Thread regarding Chevron Corp. layoffs

Bring on the hunger games in GOM

@3atx with minor overlap I see quite a few Hess folks coming over

Most of the Hess employees will be on the block. I'm sure that CVX will take this opportunity to let go a few more CVX employees who they don't like. Never let a crisis go to waste.

Esso's 2Q2023 upstream earnings were 6% LOWER than Chevron's despite production 25% higher than Chevron's. Do the math.

Look at it from this perspective: Exxon wins. They have now clearly lept over Chevron as king of the Permian for the foreseeable future and control all the operating decisions in Guyana. Just like Angola, Nigeria, Brazil, and (RIP) North Sea, Chevron, largely through risk-averse decisions, falls into 2nd place or lower. Winning, I guess in a sense, but definitely not bragging rights.

@2lvy, this is all part of the Hollub rejuvenation effort. Claim she's a hero based on ... nothing... hoping people will forget how beholden Oxy is to Buffett.

@2lvy, that was some creative rationalization! Nicely done.

EMED has a lot of Noble people too

Anyone who's been through buyouts and mergers like this knows that ultimately (within 5 years) the number of employees lost through retirements or layoffs is at or slightly higher than the number of employees at the conquered company. Check out the results after Texaco, Unocal, Atlas to see this. Noble is in the works right now. The only people Chevron needs to retain are the Bakken people, just like we hung on to a few Atlas people for the Marcellus and a (ultimately) a few Noble people for DJ. Hess has about 1,800 employees, so expect the retirement/layoff count to be about 2,000. Expect most of those to have happened by EOY 2024.

And just in time for the holidays!!
Hey kids, good news!
Ol’ dad’s gonna be around a lot more to play with you!!!

Price is flat but shares outstanding is up so value is up. Market cap is up 30%. Investors and analysts say Hollub is a hero.

Oxy stock still trades below the price when the anadarko deal was announced. I wouldnt say they are ki-ling it.

It was a great deal, Hess is solid as f—-. Look at Oxy, everyone said they overpaid for Anadarko, now they are ki-ling it.

“Think I’m gonna get a 30% pay cut next year. Man, I hate this”

No, you will either keep your pay or lose your head.

CVX stock crashed as analysts are not impressed with the deal nor with the all stock terms which dilute the value of CVX stock.

"Chevron is using a currency—its stock—that trades for just 12 times this year’s estimated earnings, to buy a company that is valued at 35 times this year’s profits. "

@1ntm, actually the reason CVX stock value dropped 3% the other day was due to the 5% premium we paid to acquire HESS. It’s very common to see this happen to the purchaser’s stock price when paying with company stock. The obvious expectation is that CVX stock will recover and then go up in value after the merger of assets is completed. At least, that is the theory. Time will tell if the decision to acquire HESS was correct and the timing of things are right.

This deal is terrible. One needs to ask MW why did you walk away from the Anadarko deal which was far better compared to this one? I think they rushed to get into Guyana at any cost as the exploration was too incapable to find anything. Time will tell this was a big mistake for the price paid. Getting into Bakken is another mistake, I suspect they will sell it in few years.

MW defends the purchase by repeating the premium paid was small (5% We got a bargain!!) and it will extend our free cash flow. HESS cash flow last year was negative $200 million. Nice.

His only other argument is that CVX has US profits against which to offset HESS losses. Great.

No wonder CVX stock tanked yesterday on the news.

I’m 10 years in at Hess. Talked to my buddy at Chevron yesterday. Think I’m gonna get a 30% pay cut next year. Man, I hate this

“For those younger and in CTC or Exploration, your long-term value to the company just dropped!“

This is key, a lot of future production for the company is now non-op (Shell and Exxon), so that means fewer people needed.

Hess pays better than chevron, that means more people will come in at high PSG’s

That means slower progression for us chevroids

$1B synergies...umm hmmm we know what that means

Hess has a beautiful office near Discovery Green (and GRB and Minute Maid Park) in downtown Houston, prime location, much better location than our current "campus" located in increasingly vacant SW downtown Houston. Anyone know if Hess owns the building, or is it leased?

Layoffs will be coming as a result. The BUs have already been challenged to show long term growth and hearing from some managers the need to cut opex in the amount on 4000 employees.

Lots of thoughts on this one:

1. MW covers for Chevron's incompetent exploration program. LS can continue to prance around the trade-show circuit claiming credit for other companies' discoveries. 2) Takes the heat off of our plateauing Permian effort. 3) Good thing Guyana is non-op. You wouldn't want our Keystone Kops in GOM, Angola, Nigeria or CTC running the show. 4) Perhaps biggest of all, it's virtually guaranteed there will be a package coming, likely about this time next year. Probably not as good as 2020, but for those who passed on it then, you've just received the biggest reprieve of your career! For those younger and in CTC or Exploration, your long-term value to the company just dropped!

The Axeman commeth. Dust off your resumes, boys and girls, like we have done so many times before you.

I think we are going to have to make some cuts in the office to be able to afford it. Maybe clean the restrooms once a week and you will either need to pay to use the restroom or the number of toilet paper squares will be limited.

Hopefully when the layoffs come, we clear out the non energy production management grovellers. Those who just sput the latest buzz words should be top of the layoff list.

Hopefully the positive out of all of this will be enterprise wide LAYOFFS! Show me the green with a cool layoff scene!

XOM buys Pioneer. 2.4B boe reserves, 700k boepd for $65B. $27/boe for reserves.
CVX buys HESS. 1.0B boe reserves, 300k boepd for $60B. $60/boe for reserves.

Hmmmm.

Something tells me the crackpot John Hess was determined to sell the company and MW bought it only to keep XOM from getting more Guyana equity.

If you can't find it....buy it.

$60B for an extra 300kbpd? What am I missing?

The Noble Board should be arrested…

I would be mad if I was a Hess shareholder. The board negotiated a miniscule 5% premium in an all stock deal with stock prices currently at high levels (not much room to go up further).

This aligns with some messaging from management that given the lack luster production in the Permian and the BUs in ability to meet their 12% targets, layoffs will be targeted for early 2025, just after the merger is completed and new organizations stood up or shut down.

Say bye bye to that NY office

HESS has been such a family-run turdd forever. They have about 1 billion barrels proved reserves so we are paying a whopping $60/bbl. Three years ago we could have bought HESS for $10B or $10/bbl. All we are really getting is Guyana/Suriname - the rest is trash. They only produce about 300,000 boepd which is less than most of our better business units.

What a terrible deal. MW panicked because of the XOM deal. This will go down in history as at least as bad as Texaco's Getty fiasco.

Guyana. Talk about an amazing field. Then it mentions. None Operative

CTC 35% cut coming

I hope a package is offered.

So Hess employees will get all their shares vested and a free 2 years to sc--w off if they want or leave while we get beat down harder.

We should just sell the unconventional HES assets before we run them into the ground.