Chevron's 2012 capital expenditure budget is 17% higher than the $28 billion the oil giant said it spent this year, its highest level of spending ever. Rivals ConocoPhillips (COP) and Marathon Oil Corp. (MRO) recently announced double-digit capital budget increases for next year, showing major oil companies are confident about the sustainability of high oil prices.
Chevron's 2012 capital program includes spending of nearly $9 billion in the U.S., with major new investments in the Gulf of Mexico, the Marcellus Shale fields in Pennsylvania and at the company's Pascagoula, Miss. refinery, the company said.
Chevron expects to spend $3 billion next year in exploration projects, including the appraisal of new acreage acquired in the past two years in Liberia, China and various international shale gas possibilities. The planned spending also includes more exploration and appraisal activity in western Australia, the Gulf of Mexico and western Africa.
The company budgeted $3.6 billion in 2012 for its refining and marketing operations and about $600 million for technology, power generation and other activities.
Chevron (symbol CVX, $97): A spike in oil prices last summer helped the company report blockbuster third-quarter earnings. At today's lower oil prices, analysts believe Chevron's earnings will drop about 7 percent in 2012. Even so, the stock sells at bargain-basement prices and pays an annual dividend of $3.24 per share (the stock yields 3.5 percent).
Chevron’s (NYSE:CVX) move to boost 2012 capital spending by 26% to $32.7B came in higher than expected, Barclays Capital tells clients. Management had previously indicated 2012 spending would be above 2011, but Barclays thinks the shares may nevertheless come under short-term pressure “due to the significant increase in expected cash For the latest updates on the stock market, visit Stock Market Today
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