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HOUSTON - Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX), announced Tuesday the acquisition of approximately 125,000 net acres of leasehold positions from TerraVolta Resources and East Texas Natural Resources LLC. The energy giant, currently valued at $255 billion and considered undervalued according to InvestingPro analysis, maintains strong financial health with a GOOD overall rating.
The acquired acreage spans Northeast Texas and Southwest Arkansas, regions containing the Smackover Formation known for its high lithium content. This marks Chevron’s initial step toward establishing a commercial-scale domestic lithium business.
The company plans to utilize direct lithium extraction (DLE) technology to extract lithium from subsurface brines. This emerging process is expected to enable faster, more efficient production with a smaller environmental footprint compared to traditional extraction methods.
"Establishing domestic and resilient lithium supply chains is essential not only to maintaining U.S. energy leadership but also to meeting the growing demand from customers," said Jeff Gustavson, president of Chevron New Energies.
Lithium serves as a key component in electrification technologies and can contribute to developing lower carbon energy systems while balancing reliability and affordability concerns.
The strategic acquisition leverages Chevron’s existing capabilities in subsurface resource development and value chain integration, according to the company’s press release statement. The move represents an investment to support energy manufacturing and expand U.S.-based critical mineral supplies.
Chevron, one of the world’s leading integrated energy companies, produces crude oil and natural gas while manufacturing transportation fuels, lubricants, petrochemicals and additives. The company has stated aims to grow its traditional oil and gas business while simultaneously lowering carbon intensity and developing new business lines.
In other recent news, Chevron Corporation’s stockholders approved amendments to the company’s Restated Certificate of Incorporation, aiming to eliminate the monetary liability of certain officers under specified conditions. This amendment was approved with 62.51% of the outstanding shares voting in favor. Additionally, Chevron held its Annual Meeting of Stockholders, where a significant majority expressed support for the company’s current board of directors and executive compensation, while rejecting several climate-related proposals. Over 1.4 billion shares were represented at the meeting, amounting to roughly 85% of its outstanding common stock.
In another development, Chevron has ended its oil production, service, and procurement contracts in Venezuela, although it intends to retain its direct staff in the country. Meanwhile, the U.S. government is preparing to grant Chevron a limited license to keep its oil-producing assets in Venezuela, which would allow the company to maintain key infrastructure but bar it from importing oil from the nation. This move comes as Chevron’s waiver to operate in Venezuela is set to expire. Additionally, TotalEnergies is acquiring a 25% stake in several offshore oil and gas exploration areas in the United States operated by Chevron, expanding its presence in U.S. waters.
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