The United States is set to capture two-thirds of Chevron Corp.’s upstream capital in the coming year, with most of the budget designed to expand infrastructure, drill longer laterals and increase well completions.

Total capital expenditures (capex) are set at $18.5-19.5 billion, up 11% year/year. 

The double-digit capex plan is geared in part to two big mergers this year: the $53 billion takeover of Hess Corp., and a $6.3 billion deal for Denver-Julesburg Basin heavyweight PDC Energy Inc.

“We’re maintaining capital discipline in both traditional and new energies,” CEO Mike Wirth said. “These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders.”

The PDC transaction, accounted for in...