12:05 PM EST, 12/06/2024 (MT Newswires) -- Chevron ( CVX ) said Friday it expects a capital expenditure between $14.5 to $15.5 billion for consolidated subsidiaries in 2025.

The company also revealed capex budget slated for affiliates in the range of $1.7 to $2.0 billion next year.

The total budget represents a reduction of a $2 billion year over year as the company focuses on cost reductions and capital discipline. About $1.5 billion of the capex for subsidiaries will focus on lowering carbon footprint in operations and boosting New Energies businesses.

Chevron ( CVX ) said roughly $13 billion of its 2025 spending will be for upsteam projects, two-thirds of which will be used in the US, including $4.5 billion to $5 billion in the Permian Basin as it emphasizes free cash flow instead of production growth. The remaining US budget will be split between the DJ Basin and the Gulf of Mexico, where deepwater production is seen reaching 300 thousand barrels of oil equivalent per day in 2026.

About two-thirds of the $1.2 billion capex for downstream operations will be allocated in the US.

The affiliate capex will go to Tengizchevroil, which is developing Future Growth Project, and Chevron Phillips Chemical, which is developing Golden Triangle Polymers and Ras Laffan Petrochemical projects.

Chevron ( CVX ) shares were down nearly 2% in recent trading.

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