Chevron Corporation (CVX) laid out its 2026 spending plans Wednesday, projecting organic capital expenditures between $18 billion and $19 billion for consolidated subsidiaries. That lands at the conservative end of the company's long-term guidance range of $18-21 billion, signaling disciplined budget management even as the energy giant pursues ambitious production targets.

On top of that, Chevron expects to allocate another $1.3-1.7 billion in capital through its affiliates next year.

Where the Money Goes

The United States gets the lion's share. Chevron projects roughly $10.5 billion in total U.S. capital spending, representing more than half the entire 2026 budget. Within that, upstream investments come in around $17 billion overall, with nearly $6 billion designated for U.S. shale and tight plays across the Permian, DJ, and Bakken basins. That investment level supports U.S. production of over two million barrels of oil equivalent per day.

Global offshore spending looks to hit about $7 billion, with the bulk targeting growth in Guyana, the Eastern Mediterranean, and the Gulf of America. About $0.4 billion of that represents capitalized interest, mostly tied to Guyana projects where development timelines stretch over multiple years.

Downstream operations get a smaller slice at around $1 billion, with nearly 75% of that going to U.S. facilities.

Notably, Chevron plans to dedicate roughly $1 billion across its upstream and downstream investments specifically for reducing carbon intensity and expanding new energy businesses—a reflection of the industry's growing focus on emissions reduction.

The Bigger Picture

Last month, Chevron outlined broader ambitions through 2030, targeting 2-3% annual growth in oil and gas production. The company also projected that at a flat $70 Brent oil price, average annual adjusted earnings per share would grow above 10% through 2030, jumping over 14% if real prices escalate.

Interestingly, Chevron plans to reduce Permian capital spending to about $3.5 billion starting in 2026, suggesting the basin's development is maturing enough to require less intensive investment while still generating strong returns.

Price Action: CVX shares traded up 0.27% at $152.0 in premarket activity Thursday.