I strongly believe that Chevron will have to reduce the dividend. It will be very hard to come to terms with and will result in Watson having to step down. But it will take place if oil prices drag on at sub $50 levels for the rest of this year. Chevron has a terrible cash flow problem. Dividends must be paid from cash flow. It's getting almost impossible to juggle our business and also pay dividends at the current yield.
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They will never reduce the dividend. Worked for 35 years and retired and they have NEVER reduced the Dividend. If you are a shareholder, you'll be glad they won't reduce or suspend the dividend.
Well Said 134319!
Also, the dividend cut would (will) be due to a complete mismanagement of the balance sheet by management. Watson inherited a net cash position and the strongest balance sheet in the industry with more cash than any of our competitors. An overly aggressive capex campaign chasing production and utter inability to manage any of the significant MCPs is the direct cause of the stress in our balance sheet. We'll go from the strongest balance sheet in the industry to resembling BP...except we didn't have a Deepwater Horizon incident.
The dividend is sacrosanct. It's the primary reason investors but our stock. Stable, growing dividend. Big oil companies don't cut their dividend and have their C-suite survive.
So why would Watson have to go if dividend is cut? Is there something written in stone or just your opinion?
Newsflash. Thanks.
After the asset write downs, liquidation of propertys, followed by a declining drop in prices, reduction of labor, etc. Where do you see us making enough profit to have a dividend?
Something better change! We need to get back to a real oil company with our prioritys "listed in most to least order" Find it - Drill it- Produce it- Refine it- Sell it , and have a future for the remaining employees that bust our asses and have to deal with the everyday BULLSH - IT
Oh look it's Nostradamus