• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 21 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 12 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Energy Armageddon
  • 6 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 7 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 7 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 22 hours Wind droughts
  • 8 days Goldman Betting on Cryptocurrencies
  • 11 days Сryptocurrency predictions
How Much Has Harvard’s Fossil Fuel Divestment Cost It?

How Much Has Harvard’s Fossil Fuel Divestment Cost It?

Harvard University made headlines when…

Oil Prices Bounce Back As Sentiment Shifts

Oil Prices Bounce Back As Sentiment Shifts

Oil prices rebounded on Tuesday…

Chevron Slashes Capex Again To Protect Dividend In Oil Price Rout

U.S. oil supermajor Chevron Corporation (NYSE: CVX) reduced its capex guidance for the second time in two months to protect its dividend, as it warned on Friday that its financial results would continue to be depressed as long as oil prices stay low.  

Chevron said in its Q1 earnings report today that it is further reducing its 2020 capital expenditure (capex) guidance by up to $2 billion to $14 billion.

In March, Chevron had already slashed capital expenditures, especially in the Permian, and said it was suspending its share buyback program. Chevron announced in March a cut to its 2020 capital spending plan by $4 billion, or by 20 percent, to $16 billion, to protect its dividend and balance sheet in one of the worst oil price routs in recent memory. Of the $4-billion initial capex cut, Chevron will slash $2 billion across upstream unconventionals, primarily in the Permian Basin. 

On the Q1 earnings front, Chevron reported on Friday sales and other operating revenues at $30 billion, down from $34 billion for Q1 2019.

Earnings rose to $3.6 billion, from $2.6 billion for Q1 last year, but this past quarter’s earnings were favorably impacted by a gain of $240 million from the sale of upstream assets in the Philippines, favorable tax items of $440 million in international upstream, and foreign currency effects which increased earnings by $514 million.

“Financial results in future periods are expected to be depressed as long as current market conditions persist,” the supermajor said in a statement.

The reduced capex, the previously announced suspension of share buybacks, and additional asset sales “are consistent with our longstanding financial priorities: to protect the dividend; to prioritize capital that drives long-term value; and to maintain a strong balance sheet,” said Michael Wirth, Chevron’s chairman of the board and chief executive officer.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Maxander on May 04 2020 said:
    Chevron should aggressively cut Capex by $4-5 bn. The present $2 bn Capex cut may not be enough for medium to long term.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News