Chevron announces US$16 billion 2024 CAPEX budget

Upstream spending in 2024 is expected to be about US$14 billion. Of this planned expenditure, two thirds is allocated to the United States, including approximately US$6.5 billion to develop Chevron’s US shale and tight portfolio, of which around US$5 billion is planned for Permian Basin development. About 25% of US upstream CAPEX is planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.

Downstream CAPEX is expected to be roughly US$1.5 billion, with 80% allocated to the United States. Corporate and other CAPEX is projected to be about US$0.5 billion.

Included in the upstream and downstream budgets is approximately US$2 billion in lower carbon CAPEX to lower the carbon intensity of traditional operations and grow new energy business lines. Chevron’s Geismar renewable diesel expansion project is expected to start-up in 2024.

Nearly half of affiliate CAPEX is planned for Tengizchevroil’s FGP / WPMP project in Kazakhstan and about a third is planned for Chevron Phillips Chemical Company, including the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project. WPMP field conversion is forecasted to begin start-up in the first half of 2024.

“We’re maintaining capital discipline in both traditional and new energies,” said Chevron Chairman and CEO Mike Wirth. “These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders.”

With the acquisition of PDC Energy, Chevron announced an annual CAPEX guidance range of US$14 to US$16 billion through 2027. On 23 October 2023, Chevron announced that it had entered into an agreement to acquire Hess Corporation. This acquisition is expected to close in the first half of 2024, subject to Hess shareholder approval, regulatory approvals and other customary closing conditions. Following closing of the acquisition, Chevron’s annual CAPEX budget is expected to be between US$19 and US$22 billion.

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