Chevron Corporation (NYSE:CVX) today announced a $26.6 billion capital
and exploratory investment program for 2016. Included in the 2016
program are $4.5 billion of planned expenditures by affiliates. The 2016
budget is 24% lower than total expected investments for 2015.
“Our capital budget will enable us to complete and ramp-up projects
under construction, fund high return, short-cycle investments, preserve
options for viable long-cycle projects, and ensure safe, reliable
operations,” said Chairman and CEO John Watson.
“We gain significant flexibility in our capital program as we complete
projects under construction,” Watson continued. “Given the near-term
price outlook, we are exercising discretion in pacing projects that have
not reached final investment decision.”
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Highlights of the Capital and Exploratory Spending Program
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Chevron 2016 Planned Capital & Exploratory Expenditures
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$ Billions
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U.S. Upstream
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5.4
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International Upstream
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18.6
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Total Upstream
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24.0
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U.S. Downstream
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1.6
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International Downstream
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0.6
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Total Downstream
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2.2
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Other
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0.4
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TOTAL (Including Chevron’s Share of Expenditures by Affiliated
Companies)
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26.6
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Expenditures by Affiliated Companies
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(4.5)
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Cash Expenditures by Chevron Consolidated Companies
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22.1
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For Upstream, approximately $9 billion of planned capital spending is
for existing base producing assets, which includes shale and tight
resource investments. Roughly $11 billion is related to major capital
projects currently underway, and approximately $3 billion relates to
projects yet to be sanctioned. Global exploration funding accounts for
approximately $1 billion.
Approximately 80 percent of affiliate expenditures are associated with
investments by Tengizchevroil LLP in Kazakhstan and Chevron Phillips
Chemical Company LLC (CPChem) in the United States.
Chevron 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
produces geothermal energy; and develops and deploys technologies that
enhance business value in every aspect of the company’s operations.
Chevron is based in San Ramon, California. More information about
Chevron is available at www.chevron.com.
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,” “enables,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,”
“may,” “could,” “should,” “budgets,” “outlook,” “on schedule,” “on
track” 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 equity affiliates; 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 business, production or manufacturing
facilities or delivery/transportation networks due to war, accidents,
political events, civil unrest, severe weather, cyber threats and
terrorist acts, other natural or human factors, or crude oil production
quotas that might be imposed by the Organization of Petroleum Exporting
Countries; the potential liability for remedial actions or assessments
under existing or future environmental regulations and litigation;
significant investment or product changes required by existing or future
environmental statutes, regulations and litigation; the potential
liability resulting from other pending or future litigation; the
company’s future acquisition or disposition of assets and 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; the effects of changed
accounting rules under generally accepted accounting principles
promulgated by rule-setting bodies; and the factors set forth under the
heading “Risk Factors” on pages 22 through 24 of the company’s 2014
Annual Report on Form 10-K. In addition, such results could be affected
by general domestic and international economic and political conditions.
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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