Chevron increases its 2023 capital investment budget by more than 25% to $17 billion (NYSE:CVX)
Chevron (NYSE:CVX) said Wednesday it has set up a Capital expenditure budget for fiscal year 2023 is $17 billionat the top of the mid-term $15B-$17B range and up more than 25% from projected spending in 2022.
Chevron (CVX) said upstream investment includes more than $4 billion for Permian Basin development and ~$2 billion for other tight and shale assets.
The budget also includes ~$2 billion for projects to reduce carbon emissions or improve renewable fuel production capacity, more than double the 2022 budget.
Total corporate spending next year will be significantly higher than in pandemic years 2020-21, but still almost half the annual average $30B of the period 2012-19.
“Our investment budget remains in line with previous guidance despite inflation,” said President and CEO Mike Wirth.
Chevron (CVX) stock has become expensive, “trading at a valuation where it needs double-digit highs over the long-term, which history shows is unlikely,” The Value Portfolio wrote in a report. . analysis published on Seeking Alpha.