Chevron sets $16 billion 2024 capital expenditure budget

Dec. 7, 2023
Chevron disclosed an expected 2024 organic capital expenditure for consolidated subsidiaries, of $15.5-16.5 billion.

Chevron Corp. disclosed an expected 2024 organic capital expenditure for consolidated subsidiaries (capex), of $15.5-16.5 billion. Additionally, the company has an affiliate capital expenditure (affiliate capex) budget of about $3 billion for 2024. 

Upstream spending in 2024 is expected to be about $14 billion. Of this planned expenditure, two-thirds are allocated to the US, including about $6.5 billion earmarked for development of Chevron's US shale and tight portfolio, of which around $5 billion is planned for Permian basin development. About 25% of US upstream capital expenditure is designated for projects in the Gulf of Mexico, including the Anchor project, expected to begin oil production in 2024.

Downstream capex is expected to be roughly $1.5 billion, with 80% allocated to the US. Corporate and other capex is projected to be about $500 million.

Notably, included in the upstream and downstream budgets is about $2 billion of lower carbon capex to lower the carbon intensity of traditional operations and grow new energy business lines, the company said. Chevron's Geismar renewable diesel expansion project is scheduled to begin operations 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 Co., including the Golden Triangle Polymer Project and Ras Laffan petrochemical project. WPMP field conversion is forecasted to begin start-up in first-half 2024.

“We’re maintaining capital discipline in both traditional and new energies,” said Chevron chairman and chief executive officer 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 $14-16 billion through 2027 (OGJ Online, May 22, 2023). On Oct. 23, 2023, Chevron detailed its agreement to acquire Hess Corp. (OGJ Online, Oct. 23, 2023). The deal is expected to close in first-half 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 $19-22 billion.