(Chevron, 1.Dec.2021) — Chevron Corporation (NYSE: CVX) announced a 2022 organic capital and exploratory spending program of $15bn, at the low end of its $15bn to $17bn guidance range and up more than 20% from 2021 expected levels. This capital program supports Chevron’s objective of higher returns and lower carbon, including approximately $800mn in lower carbon spending. The program excludes expected inorganic capital of $600mn in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.
“The 2022 capital budget reflects Chevron’s enduring commitment to capital discipline,” said Chevron Chairman and CEO Mike Wirth. “We’re sizing our capital program at a level consistent with plans to sustain and grow the company as the global economy continues to recover.”
Consistent with its track record of returning excess cash to shareholders, the company is raising its share buyback guidance range to $3bn to $5bn per year, versus prior guidance of $2bn to $3bn per year. “We’re a better company than we were just a few years ago. We’re more capital and cost efficient, guided by a clear and consistent objective to deliver higher returns and lower carbon,” Wirth continued. “And this enables us to return more cash to shareholders.”
Details of the 2022 Organic Capital and Exploratory Investment Program include:
Upstream
In the upstream business, approximately $8bn is allocated to currently producing assets, including about $3bn for Permian Basin unconventional development and approximately $1.5bn for other shale & tight assets worldwide. Additionally, $3bn of the upstream program is planned for major capital projects underway, of which about $2bn is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP / WPMP) at the Tengiz field in Kazakhstan. Finally, approximately $1.5bn is allocated to exploration, early-stage development projects, midstream activities and carbon reduction opportunities.
Downstream
Approximately $2.3bn of planned organic capital spending is associated with the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives, and petrochemicals. This also includes capital to grow renewable fuels and products businesses.
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