Conoco is getting Marathon for about $20/boe proven reserves. A bargain. If Esso ever decides to let our deal go through with the dopes at HESS, we will pay about $40/boe (not including whatever we have to pay Esso...).
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Regardless, as a Retiree I still own CVX stock and it’s great dividends. Worked 36 years at the Company starting in 1981. You do the math at how low my purchase of CVX Stock. Still sitting pretty at $160 a share. Chevron is not going anywhere no matter the opinions of The Lay-off website. Retired in 2017. Dividends alone pay for my gas although I reinvest them. Good luck to current employees. Sounds like a lot has changed. But it’s still Chevron. One of the most iconic Emblems.
Last two responses hit it on the nose. Going back nearly 40 years (!!!), Gulf - Tengiz -Texaco - Unocal - Atlas - Noble - (Hess?), Chevron has a long history of buying reserves rather than finding them (only exceptions are Australia 1990s and GOM 2000s). Clearly that's the business model going back several CEOs, if it wasn't for Chevron stumbling into the Permian 10 years ago, we'd really be in sad shape. Future strategy seems to be focused on cashflow through draining Permian/Tengiz/Australia and kicking the can down the road with an acquisition every 4 years.
We have been in a going out of business mode for a while. Our five-year reserve replacement is only 82% (a fact hidden in the 2023 report which stretches back to 10-year figures for something positive). But if you remove PDC and Noble reserve purchases, our five-year reserve replacement is about 30%. At that rate we go out of business in a decade or less. We must keep purchasing companies with around 1 bboe reserves annually. When we run out of companies to buy, it's over.
In 2007 we reported 26 MCPs in flight totaling about 3 million boepd capacity. Last year we reported 9 MCPs with about 500 boepd capacity. Follow the oil.
If you don’t count PDC Energy, our 2023 reserve replacement was around 20%, which is worst in the industry. If we don’t close the HESS deal or another one this year our figures will be horrific. Management seems asleep at the wheel on reserve adds. This would be the equivalent of say Netflix adding 2 million new customers but losing 10 million existing customers.
They won't admit it, but MW and the gang really wanted Anadarko, Noble was just a carnival consolation prize. While SR drooled over Hess and its Guyana reserves, Exxon picked up much-better-fit Pioneer Resources. Now Marathon (not exactly an industry spring chicken) is gone. If Exxon succeeds in stymying Hess, Chevron will be left with rapidly declining global reserves, rapidly declining Permian production, and no opportunity for production or reserves growth through acquisition.
It is part of Esso's strategy to keep our hands tied as the last great company consolidation occurs. Esso will buy Conoco next year. Everyone else will go shopping while we cry about Hess into 2025 or 2026.
Could have been us except our money is tied up elsewhere.
I am lurking around to see if proper usage of this is done. I am that kind of a Karen.
When I want to have a high level discussion about mergers and acquisitions in the O&G industry I head straight to the CVX layoffs.com site, that's what I do, I don't know about you guys!
Doesn't matter we got the better CEO pay.
Our deal appears dead…