Chevron Corp. late Wednesday unveiled its 2024 capital-expenditure budget, calling for expenses of about $16 billion mostly to boost production in U.S. shale projects.
Chevron
CVX,
-0.23%
last year announced a $14 billion capex budget, which was a 25% jump from its 2022 budget.
The oil giant said it plans to spend about two-thirds of this year’s budget on U.S. projects, including about $6.5 billion to develop Chevron’s U.S. shale portfolio. Also in line are Gulf of Mexico projects, Chevron said.
“We’re maintaining capital discipline in both traditional and new energies,” Chief Executive Mike Wirth said. “These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders.”
Chevron had said it plans to keep its capex budget within a range of $14 billion to $16 billion through 2027, but its deal to buy Hess Corp.
HES,
-1.52%
for $53 billion has changed things.
The deal to buy Hess, announced in October, is expected to close in the first half of 2024, subject to approvals, Chevron said. Following the closing of the deal, Chevron expects to keep its yearly capex budget between $19 billion and $22 billion.
Shares of Chevron edged higher in the after-hours session Wednesday after ending the regular trading day down 0.2%.
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