http://www.bidnessetc.com/50667-will-depressed-crude-oil-prices-bring-tears-to-chevron-corporation-investor/ You Will see Watson gone by the end of the year. BET ON IT! Chevron will borrow long term which will push investors in a panic and stock price will collapse. They will have to borrow not only for the dividend but for expenses. Conclusion: Chevron is a major integrated US oil company with a market capitalization of over $150 billion. Despite its massive size and dominance, it continues to suffer and is not expected to meet its dividend payments for at least another three years. The future outlook for crude oil looks grim. Demand appears weak and no one seems ready to cut back on production. Chevron will have a massive challenge in steering through the commodity decline and managing its project related problems.The company could resort to asset disposal and long-term borrowing in order to continue its tradition of increasing its dividend to remain a part of the S&P 500 Dividend Aristocrat List.
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What Watson actually said is that by the end of 2017 the dividend would be covered by free-cash flow. In other words when Gorgon, Wheatstone, Big Foot, ALNG etc all come on stream. In the interim negative cash flow will be covered by borrowing and asset sales.
The dominos are falling at Chevron. How will the company look like after the last one falls? Not pretty!!
Yes Chevron f***ed Pacific. I saw Mike Acuff at a meeting aND he said that knife in the back of Pacific may be it's death. Chevron told Pacific back in June when it pulled the tender that they are broke. That was 25 dollars a barrel ago. I wonder what they say at 40 bucks a barrel? Dam broke?
Chevron told Pacific to take a drill ship to the gulf. When it arrived they informed them they can not afford the expense. Pacific is filing a motion on breach of contract. Verbal but still a contract.
Actually, 1.2
And how many more drill ships from around the world will it take to continue giving the employees their 8% 401k match?
Simple math, 7 drill ships from around the planet pays the dividend.
Time to buy that gas-guzzling Hummer I always wanted with my severance pay... and gasoline will be cheap for the rest of the decade. Can't be happier. To the last person to leave the building, please turn off the lights!!!
You won't see oil above $70 until the end of the decade.
I'm just hoping to get my severance package while there is still money. Glad I was one of the first cuts!!!
Yes Yarrington said at 70 free cash flow would cover it. At 40 Chevron is at a 42 billion dollar cash deficit just from price. I was listening to same radio interview. The poster left out the best line. Chevron will go down in History for it's historic mismanagement of MCP's, and gambling the entire companies future with its strategy for aggressive growth. Your kid's will read about this in the their MBA program 20 years from now on not what to do.
I share the same prediction of 50/50 for a Chevron employee to still be around by this time next year. Yarrington emphasized the dividend would be "covered through 2017", however let's all not lose sight everything is being based on $70 oil. Where is the oil price today, folks? Near $40, for those who don't remember. Yikes!!
This was on the radio this afternoon. Yarrington was quoted from the quarterly report last months as saying...."We intend to cover the dividend from free cash flow at whatever the ensuing price," Yarrington said. "That is a firm commitment." The talk then went on to say that Exxon was rumored to be in talks to buy GOM assets of up to 2 Billion and at an undisclosed price buying the Marcellus acreage to add to XTO's holdings. It was further said another 4-5 billion would be needed to cover expenses just to be at zero. When asked where the extra 2 billion comes from the answer was "People! If I worked at Chevron, I would bank on not being there a year from now. Today I give an employee at Chevron a 50/50 chance of being employed in August 2016"