Chevron Approves $18–19 Billion Capex for Leviathan Expansion, Boosting Gas Output to 21 bcm
Chevron’s subsidiary and partners reached final investment decision to expand Leviathan platform in Israel, approving three new wells and facility upgrades to lift annual gas output to 21 bcm. Management forecasts $18–19 billion capex in 2026 and targets 2–3 percent annual production growth through 2030.
1. Chevron’s Strategic Growth Outlook and “Buy” Rating
Analyst Michael Del Monte maintains a “Buy” rating on Chevron with a $183 per share target, citing three core value drivers: advanced oil recovery programs in the Permian Basin, deepwater Guyana reserves and new gas-fired power generation contracts for data centers. Management forecasts a 2–3% compound annual production growth rate through 2030, underpinned by structural cost reductions of $3–4 billion by 2027. Free cash flow per share is projected to nearly double over the next five years, driven by efficiency gains and higher realized commodity spreads in both upstream and midstream operations.
2. U.S. Moves to Expand Venezuela Operating License
In an exclusive Reuters interview, U.S. Energy Secretary Chris Wright confirmed expedited federal action to broaden Chevron’s license to resume offshore and onshore operations in Venezuela. The expansion is expected to cover up to 200,000 barrels per day of crude production capacity and unlock potential joint ventures with state-owned Petróleos de Venezuela. Officials anticipate final approval in Q2, creating a multi-billion-dollar investment pipeline for reservoir redevelopment and enhanced oil recovery techniques.
3. Final Investment Decision on Leviathan Gas Expansion
Chevron Mediterranean Limited and partners reached a Final Investment Decision to drill three new wells and upgrade processing facilities on the offshore Leviathan platform. The $18–19 billion capital program for 2026 will boost annual gas deliveries to Israel, Egypt and Jordan to approximately 21 billion cubic meters. Chevron holds a 39.66% working interest in the project, while partners NewMed Energy and Ratio Energies hold 45.34% and 15%, respectively. Operations are slated to commence by late 2029, with first gas targeted shortly thereafter.
4. Capital Expenditure and Production Targets Through 2030
Chevron’s board approved an organic capital expenditure envelope of $18–19 billion for consolidated upstream and downstream subsidiaries in 2026. The company reiterated a target of 2–3% annual production growth in oil and gas through 2030, emphasizing disciplined project execution in Guyana, the Permian and the Eastern Mediterranean. Operating cash flow is expected to benefit from ongoing cost optimization, with management projecting a return on capital employed above 15% across new developments.