Chevron Corp. has announced a US$35 billion capital and exploratory investment programme for 2015.
According to a statement released on its website, Chevron has earmarked approximately US$14 billion for the construction of major capital projects already underway, primarily LNG (approximately US$8.5 billion) and deepwater developments (approximately US$3.5 billion).
The 2015 budget is 13% lower than total investments for 2014.
Chevron’s Chairman and CEO, John Watson, said: "We continue to execute against a consistent set of business strategies which are focused on creating long-term value for our shareholders. Although commodity prices have fallen recently, we believe long-term market fundamentals remain attractive […] Our investment priorities are ensuring safe, reliable operations and progressing our queue of projects under construction. Once on-line, these new projects are expected to measurably increase our production and cash generation.
"We will continue to monitor and be responsive to market conditions, and to actively pursue cost reductions throughout our supply chain in order to lower overall outlays. We anticipate growing flexibility in our spend as projects under construction are completed and as supplier contracts are renewed. We are testing our short-cycle investments, particularly base business and unconventional assets, at current prices and are selecting only the most attractive opportunities to move forward."
In its 4Q14 results, Chevron reported earnings of US$3.5 billion (US$1.85/share – diluted), compared with US$4.9 billion (US$2.57/share – diluted) in the corresponding period of 2013. Full-year 2014 earnings were US$19.2 billion (US$10.14/share – diluted) compared with US$21.4 billion (US$11.09/share – diluted) in 2013.
Sales and other operating revenues in 4Q14 were US$42 billion, compared to US$54 billion in the year-ago period.
Adapted from press release by Callum O'Reilly