Chevron posts bumper cash flow after oil rally meets cuts

Chevron posts bumper cash flow after oil rally meets cuts

Chevron generated the most free cash flow since the pandemic emerged as economies clawing their way out of more than a year of lockdowns and paralysis burn more fuel.

The oil, natural gas and refining titan posted $3.4 billion in first-quarter cash flow on Friday, more than enough to cover its recently increased dividend, which is a closely watched metric for the oil supermajors. A key driver of the bonanza was a 43% spending cut as Chevron retreats from costly mega-projects to focus on less-risky endeavors such as shale drilling.

The shares dropped 2% in pre-market trading. Despite the cash-flow increase, the company said it's waiting for market conditions to improve before reinstating share buybacks.