Chevron recently announced the divestment of 64,500 net acres in the Central Basin Platform of the Permian Basin. This deal will offload 5% of Chevron Permian properties. This is in sync with plans to monetize 200,000 non-core acres in the Permian Basin. This agreement is in line with Chevron's strategy to improve cash flow in 2017. Chevron is focusing on divestment opportunities to exit non-competitive projects with cost and capex reductions which will provide a more competitive and leaner business model. The divestment goal for 2017 is $10 billion. In the first 6 months of 2017, Chevron generated $8.9 billion operating cash flow shelled out around $12.9 billion in capex and dividends. The company is seeking avenues like asset sales to plug the deficit. My own thoughts on this: 1) This is the legacy of JW, 2) Prepare for more substantial lay offs.
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Get a real buzz out of backstabbing my fellow workers. Make hay while the sun shines.
-9pru, You’re right. What your manager may have told you or insinuated about being rehired by Chevron when times get better is a farce, just like nearly everything HR and upper management has ever promised you. Their gratification is only for today. Tomorrow you are old news.
For your manager to tell you that you would be rehired, was just a ploy to make himself feel better and maybe easier for you. Promote yourself on linkin and indeed.com. Use that money chevron gave for classes and use every penny. Everyone that was laid off or put in for retirement, use the money. It is free college, if you don't want to take college classes use it for something you are interested in. Use it to your advantage. There are alot of IT positions everywhere and in all types of companies. My understanding is that these employees aside from what Chevron wants to keep will be going with them. They are also hiring right now.
@6zct - No, they are following the typical O&G strategy of buy high / sell low.
@6kii, I empathize with you. Having 3 degrees and not finding employment yet after being laid off is understandably a rough position to be in. IMO, if Chevron let you go, they won’t usually hire you back. As good of an employee you may have been, the decision to let you go most probably had other factors tied to it. For me, it would also be something I wouldn’t do. I would just move on from Chevron and not look back. It’s not impossible to be rehired at Chevron after a layoff, but it’s a remote chance at best.
6bfe - why wouldn't Chevron rehire laid off Chevron employees? My manager's manager assured me that when business picked back up that I would be called back. Maybe they lied. Does everyone really believe that laid off employees were poor performers? And why would someone from another company want to leave to come work for Chevron? Some people prefer smaller companies. I was laid off and was very passionate and dedicated about my work. I worked many hours outside of regular hours. It's frustrating to have earned three college degrees, and give my devotion to the company only to be told I am not worth anything. It doesn't make sense that my career should be over. It's emotionally challenging, because I haven't secured other employment yet.
Cashing in oil assets before value diminishes?
More divestment news from today. Chevron has divested its whole operating interests in 2 oil producing assets in the Neuquen Basin located in Argentina. The deal is in line with Chevron's plan to divest $10 billion in assets during 2016-2017. All of this recent divestment news, in addition to JW being replaced (retiring) is probably the reason for the stock price increase.
Chevron announced today that it will spend $4 billion next year in the Permian Basin in an effort to increase daily production to 400k barrels/day over the next several years. If Chevron is going to hire any additional exploration professionals, those people will most likely be from other companies and not former people who were laid off. The good part is, those companies who lose people to Chevron will now have vacancies to fill. Yeah, I know - dream on.
I wrote the previous reply and it got truncated. The essence is that Chevron has agreed to sell 7 deep water GOM prospects to Total, which acquired Maersk Oil this past August. The asset sales continue because Chevron needs the money to strengthen its financial position for the near term, possibly longer. Total seems to be a better managed company.
Total E Chevron is in not as good shape as they are portraying themself; Total values Chevron's deep water performance more than Chevron does.
Dr. Z rocks. Bruce N bows to him.
Still waiting details on the SJVBU lay offs ... who's got the scoop. You can remain anonymous.
Makes sense. Why spend money on expensive deep water projects when the returns on shale oil are a whole lot better.
More Chevron cost cutting. A subsidiary of Chevron terminated a contract one year early for a rig working in deep U.S. waters in the Gulf of Mexico. Transocean ultra deep water drillship Discoverer Clear Leader had day rate of $575k per day. Chevron exercised a clause to terminate the contract early, which was originally to terminate in October 2018. Chevron will pay Transocean $148 million lump sum termination fee.
This is becoming a basket case
Global Reserves made the call here. Dr. Z now makes all strategic decisions for the MCBU assets.
200,000 more acres will be sold. That is what monetized means. I don't know how Chevron defines non-core. The bottom line from this is that Chevron needs the additional money and will continue to sell assets and cut capex to become more lean and competitive. More layoffs will have to occur. That is my interpretation on the phrase 'lean company'. The problem with senior staff people leaving is that the accumulated knowledge in the exploration brain trust is gone forever. This company needs a real fundamental change in the culture and how it is structured. It is still not financially stable in the current and foreseeable future.
Yes, we sold 5% of our Permian assets. That does not mean there will be layoffs. I'd say this helps eliminate layoffs by adding cash flow to help fund the dividend.
Blood s---ers indeed... does anybody have the reduction count yet? I'm sure they can get away with atleast cutting half.
The bloodsucking unionmen will be let go
SJV is about to get the Axe.