Daily Management Review

Oil giant sets to get rid of multibillion-dollar assets in the U.S.


Chevron plans to get rid of its oil and gas assets in the Eagle Ford oil fields in South Texas in the United States. The company intends to sell them for a multibillion-dollar sum, writes Reuters.

Jonathan McIntosh
Jonathan McIntosh
According to documentation with which the agency became acquainted, the sum amounts to about 3.8 billion dollars. In papers of the company, supplementing the report for the year 2020, assets in the area were among the key ones.

At the moment, according to The Wall Street Journal, Chevron is also preparing to defend itself from activist investors, one of which had previously interfered in the affairs of rival Exxon Mobil. According to the Journal, Chevron executives met with representatives of hedge fund Engine No. 1, sharing with them plans to reduce emissions. Chevron was forced to set specific targets for indirect emissions by its shareholders.

Exxon Mobil shareholders backed Engine No. 1's ideas in May, causing several of its nominees to go to the board of directors. The fund has $54 million worth of stock in the company. The company spent $35 million to fight its activism, but eventually conceded defeat. As a result, the company’s managers are now faces a new challenge having to seriously discuss the idea of achieving net zero emissions.

source: reuters.com, wsj.com