Chevron Announces $20 Bln Capital And Exploratory Budget For 2019

(RTTNews) - Chevron Corp. (CVX) Thursday announced a 2019 organic capital and exploratory spending program of $20 billion.

"Our 2019 budget supports a robust portfolio of upstream and downstream investments, highlighted by our world-class Permian Basin position, additional shale and tight development in other basins and our major capital project at TCO in Kazakhstan," said Chairman and CEO Michael K. Wirth. "Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realize cash flow within two years."

Wirth continued, "We expect to continue to deliver steady production growth, enabling continued free cash flow that underpins our strong dividend and share repurchase program."

Chevron plans to spend $17.3 billion for upstream business, with U.S. Upstream to be $7.6 billion and International Upstream $9.7 billion.

About $2.5 billion of planned capital spending is associated with the company's downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.