If you thought Chevron was going to let its investment game slide, well, think again! The energy giant (NYSE:CVX) announced on Wednesday that it’s gearing up to pump an estimated $15.5B to $16.5B into total capital spending during FY 2024 – a staggering 14% increase from this year. And that’s not all – they’re throwing in an extra $3B for affiliate capex just for good measure.
Breaking it down, Chevron (CVX) revealed that next year’s upstream spending will hit approximately $14B, with a hefty two-thirds of that allocation making its way to the good old U.S. of A. That’s right, $5B is earmarked for sparking development in the Permian Basin, with another $1.5B sizzling on other shale and tight oil projects. Plus, there’s a cool $3.5B revving up for projects in the Gulf of Mexico, including the much-anticipated Anchor project, set to make waves with its first oil production in 2024.
To add some green sizzle to the mix, the company has tossed in $2B to lower the carbon intensity of traditional operations and power up those new energy business lines. One of the highlights? Watch out for the Geismar renewable diesel expansion project – it’s all set to roll out the production carpet in 2024.
But wait, there’s more! Nearly half of the affiliate capex is primed for funneling into Tengizchevroil’s FGP/WPMP project in Kazakhstan. And for those keeping score, the WPMP field conversion is all geared up to kick off its start-up in the first half of 2024.
Now, here’s where things take an interesting turn. Chevron (CVX) had initially set its sights on maintaining a capex budget ranging from $14B to $16B through 2027. But here’s the kicker – once it wraps up its proposal acquisition of Hess next year, it’s bracing itself for annual capital spending to swell to a whopping $19B to $22B.