Chevron to update production targets during investor day

A year ago, the United State's second largest oil producer set a goal of increasing its oil and gas production by about 3% annually through 2026, taking output to "well over" 3.5 million barrels a day by pumping more from the top US shale basin and in Kazakhstan.

Investors will listen for an update on Chevron's renewable fuels business, carbon emissions targets, and plans for developing its natural gas discoveries off the coast of Israel.

Sharply higher inflation and supply chain restrictions have slowed growth for many companies operating in the Permian Basin, the top US shale region. And in Kazakhstan, which accounts for 14% of Chevron's oil and gas reserves, political risks from sanctioned Russia have climbed in the last year.

"It is plausible that near term growth slows," Biraj Borkhataria, associate director of Europe Research at RBC Capital Markets, said in a note to clients this month, adding that he expects Chevron "to maintain its longer term volume guidance."

Chevron last year posted record earnings that allowed it to authorize the most ambitious shareholder payout among Western producers. In January, it tripled its budget for share buybacks to $75 billion with no fixed expiration date. Investors will be looking for any updates on the pace of the repurchases, currently at up to $15 billion per year, analysts said.

The company's expansion of operations in Venezuela will also be in the spotlight. Chevron has said it expects to post a modest profit from Venezuelan operations. This month, Chevron has exported five oil cargos from the South American producer, after winning US approvals to expand operations.

The company had said it planned to keep capital spending this year at $17 billion, at the higher end of its annual guidance.