- Demonstrates continued capital discipline
- Lowers 2022 to 2025 annual capital guidance to $14-$16
billion
- Focus on generating higher returns and driving long-term
value
Chevron Corporation today announced a 2021 organic capital and
exploratory spending program of $14 billion and lowered its
longer-term guidance to $14 to $16 billion annually through 2025.
This capital outlook will continue to prioritize investments that
are expected to grow long-term value and deliver higher returns and
lower carbon, including over $300 million in 2021 for investments
to advance the energy transition.
“Chevron remains committed to capital discipline with a 2021
capital budget and longer-term capital outlook that are well below
our prior guidance,” said Chevron Chairman and CEO Michael Wirth.
“With our major restructuring behind us and Noble Energy
integration on track, we’re prepared to execute this program with
discipline.”
Chevron’s capital guidance of $14 to $16 billion annually from
2022 to 2025 is significantly lower than its previous guidance of
$19 to $22 billion, which excluded Noble Energy. During this time
period, as capital is expected to decrease for a major expansion in
Kazakhstan, the company expects to increase investments in a number
of Chevron’s advantaged assets, including its world class position
in the Permian, other unconventional basins, and the Gulf of
Mexico.
“Chevron is in a different place than others in our industry,”
Wirth said. “We’ve maintained consistent financial priorities
starting with our firm commitment to the dividend. We took early
and swift action at the beginning of the pandemic to prudently
allocate capital, reduce costs and protect our industry-leading
balance sheet. And we’ve completed a major acquisition and
restructuring that positions our company to deliver higher returns
and grow long-term value.”
Details of the 2021 Capital and Exploratory Investment Program
include:
Chevron 2021 Planned Capital &
Exploratory Expenditures1
$
Billions
U.S. Upstream
5.0
International Upstream
6.5
Total Upstream
11.5
U.S. Downstream
1.2
International Downstream
0.9
Total Downstream
2.1
Other
0.4
TOTAL (Including Chevron’s Share of
Expenditures by Affiliated Companies)
13.9
Expenditures by Affiliated Companies
(4.2)
Cash Expenditures by Chevron
Consolidated Companies
9.7
(1) Numbers may not sum due to
rounding
In the upstream business, approximately $6.5 billion is
allocated to currently producing assets, including about $2 billion
for Permian unconventional development. Approximately $3.5 billion
of the upstream program is planned for major capital projects
underway, of which about 75 percent is associated with the Future
Growth Project and Wellhead Pressure Management Project (FGP /
WPMP) at the Tengiz field in Kazakhstan. The remaining $1.5 billion
is allocated to exploration, early stage development projects, and
midstream activities.
Chevron Corporation is one of the world's leading integrated
energy companies. Through its subsidiaries that conduct business
worldwide, the company is involved in virtually every facet of the
energy industry. Chevron explores for, produces and transports
crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells
petrochemicals and additives; generates power; and develops and
deploys technologies that enhance business value in every aspect of
the company's operations. Chevron is based in San Ramon,
California. More information about Chevron is available at
www.chevron.com.
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 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,”
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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 our
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; public health crises, such as pandemics
(including coronavirus (COVID-19)) and epidemics, and any related
government policies and actions; changing economic, regulatory and
political environments in the various countries in which the
company operates; general domestic and international economic and
political conditions; changing refining, marketing and chemicals
margins; the company’s ability to realize anticipated cost savings,
expenditure reductions and efficiencies associated with enterprise
transformation initiatives; actions of competitors or regulators;
timing of exploration expenses; timing of crude oil liftings; the
competitiveness of alternate-energy sources or product substitutes;
technological developments; the results of operations and financial
condition of the company’s suppliers, vendors, partners and equity
affiliates, particularly during extended periods of low prices for
crude oil and natural gas 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 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 ability to successfully integrate the
operations of Chevron and Noble Energy and achieve the anticipated
benefits from the acquisition of Noble Energy; 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, industry-specific taxes, tariffs,
sanctions, changes in fiscal terms or restrictions on scope of
company operations; foreign currency movements compared with the
U.S. dollar; material reductions in corporate liquidity and access
to debt markets; the receipt of required Board authorizations to
pay future dividends; 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 18 through 21 of the company's 2019 Annual Report
on Form 10-K, as updated by Part II, Item 1A, "Risk Factors" in the
company's subsequently filed Quarterly Reports on Form 10-Q, and in
other 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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version on businesswire.com: https://www.businesswire.com/news/home/20201203005231/en/
Sean Comey, Chevron, 925-842-5509
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