Chevron's Brilliant Investment Strategy Could Pay Big Dividends in 2024 and Beyond
(NYSE: CVX) recently released its preliminary capital plans for 2024. The oil giant expects to increase its capital spending by about 11% next year. It's focusing on investing in projects that will deliver high returns and durable cash flow. That would give it more money to return to shareholders via dividends and stock buybacks. Here's a look at Chevron's plans for the upcoming year.
Chevron plans to invest between $15.5 billion and $16.5 billion into organic capital projects next year. In addition, it sees capital spending at its joint ventures (CPChem and Kazakhstan) coming in at around $3 billion. That's about 11% higher than last year at the midpoint.
The company's budget doesn't include capital spending related to Hess (NYSE: HES), which Chevron agreed to acquire in October. The company expects that deal to close in the first half of next year. It sees its annual capital spending budget rising to a range of $19 billion-$22 billion following its acquisition of Hess.
Source Fool.com
Chevron Corp. Stock
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