What on earth happened? TCO forecast cashflow DOWN $1 billion per year???
Production was flat (w/o PDC) and Permian production DECLINED?
We were WAY low to analyst expectations. What a disastrous earnings report. No wonder we have to distract the market with the (terrible) HESS deal. It is a panic play.
Go woke and go broke
Serves MW right, if you sc--w us, we sc--w you
I heard that all the TCO engineers are basically sabotaging the project. They know once the gravy train ends then they will be laid off. Better to postpone it a couole quarters, take the expat pay and buy a nice house on a beach. Makes you wonder what our managers are thinking with this business strategy? Very obvious reaction to being needed now but then laid off once the project is over.
It was pretty clear that MW was not prepared to be spanked like that. I have never seen him in that situation before. PB is a clown.
Hopefully Chevron will learn one day that the right people create success and value not work processes.
They posted the meeting transcript this afternoon. The analysts just demolished MW and PB over TCO. Completely pulled their pants down and there was nothing they could say other than "we thought it would be easier to commission FGP but then, after operating there for decades, we found it was very complex and some of the equipment was old".
What maybe surprised me the most was that it seemed Mr. MW was more unprepared than in other meetings. He seemed to “uh, um, well, um, yeah, um…” stammer more than ever. That did got me attention that something wasnt’ right bout none of this call. Kinda sad to me bc i feel like mw has been going down hill and i really liked him back in the old days. Just seems like something not right bout him now….he is not in touch? Lot of him out talking to everyone on the camera these days…..maybe lost touch with wat hapenign inside? Hmmmmm, kind o sad……
That call was perty bad, yep……ouch…..
I guess they will need to make the company so lean now with layoffs that there is no meat on the bones at all.
I wonder if NH or EB will be held accountable for the TCO damage to the stock.
MW destroyed Chevron with the transformation. I doubt he's learned from that mess since he seems to love layoffs.
"Shares at US supermajor Chevron took a hit on Friday, falling the most in more than a year, after the company said costs will rise at a massive oilfield project in Central Asia, according to a Bloomberg report.
Chevron fell more than 6% in early trading following the announcement that costs at the company’s $45 billion Tengiz project in Kazakhstan will rise by about 4% due to a slower than expected start-up that had been years in the making.
The company will need to pay an extra $1 billion for its share of the capital spending, meaning that the operation’s free cash flow will drop 20% from 2025. Output will be lower than expected in 2023 and 2024."
Nothing boosts morale better than an enterprise wide layoff - MKW
Better than The Best. Ha!
This earnings call was an absolute embarrassment. MW and PB stumbled to answer every question. MW talked all around the questions, trying to deflect with unrelated context to paint a bigger, more rosy picture. However, the analyst continued to read through this throughout the meeting. While they maintained a somewhat “polite” decorum in the questioning, but they continued to come through with the same theme of “please explain this”, never relenting in seeking to get MW and PB to get to the bottom of the miss. Our executives never “pin pointedly” answered the questions, because if they do - it is game over for their credibility…….at the same time, their credibility still took a big hit b/c of the smoke and mirror answers. The analysts have been asking similar questions for a few years and MW and PB kept “punting” and saying “it will come”………and now it hasn’t……the call yesterday was clearly a lot of deflecting finally coming to a head. They couldn’t answer the questions. Do they truly not understand the questions, or do they not know the answers…….or do they know the answers and now they are in panic mode. PB is retiring……..hmmmm………me thinks he saw this coming. I heard through the grape vine that at MW’s last leadership forum in the spring that he and PB both belittled the extended leaders of business units that they are not doing a good job, not telling the truth around issues and not doing their job. I hear that it was super deflating for the leaders………something about “how leaders react matters”……my boss told me that the reaction by MW and PB was to embarrass a few leaders most directly related with their comments. Midcon and Australia in particular. MW’s seat just got a bit hotter, but the BOD has their backs against the wall with a successor not in place. I presume the investment community will begin to ratchet up the heat on the BOD over the next 12-18 months. CVX has fallen mightily over the last 2 years from the lofty post it once held…….my boss saids MW has a saying, something about leaders changing outcomes……..in this performance/stock dive, I guess the outcomes have changed……but not for the better…….this year the stock price has tanked, this hurts. And it is embarrassing. They can’t buy their way out of this one, but that is what they are trying to do through all these acquisitions….I know my leaders is ultra disappointed, and I suspect he is not the only one…….if MW is loosing his extended leadership team, that is really concerning…..
MW is saying he has no confidence in chevrons execution
OBO: operated by others, same as NOJV: non-operated joint venture
OBO??
The money we waste on turnarounds is ridiculous. It's the endless meetings and useless metrics. In the end, IMPACT doesn't have a clue where all the money goes because there aren't enough bean counters and no cost control in the field. Every turnaround they make up stories about this or that then send a bill to the projects.
never ceases to amaze me MW always snatching defeat from the jaws of victory
by always - i mean every three months, like clockwork
and the bod extended this EXTENDED this guy past mandatory retirement ?
starting to rue the day MW met with XOM about merger in jan21 and left emptyhanded
OP is right, Hess is a bad deal and the market seems to think so with both Chevron and Hess stocks losing big in 5 days.
https://seekingalpha.com/article/4643408-mr-market-not-happy-with-chevronhess-deal
OBO wan Kenobi is the next buyout target. I have good buddy in BD orgenization and he tells me it is blockBUSTER. I want too have my stake and eat it too. No joke, you herd it here first.
That’s why MW is buying OBO
Just like all the good PR efforts in the west to portrayed disaster as a triumph! To show devil and evil acts as mercy and companion and self defense! Winning in any environment is the face of losing all the time!
Stock took a duump today - down $10. Investors hate us for this huge stumble.
Winner winner, let’s all go to a LAYOFF dinner!!! That should make up for it. Most people are just too technical…
We have Layoffs MBA doing financial analysis now. Return on … expenditure? Maybe you should just go downstairs into mama’s basement, fire up some weed and get back to your video games.
Public domain: it costs chevron $45.208B to operate the business per quarter a return of less than 7% on expenditure is hardly good in today's environment. There are institutions offering better returns for depositing with them and no risk. If you really think this quarters returns are good...guess your one of the hipot yes persons.
Made $6.5 billion in a quarter. Not all that long ago, we didn’t make that much in a year. Relax.
Hah, this is the reason all the down streamers are now in Upstream. When margins are low, they complain and when margins are high they shut down for turnaround. They want to have the cake and eat the cake, starting with MW. Manufacturing has become a money pit due to turn around scope and execution mismanagement.
I thought the whole point of an integrated oil company was for the downstream side to mint money when prices fell (margins rose). But ours seems broken.