Chevron Corp CVX-N on Wednesday said it expects to average 13 to 14 company-operated rigs in 2024 in the Permian, fewer than previously anticipated, but up on average from 2022.
The U.S. producer expects capital expenditures of around $5-billion next year due to higher activity levels, increased water handling facilities and lower inflation, it said in a presentation during a Barclays energy conference.
Chevron maintained its target to hit 1 million barrels of oil equivalent per day (boepd) in 2025.
The company’s production estimates were also helped by the acquisition of shale producer PDC Energy in early August, making Colorado one of Chevron’s top-five assets in terms of production and free cash flow.
The producer plans to deliver $400-million in annual capital expenditures efficiencies and $100-million in operational expenditures from the acquisition.