Chevron Announces $35.0 Billion Capital and Exploratory Budget for 2015
January 30 2015 - 7:31AM
Business Wire
Chevron Corporation (NYSE:CVX) today announced a $35.0 billion
capital and exploratory investment program for 2015. Included in
the 2015 program are $4.0 billion of planned expenditures by
affiliates, which do not require cash outlays by Chevron. The 2015
budget is 13% lower than total investments for 2014.
“We continue to execute against a consistent set of business
strategies which are focused on creating long-term value for our
shareholders. Although commodity prices have fallen recently, we
believe long-term market fundamentals remain attractive,” said
Chairman and CEO John Watson. “Our investment priorities are
ensuring safe, reliable operations and progressing our queue of
projects under construction. Once on-line, these new projects are
expected to measurably increase our production and cash
generation,” he said.
“We will continue to monitor and be responsive to market
conditions, and to actively pursue cost reductions throughout our
supply chain in order to lower overall outlays. We anticipate
growing flexibility in our spend as projects under construction are
completed and as supplier contracts are renewed. We are testing our
short-cycle investments, particularly base business and
unconventional assets, at current prices and are selecting only the
most attractive opportunities to move forward,” Watson
continued.
Highlights of the Capital and
Exploratory Spending Program
Chevron 2015 Planned Capital &
Exploratory Expenditures $ Billions U.S. Upstream
8.2 International Upstream
23.4
Total Upstream 31.6 U.S. Downstream 2.0 International
Downstream
0.8
Total Downstream 2.8 Other
0.6
TOTAL (Including Chevron’s Share of Expenditures by Affiliated
Companies) 35.0 Expenditures by Affiliated
Companies
(4.0)
Cash Expenditures by Chevron Consolidated Companies
31.0
For Upstream, approximately $12 billion of planned upstream
capital spending is directed at existing base producing assets,
which includes shale and tight resource investments (~$3.5
billion). Roughly $14 billion is related to the construction of
major capital projects already underway, primarily LNG (~$8.5
billion) and deepwater developments (~$3.5 billion). Global
exploration funding accounts for approximately $3 billion.
Roughly 75 percent of affiliate expenditures are associated with
investments by Tengizchevroil LLP in Kazakhstan and Chevron
Phillips Chemical Company LLC (CPChem) in the United States.
Chevron is one of the world's leading integrated energy
companies, with 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 petrochemical
products; generates power and produces geothermal energy; provides
energy efficiency solutions; and develops the energy resources of
the future, including biofuels. Chevron is based in San Ramon,
California. More information about Chevron is available at
www.chevron.com.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This press 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 such as
“anticipates,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “may,” “could,” “budgets,” “outlook” and similar
expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
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 press 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; changing refining,
marketing and chemicals margins; 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 equity affiliates; 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 production or manufacturing facilities or
delivery/transportation networks due to war, accidents, political
events, civil unrest, severe weather or crude oil production quotas
that might be imposed by the Organization of Petroleum Exporting
Countries; the potential liability for remedial actions or
assessments under existing or future environmental regulations and
litigation; significant investment or product changes required by
existing or future environmental statutes, regulations and
litigation; the potential liability resulting from other pending or
future litigation; the company’s future acquisition or disposition
of assets and gains and losses from asset dispositions or
impairments; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes, changes in fiscal terms
or restrictions on scope of company operations; foreign currency
movements compared with the U.S. dollar; the effects of changed
accounting rules under generally accepted accounting principles
promulgated by rule-setting bodies; and the factors set forth under
the heading “Risk Factors” on pages 27 through 29 of the company’s
2013 Annual Report on Form 10-K. In addition, such results could be
affected by general domestic and international economic and
political conditions. Other unpredictable or unknown factors not
discussed in this press release could also have material adverse
effects on forward-looking statements.
Chevron CorporationKurt Glaubitz, +1 925-790-6928
Chevron (NYSE:CVX)
Historical Stock Chart
From Apr 2024 to May 2024
Chevron (NYSE:CVX)
Historical Stock Chart
From May 2023 to May 2024