Chevron Corporation (NYSE:CVX) today announced a 2018 capital
and exploratory spending program of $18.3 billion. This figure
includes $5.5 billion for the company’s share of expenditures by
affiliated companies.
“Our 2018 budget is down for the fourth consecutive year,
reflecting project completions, improved efficiencies, and
investment high-grading,” said Chairman and CEO John Watson. “We’re
fully funding our advantaged Permian Basin position and dedicating
approximately three-quarters of our spend to projects that are
expected to realize cash flow within two years.”
Watson continued, “With production currently exceeding guidance
in the Permian, our 2018 plan should deliver both strong production
growth and solid free cash flow, at prices comparable to what we’ve
seen this year.”
Details of the 2018 Capital and Exploratory Spending Program
include:
Chevron 2018 Planned Capital &
Exploratory Expenditures
$
Billions
U.S. Upstream 6.6 International Upstream
9.2
Total Upstream 15.8 U.S.
Downstream 1.4 International Downstream
0.8
Total Downstream 2.2 Other
0.3
TOTAL (Including Chevron’s Share of Expenditures by Affiliated
Companies) 18.3 Expenditures by
Affiliated Companies
(5.5)
Cash Expenditures by Chevron Consolidated Companies
12.8
In the upstream business, approximately $8.7 billion is
forecasted to sustain currently producing assets, including $3.3
billion for the Permian and $1.0 billion for other shale and tight
rock investments. Approximately $5.5 billion of the upstream
program is planned for major capital projects underway, including
$3.7 billion associated with the Future Growth Project at the
Tengiz field in Kazakhstan. Global exploration funding is expected
to be about $1.1 billion. Remaining upstream spend will be for
early stage projects supporting potential future developments.
Approximately $2.2 billion of planned capital spending is
associated with the company’s downstream businesses that refine,
market and transport fuels, and manufacture and distribute
lubricants, additives and petrochemicals.
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, Calif.
More information about Chevron is available at www.chevron.com.
As used in this press release, the term “Chevron” and such terms
as “the company,” “the corporation,” “our,” “we” and “us” 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.
As used in this press release, the term “free cash flow”
represents “Net Cash Provided by Operating Activities” less
“Capital expenditures” and “Cash dividends – common stock” as
disclosed in the Consolidated Statement of Cash Flows.
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 or phrases
such as “anticipates,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “positions,” “pursues,” “may,” “could,” “should,”
“budgets,” “outlook,” “trends,” ”guidance,” “focus,” “on schedule,”
“on track,” “goals,” “objectives,” “strategies,” “opportunities,”
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; the company's ability to realize
anticipated cost savings and expenditure reductions; 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; 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 and terrorist acts, crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond its
control; changing economic, regulatory and political environments
in the various countries in which the company operates; general
domestic and international economic and political conditions; 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 other pending
or future litigation; the company’s future acquisition or
disposition 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, 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 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 20 through 22 of the
company’s 2016 Annual Report on Form 10-K. Other unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20171206006365/en/
ChevronMelissa Ritchie, 925-842-0455MRitchie@chevron.com
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