"With the anticipated strong cash generation of our base business, we expect to grow our dividend, buy back shares and invest in lower carbon businesses," Chief Executive Michael Wirth says
Chevron, the second-largest US oil producer, reported a profit of $1.72 billion, or 90 cents per share, compared with $2.45 billion, or $1.31 per share, a year earlier. Year-ago results included about $680 million in asset sales and favorable tax items.
Net profit was $1.4 billion, or 72 cents a share, down from $3.6 billion, or $1.93 cents a share, a year earlier.
The 2nd US Circuit Court of Appeals in Manhattan ruled in favor of BP Plc, Chevron Corp, ConocoPhillips , Exxon Mobil Corp and Royal Dutch Shell Plc , rejecting the city's efforts to sue under state law for trespass and creating a nuisance.
"We would need three months of oil prices sustained at current levels followed by six months of drilling activity before production begins to climb higher on a sustained basis," said Peter McNally at Third Bridge.
Falling energy demand due to pandemic lockdowns sent the industry into a tailspin in 2020 and led Chevron to a $5.54 billion annual loss, its first since 2016.
Chevron's 2020 output was around 2.98 million barrels of oil and gas per day, and an investor presentation showed the company increasing output through 2025 though no numbers were given.
Noble Midstream's unitholders will get 0.1393 Chevron shares for each unit held under the new agreement, Chevron said.
Chevron's shares were up 2.4% at $107.39 in pre-market trading on Friday, boosting the deal value to about $14.96 per Noble Midstream share. The pipeline operator's units were down marginally at $15.
