Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.