Chevron CEO Mike Wirth Says We Have Advantaged Inventory With Around 75% Locations At A Break Even Or Below $50; Says We Will See Shutdown At Pasadena Refinery In Current Quarter; Capital Spending In Permian Shale Basin Will Likely Peak This Year; Hess Deal Closing Conditions Requires End To Arbitration; CFO Says Expects To See Benefit Of New Cost Cutting Program To Appear In 2027
Portfolio Pulse from Benzinga Newsdesk
Chevron's CEO Mike Wirth discussed the company's advantaged inventory, with 75% of locations breaking even at or below $50. The Pasadena refinery will shut down this quarter, and capital spending in the Permian Basin is expected to peak this year. The Hess deal requires arbitration to end, and cost-cutting benefits are expected by 2027.
November 01, 2024 | 3:42 pm
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Chevron's CEO announced that 75% of their locations have a break-even point at or below $50, indicating strong operational efficiency. The Pasadena refinery will shut down this quarter, and capital spending in the Permian Basin is expected to peak this year. The Hess deal is contingent on the end of arbitration, and cost-cutting benefits are expected by 2027.
The news highlights Chevron's operational efficiency and strategic decisions, such as the shutdown of the Pasadena refinery and peak capital spending in the Permian Basin. These factors are crucial for investors, but the overall impact on stock price is neutral in the short term as the benefits and changes are expected in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100