Chevron Raises Exploration Spending 50% After Identifying 30 Net New Prospects
Key Facts
Chevron said it will raise exploration spending in 2026 by 50% compared with 2025, after identifying 30 net new exploration prospects, according to the third-quarter earnings call transcript. The company linked the increase to a broader opportunity set that could support renewal of its asset portfolio. It said on the call: "With 30 net new prospects identified, we are increasing exploration spending 50% compared with 2025." The move is part of an expansion program across multiple exploration regions, as the company seeks to balance long-term investment with capital-spending discipline. Chevron set its 2026 organic capital budget at between 18 and 19 billion dollars, at the low end of its long-term guidance range of 18 to 21 billion dollars.
The company expanded its exploration base over the past two years by adding 22 million acres, doubling the area of its portfolio and adding 12 new basins. The expansion map includes a focus on both sides of the South Atlantic and the eastern Mediterranean, alongside other areas where the company operates. Chevron said its program delivered 15 infrastructure-backed discoveries over two years, with a 40% success rate, higher than the industry average, according to the company. Existing infrastructure gives this type of discovery added importance as part of the exploration expansion the company has announced. In the Gulf of Mexico, pattern-recognition technologies identified more than 150 exploration indicators, and 16 targets advanced to the evaluation stage.
Chevron has introduced artificial intelligence tools into its exploration work. Its Apex tool draws on 4 petabytes of data and 100 years of company knowledge, while Scout AI has been deployed in 10 new basins. The company presents these tools as part of efforts to expand data analysis and identify potential targets. In the third quarter, cash flow from operations, excluding working capital, was 16.6 billion dollars, while adjusted free cash flow reached 14.2 billion dollars. These cash results put the expanded exploration program alongside the resources the company reported for the quarter. Chevron shares closed at 235.52 dollars on October 30, 2026, and rose 1.8% in morning trading on the day results were announced, according to the Associated Press.
On geographic expansion, Chevron announced an offshore oil discovery in Angola's Lower Congo Basin during the third quarter and said its program is preparing for a multi-well campaign in the region. Plans include the Nabba-1X well in Namibia before the end of 2026. The company also signed an exploration agreement with Libya's National Oil Corporation in the Sirte Basin, expanding its portfolio presence in North Africa. In Venezuela, the company said its joint ventures plan to invest 7 billion dollars over the next five years. Chief Executive Mike Wirth said the company is reinvesting to provide more energy to a market facing supply constraints.