How much does the second largest oil company in the U.S. intend to spend on capital expenditures in the coming year? In a surprise move, Chevron admits it is cutting its expenses.
Chevron, also one of the world’s largest companies says it intends to spend $14.5 to $15.5 billion in Cap-ex in 2025 in the U.S. The company’s 2025 capex and affiliate capex budgets represent a $2 billion year-over-year reduction.
“The 2025 capital budget along with our announced structural cost reductions demonstrate our commitment to cost and capital discipline,” said Chevron Chairman and CEO Mike Wirth. “We continue to invest in high-return, lower-carbon projects that position the company to deliver free cash flow growth.”
Capex
Upstream spending is expected to be about $13 billion, of which roughly two-thirds is allocated to develop Chevron’s U.S. portfolio. Permian Basin spend is lower than the 2024 budget and anticipated to be between $4.5 and $5.0 billion as production growth is reduced in favor of free cash flow. The remaining U.S. investment is split between the DJ Basin and the Gulf of Mexico, where deepwater growth projects continue to ramp and are expected to deliver offshore production of 300 mboed in 2026. In International, about $1.0 billion is allocated to Australia, which include Gorgon backfill investments.
Downstream capex is expected to be approximately $1.2 billion, with two-thirds allocated to the U.S. Within total upstream and downstream budgets, about $1.5 billion of capex is dedicated to lowering the carbon intensity of our operations and growing New Energies businesses. Corporate and other capex is expected to be around $0.7 billion.
Source: Business Wire