Anthony Schiavone

There's a lot of noise in their quarterly results, but this does seem to be that first step towards eventually improving free cash flow, improving operating margins, and improving return on invested capital, and just becoming more efficient.

As a shareholder, I liked them.

I thought it was a strong quarter for Chevron, despite lower commodity prices.

Production of 4.1 million barrels of oil equivalent per day was a record quarter for the company, and 21% higher than last year.

Adjusted free cash flow came in at $7 billion.

Chevron returned $6 billion to shareholders in the quarter through dividends and buybacks.

I thought this was pretty cool.

Chevron mentioned that they have returned $78 billion through dividends and buybacks over just the last three years.

That's a massive amount of capital relative to what is roughly a $300 billion company today.

I think that's really the thesis for traditional energy companies.

Whereas in the past, oil and gas companies just wanted to drill and produce as much as possible,

Now, they're much more focused on returns on capital and returns of capital through dividends and buybacks.

Chevron's really been at the forefront of the industry shift in capital allocation at that standpoint.

Yeah.

And I think that should continue, too.

They actually just held their analyst day, I think, last week.

And they plan to return between 10, I believe the number is between $10 and $20 billion annually through 2030.

So they're still returning a lot of cash to shareholders, even as commodity prices have come down.

I am buying it.

If you look at the dividend yield, it's about 7% today.