Chevron Exits Myanmar's Yadana Gas Field: Report
Portfolio Pulse from Lekha Gupta
Chevron Corporation (NYSE:CVX) has officially exited Myanmar's Yadana gas field, redistributing its 41.1% stake to PTT Exploration and Production and Myanma Oil and Gas Enterprise. This move comes after Chevron's 2021 announcement to leave Myanmar due to violence and human rights abuses following the 2021 coup. The Yadana field, a significant gas producer, has been a point of contention amid Myanmar's ongoing crisis. Chevron's exit aligns with its commitment to an orderly withdrawal, reflecting on international law and sanctions. Investors can track Chevron's performance through SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE).
April 09, 2024 | 11:58 am
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NEUTRAL IMPACT
Chevron exits Myanmar's Yadana gas field, redistributing its 41.1% stake. This move follows Chevron's commitment to human rights and international law.
Chevron's exit from the Yadana gas field is a significant corporate action, reflecting its stance on human rights and legal compliance. While the move aligns with its ethical commitments, the direct financial impact on the stock may be neutral in the short term, as the market has likely already adjusted to the news of Chevron's planned exit since 2021.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
iShares U.S. Energy ETF (NYSE:IYE) offers another avenue for investors to track Chevron's stock performance.
Similar to XLE, IYE's performance may be indirectly influenced by Chevron's corporate actions due to its inclusion in the ETF. However, the direct short-term impact of Chevron's Myanmar exit on IYE is expected to be limited, reflecting the ETF's broad exposure to the U.S. energy sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
TotalEnergies SE (NYSE:TTE) also exited the Yadana gas field in 2022, following Chevron's ethical stance against Myanmar's junta.
TotalEnergies' exit from the Yadana gas field, similar to Chevron's, reflects a corporate commitment to ethical practices and human rights. While this move is significant from a corporate responsibility perspective, its direct short-term financial impact on TTE's stock is likely neutral, as the market has had time to absorb the news of its exit.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Investors can gain exposure to Chevron's stock performance through SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).
XLE, as an ETF that includes Chevron among its holdings, may see indirect effects from Chevron's actions. However, the short-term impact of Chevron's exit from Myanmar on XLE's performance is likely to be minimal, given the diversified nature of the ETF's holdings across the energy sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50