FTC Seeks More Information On Chevron & Hess Deal; Chevron Chalks Out 2024 Capex Budget

Chevron Corp CVX and Hess Corp HES received a request for additional information and documentary material from the FTC in connection with the merger.

The issuance of the second request extends the waiting period imposed by the HSR act until 30 days after Chevron and Hess have substantially complied with the Second Request.

Recently, CVX disclosed an organic capital expenditure budget of $15.5 to $16.5 billion for 2024 and an affiliate capital expenditure budget of about $3 billion.

The capital spending includes upstream spending of $14 billion, of which Chevron allocated around $6.5 billion for developing its U.S. shale and tight (gas) portfolio, including around $5 billion for Permian Basin development.

In addition, CVX has kept around 25% of the U.S. upstream capex for Gulf of Mexico projects, including the Anchor project, which is projected to achieve first oil in 2024.

Also Read: Chevron Exploring Options To Sell East Texas Assets: Report

On the other hand, CVX expects downstream capex to be about $1.5 billion, of which 80% is allocated to the U.S.  

Mike Wirth, Chairman and CEO, said, "We're maintaining capital discipline in both traditional and new energies. These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders."

Also Read: Oil Majors To Consolidate: Watch For Further M&A Activity Across Sector In 2024

Price Action: CVX shares are trading higher by 1.07% at $143.94 on the last check Friday.

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