Chevron Corp (CVX)

[DewDiligence]

XOM seeks arbitration wrt HES Guyana stake:

https://finance.yahoo.com/news/1-exxon-signals-potential-counter-180644595.html

[DewDiligence]

CVX-HES merger has a possible glitch:

https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0000093410/000119312524046223/d576159ds4.htm (p.80)

Hess Guyana Exploration Limited (HGEL), a wholly owned subsidiary of Hess, is party to an operating agreement (the Stabroek JOA) with affiliates of Exxon Mobil Corporation (Exxon) and China National Offshore Oil Corporation (CNOOC), which governs the rights and obligations of such parties (the Stabroek Parties) with respect to the exploration and development of their respective interests in the Stabroek Block offshore Guyana (the Stabroek Block).

The Stabroek JOA contains a right of first refusal (the Stabroek ROFR) provision that, if applicable to a change of control transaction and properly exercised, provides the Stabroek Parties with a right to acquire the participating interest in the Stabroek Block held by the Stabroek Party subject to such transaction (at a value that is based on the portion of the value of the change of control transaction that reasonably should be allocated to such participating interest and is increased to reflect a tax gross-up) only after, and conditioned on, the closing of such transaction.

Chevron and Hess believe that the Stabroek ROFR does not apply to the merger due to the structure of the merger and the language of the Stabroek ROFR provisions. Following the announcement of the merger, Exxon and CNOOC informed Hess and Chevron that they disagree with this view and believe the Stabroek ROFR applies to the merger.

Hess, Chevron, Exxon and CNOOC have been engaged in constructive discussions regarding the Stabroek ROFR, and Chevron and Hess believe these discussions will result in an outcome that will not delay, impede or prevent the consummation of the merger. In the event such discussions do not result in an acceptable resolution, either Hess or Chevron could elect for HGEL to pursue arbitration to resolve the matter.

If the discussions with Exxon and CNOOC do not result in an acceptable resolution and arbitration (if pursued) does not result in a confirmation that the Stabroek ROFR is inapplicable to the merger, then there would be a failure of a closing condition under the Merger Agreement, in which case the merger would not close and, pursuant to the terms of the Stabroek JOA, Exxon and CNOOC would cease to have rights under the Stabroek ROFR with respect to the merger. In that event, Hess would remain an independent public company and would continue to own its participating interest in the Stabroek Block.

Based on their discussions with Exxon and CNOOC and the terms of the Stabroek JOA, Chevron and Hess do not believe there is any material likelihood that the circumstances described in this paragraph will occur.

Really? I find it hard to accept this (bottommost) assertion at face value.

HES is -4% in AH trading.

[DewDiligence]

CVX 4Q23 results:

https://finance.yahoo.com/news/chevron-reports-fourth-quarter-2023-111500530.html

The 8% increase in the dividend to an annualized $6.52, which is now taking effect, was pre-announced in Oct 2023 (#msg-173075913).

[1984ISHERE]

Moving alone nicely

[1984ISHERE]

Great adds

[DewDiligence]

CVX issues_2024 cap-ex guidance—2/3_of upstream in US:

https://finance.yahoo.com/news/chevron-announces-16-billion-2024-221500571.html

Upstream spending in 2024 is expected to be about $14 billion. Of this planned expenditure, two-thirds is allocated to the United States, including approximately $6.5 billion to develop Chevron’s U.S. shale and tight portfolio, of which around $5 billion is planned for Permian Basin development. About 25 percent of U.S. upstream capex is planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.

Plainly, CVX is avoiding undue geopolitical risk. CVX’s Tengiz production in Kazakhstan and its newfound interest in Guyana (via the Hess acquisition) incur ample risk already.

[Jack_Bolander]

pack - It has been a while. I'm glad to see you still guessing.

You said buy CVX a month ago ? I'm glad I shorted you advice.

You may want to look for a buy signal in December or January though.

How'd you do with your WORSTPORT and CLNE bets ?

[DewDiligence]

Barron’s likes CVX on valuation:

https://www.barrons.com/articles/buy-chevron-stock-price-pick-1783ee4a

[DewDiligence]

CVX 3Q23 CC transcript:

https://www.fool.com/earnings/call-transcripts/2023/10/27/chevron-cvx-q3-2023-earnings-call-transcript/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

[trendzone]

CNBC numb nuts pump boy Tommy boy Lee, on right now, still has to pump even after getting his butt kicked pretty badly, he just can't admit he's been wrong.

[pack10]

good time to buy, imo

[DewDiligence]

CVX 3Q23 results…

PR:
https://chevroncorp.gcs-web.com/static-files/a0d8dc4d-00e7-42a7-861f-601d8ab862f2

CC slides (with interspersed prepared remarks):
https://chevroncorp.gcs-web.com/static-files/1f105193-abbf-4315-81a7-45958fc9cd16

Note: Reported results and guidance will not include contributions from HES until the merger closes.

[1984ISHERE]

Great news today, might no reflect in today's tape, but will pay dividends for the next decade+

[DewDiligence]

CVX raising dividend by 8% in Jan 2024:

https://www.chevron.com/newsroom/2023/q4/chevron-announces-agreement-to-acquire-hess

In January, Chevron expects to recommend an increase to its first quarter dividend per share of 8% to $1.63, which will be subject to the approval of the Chevron Board of Directors.

At the current share price (~$163), the new annualized payout of $6.52 is a yield of 4.0%.

[DewDiligence]

The deal value is $60B, including ~$7B assumption of debt.

[DewDiligence]

CVX-HES CC slides with interspersed prepared remarks:

https://chevroncorp.gcs-web.com/static-files/dd2d732f-6398-4e51-a339-dce610e93959

[DewDiligence]

CVX-HES PR:

https://www.chevron.com/newsroom/2023/q4/chevron-announces-agreement-to-acquire-hess

[DewDiligence]

CVX acquires HES for $171/sh in stock—in stock—a 5% premium to Friday’s close.

[Lowjack]

Countersue for malicious prosecution with defunct data and models!
https://www.cnbc.com/2023/09/18/california-sues-chevron-exxon-oil-giants-on-climate-change-deception.html

Stop putting corn in my fuel! It's lowering my gas mileage!

[1984ISHERE]

Sorry but not sorry the truth offends you

[Hasy1]

What a crock. You are on block. You have nothing but the Republican line to say.

[1984ISHERE]

The attack on the industry is just even more reason to be Bullish long term, because most everyday people are sick of this
BS

National Average for Gas was under $2 a gallon and immediately started rising after the "election results" came in

The current Administration obviously is corrupt and on the take

If people wake up, a new administrations should reverse the damage day 1

Right now Agenda seems to weaken US energy Independence but its all starting to back fire

Last weeks news is a desperate attempt by the Corrupt Biden Crime Family,
The same family who drained the strategic reserves and Oil then was transferred to China company with Hunter Biden connections ???
https://www.newsmax.com/us/alaska-joe-biden-oil/2023/09/07/id/1133534/

[crudeoil24]

Next Republican president will support oil companies and Petroleum pipelines. Chevron will be a beneficiary.

[1984ISHERE]

Great company good for the portfolio

[crudeoil24]

Exactly! Chevron provides for so many applications. Marine , Industrial, Agricultural, Fleet, & Automotive. Compressor oil, Vacuum Pump oil, Food grade oils & Greases, Turbine oils, Refrigeration oils, Biodegradable oils, Cutting oils, Hydraulic oils.

Oil is here to stay. Tell President Biden that the huge wind turbines have gear boxes . Many holding 80 gallons of Chevron Gear Oil.

[crudeoil24]

Oil Rises After Saudi Arabia Extends Output Cut -- WSJ
Today 10:03 AM ET (Dow Jones)Print
By Joe Wallace


Saudi Arabia said it is extending its oil production cut, sending crude prices higher in a move that threatens to add fresh fuel to inflation.

Riyadh began to throttle daily crude output (https://www.wsj.com/articles/saudi-arabia-some-opec-members-clash-over-oil-production-quotas-87f43f0c) by a million barrels in July. It has already extended that cut by a month through August, taking daily crude output to nine million barrels. On Thursday, the Ministry of Energy said the cut will remain in place through September.

-- Futures on Brent crude, the global benchmark, rose 0.5% to $83.61 a
barrel.

-- They have jumped 12% over the past month, driven up by the Saudi cuts as
well as export restrictions by Russia.
The rise has boosted gasoline prices at the pump (https://www.wsj.com/articles/oil-prices-perk-up-as-recession-worries-ebb-and-supply-tightens-fb58bf7d) just as the Federal Reserve is expected to pause its efforts to rein in inflation by raising interest rates. Falling energy prices had been helping cool inflation.

Saudi Arabia's energy ministry said the latest extension is in addition to a previous output cut that was announced in April and is due to remain in place through December next year (https://www.wsj.com/articles/opec-members-set-to-cut-production-voluntarily-761602d1).Oil Rises After Saudi Arabia Extends Output Cut -- WSJ
Today 10:03 AM ET (Dow Jones)Print
By Joe Wallace


Saudi Arabia said it is extending its oil production cut, sending crude prices higher in a move that threatens to add fresh fuel to inflation.

Riyadh began to throttle daily crude output (https://www.wsj.com/articles/saudi-arabia-some-opec-members-clash-over-oil-production-quotas-87f43f0c) by a million barrels in July. It has already extended that cut by a month through August, taking daily crude output to nine million barrels. On Thursday, the Ministry of Energy said the cut will remain in place through September.

-- Futures on Brent crude, the global benchmark, rose 0.5% to $83.61 a
barrel.

-- They have jumped 12% over the past month, driven up by the Saudi cuts as
well as export restrictions by Russia.
The rise has boosted gasoline prices at the pump (https://www.wsj.com/articles/oil-prices-perk-up-as-recession-worries-ebb-and-supply-tightens-fb58bf7d) just as the Federal Reserve is expected to pause its efforts to rein in inflation by raising interest rates. Falling energy prices had been helping cool inflation.

Saudi Arabia's energy ministry said the latest extension is in addition to a previous output cut that was announced in April and is due to remain in place through December next year (https://www.wsj.com/articles/opec-members-set-to-cut-production-voluntarily-761602d1).

[DewDiligence]

CVX 2Q23 CC transcript:

https://finance.yahoo.com/news/q2-2023-chevron-corp-earnings-052612056.html

[DewDiligence]

CVX pre-announces 2Q23 results:

https://finance.yahoo.com/news/chevron-announces-second-quarter-2023-200000056.html

• Reported earnings of $6.0 billion; adjusted earnings of $5.8 billion

• Record Permian Basin production, 11 percent higher than the year-ago period

• Record shareholder distributions of $7.2 billion

• PDC Energy, Inc. acquisition expected to close in August 2023

CVX’s full 2Q23 earnings release is on 7/28/23.

[1984ISHERE]

Add on red days LT

[1984ISHERE]

Nice day here

[1984ISHERE]

Good news out of Saudi

[DewDiligence]

CVX-PDCE addendum—For CVX shareholders, the combined effect of CVX's recent share buyback and its all-stock acquisition of PDCE is as though CVS acquired PDCE for cash. However, for PDCE shareholders, the all-stock deal is non-taxable, which makes the deal considerably more attractive than a cash buyout for longtime PDCE shareholders with a low cost basis. This, in turn, allowed CVX to do a deal at a lower price.

[DewDiligence]

CVX acquisition of PDCE looks like a steal:

https://www.wsj.com/articles/why-big-oil-likes-small-deals-4d5afa8

[DewDiligence]

CVX acquires PDCE for $72/sh in_stock—an_11%_premium_to_Friday's_close:

https://finance.yahoo.com/news/chevron-announces-agreement-acquire-pdc-120000591.html

Chevron Corporation announced today that it has entered into a definitive agreement with PDC Energy, Inc. (NASDAQ: PDCE) to acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion, or $72 per share. Based on Chevron’s closing price on May 19, 2023 and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value, including debt, of the transaction is $7.6 billion.

… PDC brings strong free cash flow, low breakeven production and development opportunities adjacent to Chevron’s position in the Denver-Julesburg (DJ) Basin, as well as additional acreage to Chevron’s leading position in the Permian Basin… [The transaction] increases Chevron’s proved reserves by 10% at an acquisition cost under $7 per barrel of oil equivalent (BOE).

• DJ Basin – 275,000 net acres adjacent to Chevron’s existing operations that add over 1 billion BOE of proved reserves in highly economic locations and enable capital and operational synergies.

• Permian Basin – 25,000 net acres that are held by production and will be integrated into Chevron’s existing capital efficient development operations.

[DewDiligence]

CVX 1Q23 CC transcript:

https://www.fool.com/earnings/call-transcripts/2023/04/28/chevron-cvx-q1-2023-earnings-call-transcript/

[DewDiligence]

CVX 1Q23 results…

PR:
https://chevroncorp.gcs-web.com/static-files/85f1dee5-e97c-41d9-aa3b-c4428af00947

CC slides (with interspersed prepared remarks):
https://chevroncorp.gcs-web.com/static-files/6cffc6b0-2cb3-46e6-a54e-d11ee7491737


CVX repurchased $3.75B of stock in 1Q23 and expects to repurchase $4.38B in 2Q23 (commencing implementation of the new $75B buyback authorization).

[crudeoil24]

Oil is here to stay. Tell President Biden that the huge wind turbines have gear boxes . Many holding 80 gallons of Chevron Gear Oil.

[DewDiligence]

California will cap profit margins on gasoline refining:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171571186

[pack10]

With the dip on the open, did CVX buy to push it back up. Wouldn't be at all
surprised if they did.

[DewDiligence]

They will, in due course. It's simple arithmetic.

[Trader Al]

The buyback did nothing for the stock price.

[DewDiligence]

CVX Investor Day items….

PR:
https://chevroncorp.gcs-web.com/static-files/4399ed17-c1bf-4dc7-a5d1-6e83d384ee35

CC slides with interspersed prepared remarks:
https://chevroncorp.gcs-web.com/static-files/991f1a75-8b8d-438a-be70-176be5f76446

The big news is that CVX plans $17.5B of share buybacks during the four quarters starting 2Q23 (the pre-existing buyback authorization ends 3/31/23)—and is guiding to $10-20B of annual buybacks thereafter.

[DewDiligence]

100K bbl/month is more than CVX said was doable this soon. Looks like they wanted to under-promise and over-deliver.

[crudeoil24]

U.S. oil producer Chevron Corp is on track to ship more than 100,000 barrels per day (bpd) of Venezuelan crude to the United States this month under a license from the U.S. Treasury Department, according to shipping documents and data seen by Reuters.

[DewDiligence]

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171138600

[DewDiligence]

CVX 4Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2023/01/27/chevron-cvx-q4-2022-earnings-call-transcript/

[DewDiligence]

CVX posts 4Q22 results—capping record-high year in profits and cash flow…

PR:
https://www.chevron.com/-/media/chevron/stories/documents/4Q22-earnings-press-release.pdf

CC slides (with interspersed prepared remarks):
https://chevroncorp.gcs-web.com/static-files/79dc3c75-8af7-4ead-ad6a-b5bb4d01fcd7

[DewDiligence]

Indeed. As far as I know, only AAPL has had a bigger one.

[UpTickMeA$AP]

$75 billion. That's a buyback!

[DewDiligence]

CVX boosts buyback authorization and raises dividend:

https://finance.yahoo.com/news/chevron-increases-quarterly-dividend-announces-213000580.html

A new $75B buyback authorization starts on 4/1/23 and has no expiration date. CVX had a pre-existing buyback authorization of $25B that runs until 3/31/23; hence, the actual increase in the buyback authorization is $50B plus whatever amount CVX repurchases during 1Q23, which may be somewhat less than $75B.

The new annualized dividend of $6.04 (up from $5.68) is a yield of 3.4% at the current share price ($179.08).