How low will it go, lost 3% today? Wait till our next quarterly report. Exxon has already announced it expects slightly more than 4 billion in cash even if oil goes down 5% from current levels and lost 2 percent today. It is dam scary to see what Chevron reports in 2 months! They have to have EVERYTHING on the table.
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Well, Milking Sausages, I agree it would be in Chevron's best interest to defend those dividends. Logically, it should be the last lever to pull. But sincerely, I think it's a sinking ship at this point. The institutional investor is growing more convinced everyday now that it's only a matter of time before the company announces a dividend cut. They all know this will cause a panic, and they are starting to exit quietly one by one. I can only hope it doesn't happen, but I rely on my instinct over hope always. Don't be too long CVX, my friend. That sausage of yours will become blood sausage if you do.
@Anonymous138788 I agree. The dividend will be the absolute last lever.
Scary situation..
Sorry I misspelt dividends in my previous post. I was in a hurry. I know one poster started a thread on this very issue.
I think they will protect the divodend at all costs. All else will be on the table
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Reduced allowances for expats
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Fire 30 to 40% of the workforce with severance capped at 12 weeks
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Reduced or no pension accrual going forward
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A 20% paycut for everybody across the board
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Delay some MCPs
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Reduce 401k match going forward
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Consolidate all staff in 2 buildings in Houston and save on office space.
... There could be many more use your imagination
The Ugly Truth I could not have said it better.
WTI closed down today, almost breaking below 40. When it does into the 30's (and I think it will), this will unleash a panic like you can't imagine for all energy commodity businesses. CVX stock could likely descend to a low of around $72.
OP, You are correct to say "They have to have everything on the table". Let me offer to the readers what's on the table: More layoffs for employees and contractors, More asset sales, New bond sales (increased debt), Furloughs to certain employees, Dividend reduction, Changes to the pension plan (going forward). These are the main ones, but also more subtle changes will be considered. Yes, it's very scary. Everything will proceed as the price of oil goes down and cash flow is problematic. All this must be carried out carefully to control, to the best extent, the bailing of investors jumping ship out of CVX to invest elsewhere.