Chevron is now firing on all cylinders. Production and cash flow growth continue to build and there is more to come. This has provided Chevron with the confidence to initiate a US$3 billion buyback programme. We think this is sustainable under most pricing scenarios and calculate the company can still achieve cash flow neutrality at US$50/bbl. This provides an important safety net if oil prices retreat and also allows for further debt repayment if current prices are sustained.