Chevron Announces a Disciplined $18-$19B Capex Plan for 2026

Chevron Corporation CVX has outlined its capital expenditure program for 2026, setting an organic budget range of $18-$19 billion. The plan sits at the lower end of the company’s long-term guidance and underscores its strategy of prioritizing high-return projects, operational discipline and strong cash-flow growth. Recently, during its Annual Investor Day, Chevron introduced a plan aimed at lowering costs, improving efficiency and delivering stronger returns to investors over the remainder of the decade. The Chief Executive Officer, Mike Wirth, emphasized that the 2026 investment plan emphasizes high-return projects, operational discipline and efficiency to drive cash flow and earnings.

U.S. Upstream & Offshore Projects Take Center Stage

More than half of Chevron’s 2026 spending will be directed toward U.S. operations, with approximately $10.5 billion dedicated to domestic projects. Upstream alone accounts for about $17 billion, including nearly $6 billion earmarked for shale and tight assets across the Permian, DJ and Bakken basins. These investments support Chevron’s plan to produce more than 2 million barrels of oil equivalent per day in the United States.

Offshore spending remains another major pillar, totaling around $7 billion for global projects. Significant capital will go toward developing assets in Guyana — strengthened by the recent Hess acquisition — as well as the Eastern Mediterranean and the U.S. Gulf of Mexico.

Investments in Downstream & Lower-Carbon Initiatives

Chevron plans to allocate approximately $1 billion to downstream operations, with most of that slated for U.S. facilities. Within the broader upstream and downstream budgets, the company is dedicating around $1 billion to lowering carbon intensity and expanding its new energies portfolio, reinforcing its commitment to delivering cleaner and more efficient energy solutions.

Affiliate capital spending is projected between $1.3 and $1.7 billion, largely driven by major petrochemical projects underway at Chevron Phillips Chemical and ongoing development at Tengizchevroil. Chevron Phillips’ spend is anticipated to be nearly half of affiliate capex to support two of the new world-scale facilities under construction and expected to start production in 2027.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companies, participating in every aspect of the energy sector, from oil production to refining and marketing. Currently, CVX carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some top-ranked stocks like Drilling Tools International Corporation DTI, Par Pacific Holdings, Inc. PARR and Vista Energy, S.A.B. de C.V. VIST, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Drilling Tools International is an oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The Zacks Consensus Estimate for DTI’s 2025 revenues indicates 1.8% year-over-year growth.

Houston-based Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. The Zacks Consensus Estimate for PARR’s 2025 earnings indicates 2170% year-over-year growth.

Vista Energy is a prominent exploration and production company with a significant footprint in Vaca Muerta, which ranks among the largest shale oil and gas resources outside of North America. The Zacks Consensus Estimate for VIST’s 2025 earnings indicates 243.1% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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