Chevron Exploring Options To Sell East Texas Assets: Report
Portfolio Pulse from Lekha Gupta
Chevron Corp (NYSE:CVX) is considering selling its East Texas assets, which include approximately 70,000 net acres in the Haynesville shale formation. Development of these assets was halted earlier this year. The company is exploring various options, including a sale or a partnership with regional producers. This move is part of Chevron's strategy to offload assets worth up to $15 billion over the next five years following its recent acquisitions, including Hess Corp (NYSE:HES) for $53 billion and PDC Energy for $7.6 billion. These acquisitions added 500,000 barrels of oil and gas per day to Chevron's U.S. shale portfolio. Chevron's Q3 FY23 results showed total revenues of $54.1 billion, surpassing expectations, but an adjusted EPS of $3.05, which missed the consensus. CVX shares are down 0.21% in premarket trading.
November 15, 2023 | 2:11 pm
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NEUTRAL IMPACT
Chevron is exploring the sale of its East Texas assets as part of a broader divestment strategy. The company's recent acquisitions and Q3 financial results may influence investor sentiment.
The news of potential asset sales could be seen as a strategic move to streamline operations and focus on more profitable ventures, which might be viewed positively by investors. However, the recent EPS miss could temper enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Hess Corp was recently acquired by Chevron in a $53 billion all-stock transaction, which is part of Chevron's expansion strategy.
While Hess Corp is mentioned as part of Chevron's acquisition strategy, the direct short-term impact on HES stock is not clear from the article, as the focus is on Chevron's potential asset sale and recent financial results.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50