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Chevron Spending 20% More in 2022; $3.0B Earmarked for the Permian

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   |    Monday,December 06,2021

Chevron Corp. announced its 2022 capital plans.

2022 Overview

- Capital Budget: $15 billion (the low end of its $15 to $17 billion guidance range) - this is up 20% vs. 2021 spending

  • Upstream: $8.0 billion

This includes about $3 billion for Permian Basin unconventional development, $1.5 billion for other shale & tight assets worldwide.

Additionally, $3 billion of the upstream program is planned for major capital projects underway, of which about $2 billion is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP / WPMP) at the Tengiz field in Kazakhstan. Finally, approximately $1.5 billion is allocated to exploration, early-stage development projects, midstream activities and carbon reduction opportunities.

  • Lower Carbon Spending: $800 million
  • Downstream: $2.3 billion

The program excludes expected inorganic capital of $600 million in anticipation of the formation of a renewable fuel feedstocks joint venture with Bunge.

Chevron Chairman and CEO Mike Wirth said: "The 2022 capital budget reflects Chevron's enduring commitment to capital discipline. 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."

Share Buybacks

Consistent with its track record of returning excess cash to shareholders, the company is raising its share buyback guidance range to $3 to $5 billion per year, versus prior guidance of $2 to $3 billion 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."

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