Chevron, A Dividend Champion In Trouble: What Is The Impact Of The Ecuadorian Judgment?
Caiman Valores • 52 Comments
Caiman Valores • 52 Comments
Dec. 5, 2013, 8:38 AM
- More than two dozen of the biggest U.S. corporations, including the five major oil companies - Exxon (XOM), ConocoPhillips (COP), Chevron (CVX), BP and Shell (RDS.A, RDS.B) are planning their future growth on the expectation that the government will force them to pay a price for carbon pollution as a way to control global warming, NYT reports.
- Both supporters and opponents of action to fight global warming say the development is significant because businesses that chart a financial course to make money in a carbon-constrained future could be more inclined to support policies that address climate change.
- “Companies see that the trend is inevitable," says the president of environmental data company CDP.
Dec. 4, 2013, 10:57 AM
- Iran wants U.S. companies such as Chevron (CVX) and ConocoPhillips (COP) to develop its oil and gas fields, the country's oil minister says, perhaps signaling a readiness to court American business amid a thaw in relations with the West.
- Western companies are still banned by their governments from investing in Iran's oil and gas fields, and this is the first time Iran has named particular U.S. companies it might like to see enter the country.
- In addition to CVX and COP, the minister mentioned European giants BP, Royal Dutch Shell (RDS.A, RDS.B), Total (TOT), Statoil (STO) and Eni (E), and says he is talking to some of them but doesn't say which.
- Though sanctions forced Western companies out of Iran, many also complained of Iran's tough contracts which gave some production from a field but no stake in it.
Dec. 2, 2013, 9:55 AM
- Chevron (CVX) says it has resumed its search for shale gas in eastern Romania, despite opposition from local residents.
- In October, CVX won approval to drill exploratory wells in the eastern part of the country but had to halt work soon after as local residents blocked access to the site.
- Some locals oppose the project due to environmental risks caused by fracking, but CVX says it does not plan to use fracking under its five-year exploration program.
Nov. 26, 2013, 9:42 AM
- The spectacular and seemingly never-ending RICO trial between Chevron (CVX -0.2%) and environmental lawyers took a final twist on the last day of testimony when the oil major alleged the Republic of Ecuador helped cover up false testimony.
- Biting accusations have flown back and forth for the duration of the trial.
- Closing arguments in the contentious case start today and after post-trial briefs are filed a decision could occur sometime in the next few months.
Nov. 25, 2013, 4:03 PM
- The most popular shorts according to Goldman's Hedge Fund Monitor which analyzes the positions of 783 funds with $1.6T in assets (in reverse order, i.e. the last in this list is the most heavily shorted): SYY, KO, TGT, BMY, SNDK, UPS, SLB, GE, CVX, PFE, CAT, COP, EMC, PG, NFLX, WMT, JNJ, DIS, CRM, VZ, IBM, XOM, T, GILD, INTC.
- A quick scan finds Netflix making both the top 25 list of most heavily shorted and the top 20 list of most concentrated longs. List of 20 longs is here.
Nov. 22, 2013, 5:56 PM
- OMV (OMVJF, OMVZY) had "been vocal" in pressing its operatorship partner Chevron (CVX) to put the U.K.’s Rosebank project on hold pending a review of the development’s scope and costs.
- "We have been telling Chevron we think this can be better. Chevron has been managing this out of Houston, probably not the best decision," OMV CFO David Davies says; CVX was focused on other projects, and Rosebank was less material, but it is a critical project for OMV, especially after it recently acquired an additional 30% stake from Statoil to take its total stake to 50%.
- CVX says a final investment decision will come next year on the field estimated to hold 240M barrels of recoverable oil - a lot of oil, but the company may feel it is relatively small for the billions of dollars in further investments needed to produce it.
Nov. 22, 2013, 12:27 PM
Nov. 22, 2013, 10:06 AM
- Chevron (CVX -0.5%) suspends investment on its $10B Rosebank oil project, one of the largest new prospects in the U.K. North Sea, saying it isn't economic to proceed due to rising costs in the sector.
- CVX says it is still working with partners OMV and Dong Energy to improve the economics of the project, and expects to make a final investment decision in 2014.
- If Rosebank doesn't proceed, it would be a major blow to U.K. ambitions to ramp up its North Sea oil and gas output; Statoil (STO) said earlier that it was delaying investment in the $6B-$7B Bressay field, also in the U.K. sector of the North Sea.
Nov. 21, 2013, 5:38 PM
- Turkey's government reportedly is preparing to set up an escrow account at a state-owned Turkish bank to collect proceeds from Kurdish energy sales, a move that would solve the main problem Iraqi Kurds face in cashing in on their abundant energy resources: paying firms such as Exxon (XOM) and Chevron (CVX).
- Though a quick resolution with the Iraq central government still looks difficult, the Kurdish energy minister says the Kurds wouldn't touch their net revenue until they hammered out a deal where profits could be merged with gains from all Iraqi oil shares and then redistributed.
- Until recently, the U.S. had resisted a Kurd-Turkey deal for fear of antagonizing Baghdad, but the progress has Washington's tone shifting.
Nov. 20, 2013, 10:20 AM
- Attorney Steven Donziger testified yesterday that he would “never” have bribed a judge to rule against Chevron (CVX) in the environmental lawsuit over decades-old pollution from oil exploration in Ecuador’s Amazon Basin.
- But he also said, in his second day on the stand in a racketeering trial brought by CVX over the case, that his team representing Ecuadorean villagers employed methods in the litigation that would have raised eyebrows in the U.S., such as meeting privately with a supposedly independent court-appointed expert and drafting sections of a report signed by that expert that recommended billions of dollars in damages.
- Over the course of the trial, Donziger's defense team has repeatedly said Chevron's lawyers engaged in similar conduct.
Nov. 15, 2013, 2:22 PM
- “When Warren Buffett gives his seal of approval to any company, that is never a bad thing,” so Exxon Mobil (XOM +1.8%) powers within reach of its 52-week high after Berkshire Hathaway added a 40M-share position.
- But Buffett's style of value investing may not work so well for the rest of us, even for those looking for a big defensive energy stock; Brian Youngberg of Edward Jones prefers Chevron (CVX +0.2%), which he says is more attractively priced relative to XOM, offers a higher dividend yield, is more profitable per barrel, and has better potential for production volume growth.
- Buffett's underpinning thesis for XOM purchase looks similar to his 2011 IBM purchase - difficulty growing revenues but returning a significant amount of cash to shareholders - but investors who blindly followed Buffett into Big Blue in 2011 have significantly underperformed.
Nov. 15, 2013, 10:27 AM
- One worker was killed due to a furnace fire overnight in the cracking 2 area at Chevron's (CVX -0.2%) 330K bbl/day Pascagoula refinery on Mississippi's Gulf coast; the cause of the explosion is not known, but the company says there is no danger to the community.
- Meanwhile, hundreds of north Texas residents evacuated after a Chevron pipeline explosion hope to return home when the fire burns itself out; the incident happened after a drilling crew punctured the pipeline, but no one was hurt.
Nov. 14, 2013, 12:47 PM| Nov. 14, 2013, 12:47 PM | 4 Comments
Nov. 13, 2013, 7:43 AM
- The Nexen Canadian subsidiary of China's Cnooc (CEO) is awarded exclusive rights to proceed with a proposed terminal to export liquefied natural gas from Canada's Pacific coast.
- Cnooc is teaming up with Japanese oil explorer Inpex and construction engineering firm JGC to build the Aurora LNG export terminal at Grassy Point in British Columbia.
- In winning the exclusive rights, Cnooc edges out other possible suitors for the remote site, including Exxon Mobil (XOM) and Australia's Woodside Petroleum (WOPEF, WOPEY); major energy companies such as Chevron (CVX) and Royal Dutch Shell (RDS.A, RDS.B) also are eyeing gas export projects along the B.C. coast.
Nov. 13, 2013, 4:37 AM
- "[It] is as illegitimate and unenforceable today as it was when it was issued two years ago," Chevron (CVX) says, apparently unimpressed with the Ecuador National Court of Justice's move to reduce the amount the company must pay to rectify alleged pollution of the nation's rainforests to $9.5B from $19B.
- The case has turned into a veritable sideshow over the years, with CVX suing the Ecuadorean plaintiffs' lawyer for racketeering in New York federal court. For more on this, see here.
- Despite CVX's criticism, a spokesperson for the plaintiffs calls the ruling "fair and a clear victory for environmental justice."
Nov. 12, 2013, 9:02 AM
- Petrobras (PBR) says an offshore platform started crude oil production at the Papa Terra field off Brazil, one of nine new units coming onstream this year as the company attempts to boost flagging production.
- PBR has struggled with stagnant crude production of ~2M bbl/day in recent years because of declining productivity at older offshore fields and maintenance shutdowns at aging platforms.
- The P-63 floating platform has installed capacity to produce 140K bbl/day of oil and 1M cubic meters of natural gas; PBR operates the field with a 62.5% stake, while Chevron (CVX) holds the remaining 37.5%.
Chevron Corp. is an integrated energy company, which provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, power generation and energy services.... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United States
Other News & PR