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Chevron targets lower-end 2026 organic CapEx range after efficiency gains
The company said it also advanced Project Kilby toward a late-2026 final investment decision and is negotiating Venezuela terms to support up to 50% production growth by 2028.
Chevron outlined progress from its Q2 2026 operations and strategy, including achieving a $3 billion annual structural cost reduction target six months early. The company said 70% of the savings came from efficiency gains and organizational restructuring.
In production and capital spending updates, Chevron reported record U.S. upstream output of nearly 2.1 million barrels of oil equivalent per day, supported by capital efficiencies and a 25% reduction in CapEx per barrel in shale and tight assets. The company also said it expects to finish 2026 at the lower end of its $18 billion to $19 billion organic CapEx guidance range due to sustained capital efficiencies.
Chevron added that it is targeting 2030 objectives of 2% to 3% annual production growth and greater than 10% average annual free cash flow growth at flat commodity prices. It also said it is advancing its Project Kilby data center power initiative toward a final investment decision in late 2026, targeting mid-teens returns.
On growth opportunities and contracted cash flows, Chevron said it is negotiating improved fiscal terms in Venezuela with a goal to grow production by up to 50% by the end of 2028. It also highlighted a 20-year take-or-pay PPA with Microsoft for 2.67 GW, describing it as a shift toward long-duration contracted cash flows less tied to commodity cycles.