Chevron (NYSE:CVX) Releases 2011 Capex Budget

Chevron (NYSE:CVX) released their capex budget for 2011, and it is about $5.4 billion more than the budget for 2010.

Barclays (NYSE:BCS) noted, "CVX announced its 2011 capital and exploratory budget of $26 billion (including $2 billion for affiliates), compared to its 2010 budget level of $21.6 billion, or a 20% increase. Eighty-seven percent of the program is directed towards the upstream, 11% in downstream, and the remaining 2% in other. So far year to date, 2010 capital expenditure was $15.5 billion (Upstream: $13.8 billion, Downstream: $1.6 billion, Other: $0.2 billion), which suggests full-year spending may come in at $21.5-$22.0 billion. The 2011 capex budget of $24 billion (net of affiliates) is $2 billion higher than our previous forecast of $22 billion. While the higher capex budget is a slight negative, in our view, it is not as negative as some were anticipating in the market (previously, we heard of estimates as high as $30 billion)...Lower 2011 EPS to $10.40 from $10.50 per share."

Barclays maintains an "Overweight" rating on Chevron, which closed Friday at $87.03, up $0.38, or 0.44 percent. They lowered their price target on them from $110 to $107.