Despite lower oil and gas prices, 2023 was one of Chevron's (NYSE: CVX) best-ever years. The global oil and gas behemoth pumped a record 3.1 million barrels of oil equivalent per day (BOE/d) last year. On top of that, it sent shareholders a record $26 billion in cash via dividends and share repurchases.

The company could smash both records this year. Here's a look at what's fueling the oil stock's strong operational performance and ability to return more cash to investors.

Chevron has focused on investing in its highest-return and lowest-cost opportunities over the past few years. That strategy paid big dividends last year. The oil giant was able to produce strong earnings and free cash flow despite significantly lower oil and gas prices. For the year, Chevron produced nearly $25 billion of adjusted earnings and over $35 billion in cash flow from operations.

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Source Fool.com