Chevron Corporation has announced its 2025 capital expenditure (capex) plans, which include an organic expenditure range of $14.5 to $15.5 billion for its consolidated subsidiaries, and an affiliate capex range of $1.7 to $2.0 billion. This represents a $2 billion reduction compared to the previous year. Chevron’s Chairman and CEO, Mike Wirth, emphasized the company’s focus on cost and capital discipline, noting that the 2025 budget, along with the company’s announced structural cost reductions, reflects their commitment to driving free cash flow growth. Chevron continues to prioritize high-return, lower-carbon projects.

In terms of upstream spending, Chevron plans to allocate around $13 billion, with approximately two-thirds of this amount directed toward its U.S. portfolio. The Permian Basin budget will be lower than in 2024, expected to fall between $4.5 billion and $5.0 billion. This reduction is due to a shift from aggressive production growth towards a focus on generating free cash flow. The remaining U.S. investment will be divided between the DJ Basin and the Gulf of Mexico, where Chevron's deepwater projects continue to progress, targeting offshore production of 300 thousand barrels of oil equivalent per day (mboed) by 2026. Internationally, around $1.0 billion is allocated to projects in Australia, including investments for Gorgon backfill.

For downstream operations, Chevron expects to spend about $1.2 billion, with two-thirds of this earmarked for U.S.-based activities. Of the overall upstream and downstream budgets, approximately $1.5 billion is dedicated to reducing carbon intensity and growing the company's New Energies business. Corporate and other capex is expected to total around $0.7 billion.

Regarding affiliate capex, Chevron’s Tengizchevroil LLP budget will account for less than half of the total, as the Future Growth Project is set to achieve first oil in the first half of 2025. The rest of the affiliate capex will support Chevron Phillips Chemical Company LLC, including the Golden Triangle Polymers and Ras Laffan Petrochemical Projects.

Additionally, Chevron plans to implement $2 to $3 billion in structural cost reductions by the end of 2026. The company expects a restructuring charge between $0.7 billion and $0.9 billion after-tax in Q4 2024, with associated cash outflows over the next two years. Chevron also anticipates recognizing non-cash after-tax charges of $0.4 billion to $0.6 billion for impairments, asset sales, and other obligations in Q4, which will be treated as special items and excluded from adjusted earnings.

Chevron remains one of the world’s top integrated energy companies, focusing on affordable, reliable, and increasingly cleaner energy to support human progress. It continues to produce crude oil and natural gas, manufacture fuels and petrochemicals, and advance technologies in areas such as renewable fuels, carbon capture, hydrogen, and other emerging energy technologies.