Pierre Breber: And I’ll just add some comments on affiliate dividends. So we’ve given a guide on fourth quarter affiliate dividends, which falls short of the full-year guide that we did at the start of the year. That shortfall is not from TCO, that’s from CPChem, Chevron Phillips Chemical Company, on lower petchem margins. It’s also from Angola LNG on lower TTF prices than we had assumed. We’ve also had some of the Angola LNG cash has come back to us as return to capital. In terms of TCO, we had a $600 million dividend Chevron share in the second quarter. We can’t get ahead of the TCO Board on the fourth quarter. But 90% or so of the fourth quarter guide is related TCO. I’ll remind you last year that TCO dividend was $1.6 billion Chevron share.
All these numbers are before the withholding tax. So we’ll see a pretty significant increase in the total year TCO dividend. Now some of that was the – getting some of the excess cash off the balance sheet like we were talking about. But if you go back to the period prior to the start of this construction, so the period into 2015, we’re seeing dividends now – or this year’s dividend will be similar to what we saw from that time period. So the inflection is happening after five years of either not receiving dividends or, in fact, putting cash out, essentially having negative free cash flow. So we know production is going to be down next year. We showed that. So you’d expect dividends to reflect that a little bit. We have a little bit of increase in CapEx. And then we’ll be heading to this more than $4 billion in 2025.
And all of that is – that guidance is at $60. So we’re seeing some positive news in terms of the cash flow coming out. Clearly disappointing news on the revised schedule, but we’re going to work hard to deliver it in the front end of the range. Thanks, Paul.
Paul Cheng: Thank you.
Operator: We’ll go next to John Royall with JPMorgan.
John Royall: Hi. Good morning. Thanks for my question. So I have a follow-up on the Permian ex PDC. You were down 2% in 3Q, including the non-op piece, and really helpful color there from Mike on Biraj’s question. But just – it does leave a pretty big jump to hit guidance in 4Q, around 10%, if I calculate it right. So are you sticking with that 770,000 guide for the legacy piece? And if not, is there a good way to think about 4Q production in general?
Michael Wirth: Yes, John, we’re not changing the guidance. Overall on production, excluding PDC, we expect to be the lower end of overall guidance. Permian production is expected to ramp up in the fourth quarter. Full year production expected around 770,000, 780,000 or so if you include PDC. And so yes, the guidance is still intact for the Permian. Go ahead, Pierre.
Pierre Breber: Yes. Mike talked about the 2% shortfall on non-op, which averages to about 0.5%. He talked about also some of these surface constraints. So we have worked to overcome the shortfall we saw in non-op in the third quarter to deliver that. So no change in guidance. But clearly, we have a little more work to do in the fourth quarter to achieve it. We do expect though fourth quarter, more POPs and more production, in line with the plan that we laid out earlier this year.
John Royall: Thank you.
Operator: We’ll go next to Doug Leggate with Bank of America.
Douglas Leggate: Thanks. Good morning everyone. Mike, I know you’ve been traveling around, so thank you for making the time for us this morning. I want to try and defend you a little bit here this morning. Because if you look at the remaining life of Tengiz, about half of that value has been taken out of your stock this morning. I can’t imagine you’re happy about announcing another series of challenges. So my question is this, at a philosophical level, how would you characterize what you and your management team and the organization are doing to avoid these kind of issues on major projects going forward? You’ve got a lot of things in the queue through 2027. Why should the market be comfortable that you can execute on that timeline with what you have in your portfolio?
