Chevron restructures for efficiency, names new leaders

Published 24/02/2025, 15:06
Chevron restructures for efficiency, names new leaders

HOUSTON - Chevron Corporation (NYSE: NYSE:CVX) today unveiled significant changes to its leadership team and organizational structure, aiming to streamline operations and bolster long-term competitiveness. The energy giant is consolidating its Oil, Products & Gas organization into two new segments: Upstream and Downstream, Midstream & Chemicals.

Mark Nelson will helm the newly structured organization as vice chairman and executive vice president, while Clay Neff transitions to president of Upstream, and Bruce Niemeyer steps into the role of president, Shale & Tight, both effective July 1, 2025. Andy Walz will continue as president of Downstream, Midstream & Chemicals.

In a strategic move to enhance value in Technology, Projects & Execution, Ryder Booth has been appointed vice president, succeeding Balaji Krishnamurthy, who will become president of Chevron’s Australia operations starting April 1, 2025.

Mike Wirth, Chevron’s chairman and CEO, stated that the organizational update and leadership appointments aim to "improve our operational efficiency and position Chevron for sustained growth." Wirth emphasized that these changes are expected to foster innovation, enhance execution, and deliver shareholder value.

Chevron is a leading player in the integrated energy industry, engaged in the production of crude oil and natural gas, manufacturing of transportation fuels, lubricants, petrochemicals, and additives, and the development of energy technologies. The company is also focusing on reducing the carbon intensity of its operations and expanding into renewable fuels, carbon capture, hydrogen, and power generation for data centers.

The information in this article is based on a press release statement and contains forward-looking statements regarding Chevron’s operations and strategy. These statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from the expectations expressed.

In other recent news, Chevron Corporation has announced plans to lay off between 15% and 20% of its workforce, which translates to approximately 6,000 to 8,000 employees, as part of a broader cost-cutting initiative. This move aims to enhance cash generation and is part of the company’s ongoing efforts to improve its financial position. In tandem with these measures, Chevron has been actively returning value to shareholders through dividends and share buybacks, having repurchased $30 billion of its own shares over the past two years.

Chevron’s oil and gas reserves have hit their lowest levels in over a decade, leading to increased focus on its planned $53 billion acquisition of Hess Corporation (NYSE:HES). However, this acquisition faces legal challenges due to a dispute with Exxon Mobil (NYSE:XOM) over the Guyana oilfields. Analyst Paul Cheng from Scotiabank (TSX:BNS) has highlighted the low reserve replacement ratio as a concern for Chevron’s long-term production potential. Meanwhile, Mizuho (NYSE:MFG) Securities has raised Chevron’s stock price target to $203, maintaining an Outperform rating, citing potential increases in free cash flow and shareholder returns.

Conversely, Truist Securities has lowered its price target for Chevron to $160, retaining a Hold rating, due to anticipated slower production growth in the Permian Basin. This reduction in growth is linked to a slight decrease in capital spending, though potential gains from the Tengizchevroil projects are expected. The upcoming international arbitration ruling in May regarding the Hess acquisition could significantly influence Chevron’s strategic direction and financial planning.

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