- Organic capex of $14 billion; affiliate capex of $3
billion
- Includes $2 billion of lower carbon capex
Chevron Corporation today announced 2023 organic capital
expenditure budgets of $14 billion for consolidated subsidiaries
(capex) and $3 billion for equity affiliates (affiliate capex),
which total near the high end of the company’s guidance range.
The company’s 2023 capex budget is up more than 25% from 2022
expected spend, excluding acquisitions. Affiliate capex in 2023 is
down modestly from 2022 expected spend. These budgets support
Chevron’s objective to safely deliver higher returns and lower
carbon and include approximately $2 billion in lower carbon capex,
more than double the 2022 budget.
“We’re maintaining capital discipline while investing to grow
both traditional and new energy supplies,” said Chevron Chairman
and CEO Mike Wirth. “Our 2023 capex budgets are consistent with our
long-term plans to safely deliver higher returns and lower
carbon.”
Chevron’s 2023 capex budget assumes cost inflation that averages
in the mid-single digits with certain areas higher, such as the
Permian Basin that assumes low double-digit cost inflation.
“Our capex budgets remain in line with prior guidance despite
inflation,” Wirth continued. “We’re winning back investors with
capital efficient growth, a strong balance sheet, and more cash
returned to shareholders.”
Details of Chevron’s 2023 organic capex
and affiliate capex budgets(1) include:
$
Billions
U.S. Upstream
8.0
International Upstream
3.5
Upstream Capex
11.5
U.S. Downstream
1.5
International Downstream
0.3
Downstream Capex
1.9
Other
0.6
Capex
14.0
Upstream
1.9
Downstream
1.1
Affiliate Capex
2.9
(1) Numbers may not sum due to
rounding.
Capex
Upstream capex includes more than $4 billion for Permian Basin
development and roughly $2 billion for other shale & tight
assets. More than 20% of upstream capex is for projects in the Gulf
of Mexico. Lower carbon capex across all segments totals around $2
billion, including $0.5 billion to lower the carbon intensity of
Chevron’s traditional operations and about $1 billion to increase
renewable fuels production capacity.
Affiliate Capex
Nearly half of affiliate capex is for Tengizchevroil’s FGP /
WPMP Project in Kazakhstan and about a third is for Chevron
Phillips Chemical Company, including the U.S. Gulf Coast II
petrochemical project.
Chevron is one of the world’s leading integrated energy
companies. We believe affordable, reliable and ever-cleaner energy
is essential to achieving a more prosperous and sustainable world.
Chevron produces crude oil and natural gas; manufactures
transportation fuels, lubricants, petrochemicals and additives; and
develops technologies that enhance our business and the industry.
We are focused on lowering the carbon intensity in our operations
and growing lower carbon businesses along with our traditional
business lines. More information about Chevron is available at
www.chevron.com.
NOTICE
As used in this news release, the term “Chevron” and such terms
as “the company,” “the corporation,” “our,” “we,” “us” and “its”
may refer to Chevron Corporation, one or more of its consolidated
subsidiaries, or to all of them taken as a whole. All of these
terms are used for convenience only and are not intended as a
precise description of any of the separate companies, each of which
manages its own affairs.
Please visit Chevron’s website and Investor Relations page at
www.chevron.com and www.chevron.com/investors, LinkedIn:
www.linkedin.com/company/chevron, Twitter: @Chevron, Facebook:
www.facebook.com/chevron, and Instagram: www.instagram.com/chevron,
where Chevron often discloses important information about the
company, its business, and its results of operations.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This news release contains forward-looking statements relating
to Chevron’s operations and energy transition plans that are based
on management's current expectations, estimates and projections
about the petroleum, chemicals and other energy-related industries.
Words or phrases such as “anticipates,” “expects,” “intends,”
“plans,” “targets,” “advances,” “commits,” “drives,” “aims,”
“forecasts,” “projects,” “believes,” “approaches,” “seeks,”
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“could,” “should,” “will,” “budgets,” “outlook,” “trends,”
“guidance,” “focus,” “on track,” “goals,” “objectives,”
“strategies,” “opportunities,” “poised,” “potential,” “ambitions,”
“aspires” and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties
and other factors, many of which are beyond the company’s control
and are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. The reader should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this news release. Unless legally required,
Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices and demand for the
company’s products, and production curtailments due to market
conditions; crude oil production quotas or other actions that might
be imposed by the Organization of Petroleum Exporting Countries and
other producing countries; technological advancements; changes to
government policies in the countries in which the company operates;
public health crises, such as pandemics (including coronavirus
(COVID-19)) and epidemics, and any related government policies and
actions; disruptions in the company’s global supply chain,
including supply chain constraints and escalation of the cost of
goods and services; changing economic, regulatory and political
environments in the various countries in which the company
operates; general domestic and international economic, market and
political conditions, including the military conflict between
Russia and Ukraine and the global response to such conflict;
changing refining, marketing and chemicals margins; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; development of large carbon capture
and offset markets; the results of operations and financial
condition of the company’s suppliers, vendors, partners and equity
affiliates, particularly during the COVID-19 pandemic; the
inability or failure of the company’s joint-venture partners to
fund their share of operations and development activities; the
potential failure to achieve expected net production from existing
and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of
planned projects; the potential disruption or interruption of the
company’s operations due to war, accidents, political events, civil
unrest, severe weather, cyber threats, terrorist acts, or other
natural or human causes beyond the company’s control; the potential
liability for remedial actions or assessments under existing or
future environmental regulations and litigation; significant
operational, investment or product changes undertaken or required
by existing or future environmental statutes and regulations,
including international agreements and national or regional
legislation and regulatory measures to limit or reduce greenhouse
gas emissions; the potential liability resulting from pending or
future litigation; the company’s future acquisitions or
dispositions of assets or shares or the delay or failure of such
transactions to close based on required closing conditions; the
potential for gains and losses from asset dispositions or
impairments; government mandated sales, divestitures,
recapitalizations, taxes and tax audits, tariffs, sanctions,
changes in fiscal terms or restrictions on scope of company
operations; foreign currency movements compared with the U.S.
dollar; higher inflation and related impacts; material reductions
in corporate liquidity and access to debt markets; the receipt of
required Board authorizations to implement capital allocation
strategies, including future stock repurchase programs and dividend
payments; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies;
the company’s ability to identify and mitigate the risks and
hazards inherent in operating in the global energy industry; and
the factors set forth under the heading “Risk Factors” on pages 20
through 25 of the company’s 2021 Annual Report on Form 10-K and in
subsequent filings with the U.S. Securities and Exchange
Commission. Other unpredictable or unknown factors not discussed in
this news release could also have material adverse effects on
forward-looking statements.
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Randy Stuart -- +1 713-283-8609
Chevron (NYSE:CVX)
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