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Speaking of Chevron, we're taking a look at shares right now, lower by about one point four percent after a first quarter report that in lists called quote MESSI let's bring in Bloomberg Surveillance co host Anri hor Dern, who is joining us with the fo of Chevron right now.
Thanks so much. Yeah, Chevron Blue past all of these expectations for earnings per share, but they're obviously in the thick of it when it comes to the conflict in the Middle East and the volatility we're seeing in the energy market. I'm so pleased to be joined now by the CFO Emar Bonner. Thank you so much for joining us. So obviously earnings per share Blue past all of these expectations,
but it's a volatile time right now. How is the company weathering what we're seeing in terms of the conflict in the Middle East.
Yeah, well, thanks for having me on, Mariette. It was you know, EPs beat that we posted this morning, and behind that is a very resilient portfolio with many operational highlights. You know, starting here in the US, we had our third consecutive quarter of production over two million barrels of oil equivalent per day. We had record refinery runs in March, and our diversified portfolio created high margin capture and demonstrate
a strong utilization. So while we're managing all the volatility and all the dynamics in the market, our portfolio is incredibly, incredibly resilient. Also, in the Middle East, we have relatively less exposure than some others. We have a few operations there and they're all running, but it's a very small
percentage of our production, less than five percent. So what we're really doing is we're optimizing all the levers that we have, our equity, cruds, our refineries, and we're bringing supply to market and to our customers.
It does see some investors were disappointed that the buyback was not increased, and see analyst said, it's really just a matter of when not if. Is that an accurate assessment.
Well, we guide our ranges around capex, around buybacks. We guide with a range of prices in mind. So probably the comment that came from the analyst talks to the fact that analysts know that we operate within within our range and we're not changing where we're within that range right now when it comes to buyback Because with eight weeks of a conflict, we really need to see more in terms of an outlook for oil prices in particular that are structurally different than the range of prices that
we used when we put our plans together. So that's probably what the analyst is talking about. We guided to ten to twenty billion of buybacks, and we guided with a range. We'll use the range when we believe conditions warrant it.
Well, obviously you're going to be looking at all the scenarios that could play out given the uncertainty with what is going on in the straight of her moves. What is Chevron looking at in terms of say the straight was shut for another month or two months?
Well, I mean we're not looking with that level of definition around the timeline. I mean, when we look at our plans, we plan for the long term, so we don't typically look out a month and then make adjustments in our actions in the business. Because our business is so long term. We look through the cycles. We make decisions with ranges in mind, and right now we're not
changing anything that we're doing. We're growing seven to ten percent this year from a production perspective, and so what we're focused on is delivering on those plans, delivering them with cost and capital discipline. We're not moving things around with an outlook that's one month ahead.
If we do have one hundred dollars oil though for the foreseeable future, would that offer scope to say, increase the buyback later this year.
Well, at the prices of those ranges, we would obviously go back look at our plans. I mean, right now we've planned for high prices and low prices, and so you know, the duration of the price is important and important to us, so we typically have you know, a wide range. So nothing right now that would be temporary in terms of high oid prices. We change what we're what we're doing on Marie.
Imer, I know you've been looking at the massive dislocation of what is actually going on in the physical market and the reality versus what we see on our screens every single day. But we have seen an uptick and crude over the past few days in terms of WTI really holding on to triple digits. Do you think that the financial markets are finally catching up to what you see every day in the physical market.
Well, it's very hard. It's really hard to deno and to predict that and so you know what we're seeing in the physical markets, what we're what we're focused on is ensuring that we're operating safely and reliably. And it's it's hard to make a prediction on It's very hard for physical markets and future markets to line up always. It's it's very difficult. So what we're focused on is just delivering our plan.
When you look at how the market is supplied right now, between supply and demand, how quickly do you see the world just driving down inventories.
Well, a lot of the inventory and spur capacity has been depleted already, Anne Marie. You know, before the conflict a few months ago, we had a certain certain buffer in the system, and so there's there's very little of the buffer left. So the spur capacity, the inventories that we would rely on to buffer some of the sup of the constraints, it is really under pressure right now.
And so you know, that's why what we're focused on in Chevron is adjusting the flows of our of our products to customers because a number of those routes are not available anymore. The street of Hermus obviously still shut in, So we pivot and we adjust, and this is where the resilience of the portfolio, both the upstream assets and the refining footprint really has shown in the first quarter of the resilience.
So we're seeing that large out of the United States. With exports reaching a record high this week. The US seems to be filling some of that gap with what is going on with the closure of the Strait of removes. How long do you think that can actually continue.
Well, the US is more resilient, of course, you know, very strong domestic production, and we've got many assets in the US and more infantries than you know than in other parts of the world. There's more of a pinch being felt in places like Europe and Africa and Asia. So you know, from a US perspective, I think they're playing the role that they can play with exporting as much of their production, but they're also moving production around the country and that's one of the things that we
are doing. Given that we had some waivers from the administration, that's been really helpful in helping us take some of our products from the Gulf Coast, for example, to the West Coast to relieve some of that pressure. So I think the US is contributing in multiple ways here at home, but also from an export perspective.
And how is Chevron contributing when it comes to maybe advice you're offering the administration. I know CEO Mike Worth was at the White House this week a number of under individuals briefing the President and members of his team. What's the relationship been like?
Well, first, I would say that, you know, we engage with governments all around the world, so where we have operations, where we have employees, good government relations is very important for us, and the current administration here at home in the US is no different. So you know, we've had very regular communications with the administration about the business and so you know, we meet regularly and share perspectives, and we believe that's very healthy.
I know there's a close relationship as well, working relationship. When it comes to Venezuela. I went with Secretary Wright to Caracas. I actually visited some of Chevron's facilities in Venezuela. On the call earlier today, you said venezuel Wall likely repay the one and a half billion dollars in debt they owe Chevron by twenty twenty seven. Imer at that point, would Chevron be willing to invest more into Venezuela.
Well, i'mrie you were there and you saw some of our operations. We've been in the country for over one hundred years. We are the advantage incumbent in the country. We have lots of history working with the Venezuelans in a very productive way. We have grown production from fifty thousand barrels a day to two hundred and fifty thousand barrels a day over the course of the last few years,
and we intend to grow production even even further. We have a model, a self funding model that has enabled the development of the assets and the improvement of the assets and the growth that I just referenced, and pay off our debt and so so you know that has been paid off in a very readable way. And beyond that, you know, what we look for is the competitives of the physical terms in Venezuela. And there's a lot of
potential in the country. We've obviously stayed there for one hundred years for a reason, and so we would look for, you know, steps, further steps, maybe from the steps that have already been taken, which are positive, but further steps just to improve the physical competitiveness of Venezuela. And then We'll look at all opportunities like we do around the world from with a competitive lens