Chevron Corp (NYSE:CVX) reported a 2018 exploratory and capital spending plan of $18.3 billion. This figure comprises $5.5 billion for the firm’s share of expenditures by related firms. John Watson, the CEO and Chairman, reported that their 2018 budget is lowered for the fourth successive year, showcasing project completions, investment high-grading and improved efficiencies. They are fully funding their advantaged Permian Basin spot and dedicating around three-quarters of their spending to assignments that are projected to record cash flow within two years.
The CEO of Chevron reported that with production currently surpassing projection in the Permian, their 2018 plan should offer both solid free cash flow and strong production growth, at prices comparable to what they have noted this year. In the upstream segment, around $8.7 billion is expected to sustain presently producing assets, counting $3.3 billion for the Permian as well as $1 billion for other tight rock and shale investments.
Around $5.5 billion of the upstream plan is intended for key capital projects underway, counting $3.7 billion related with the Future Growth Assingment at the Tengiz field in Kazakhstan. International exploration funding is projected to be nearly $1.1 billion. Remaining upstream spending will be for preliminary stage assignments supporting prospective future developments.
Chevron reported that planned capital spending of approximately $2.2 billion is related with the firm’s downstream operations that market, transport and refine fuels, and distribute and manufacture lubricants, petrochemicals and additives. The company marks as one of the major integrated energy firms across the world.
Through its subsidiaries that perform business worldwide, the firm is engaged in virtually every part of the energy industry. The firm explores for, transports and produces natural gas and crude oil; refines, distributes and markets transportation lubricants and fuels; sells and manufactures additives and petrochemicals; generates power; and deploys and develops technologies that improve business value in every facet of the firm’s operations.