• Organic capex of $14 billion; affiliate capex of $3 billion
• Includes $2 billion of lower carbon capex

Chevron Corporationannounced 2023 organic capital expenditure budgets of $14 billion for consolidated subsidiaries  and $3 billion for equity affiliates, which total near the high end of the company’s guidance range.

The company’s 2023 capex budget is up more than 25% from 2022 expected spend, excluding acquisitions. Affiliate capex in 2023 is down modestly from 2022 expected spend. These budgets support Chevron’s objective to safely deliver higher returns and lower carbon and include approximately $2 billion in lower carbon capex, more than double the 2022 budget.

“We’re maintaining capital discipline while investing to grow both traditional and new energy supplies,” said Chevron Chairman and CEO Mike Wirth. “Our 2023 capex budgets are consistent with our long-term plans to safely deliver higher returns and lower carbon.”

Chevron’s 2023 capex budget assumes cost inflation that averages in the mid-single digits with certain areas higher, such as the Permian Basin that assumes low double-digit cost inflation.

“Our capex budgets remain in line with prior guidance despite inflation,” Wirth continued. “We’re winning back investors with capital efficient growth, a strong balance sheet, and more cash returned to shareholders.”

Capex

Upstream capex includes more than $4 billion for Permian Basin development and roughly $2 billion for other shale & tight assets. More than 20% of upstream capex is for projects in the Gulf of Mexico. Lower carbon capex across all segments totals around $2 billion, including $0.5 billion to lower the carbon intensity of Chevron’s traditional operations and about $1 billion to increase renewable fuels production capacity.

Affiliate Capex

Nearly half of affiliate capex is for Tengizchevroil’s FGP / WPMP Project in Kazakhstan and about a third is for Chevron Phillips Chemical Company, including the U.S. Gulf Coast II petrochemical project.