By Sheila Dang
Houston (Reuters) -The ahead of Shevron’s entry into the rich offshore oil fields of Gayana solves one of the biggest problems that the American specialty apply: where his growth will come beyond the next few years.
On Friday, the US oil manufacturer closed the HESS $ 55 billion acquisition – among the largest oil and gas deals – and won the last share in the Stabrooek block in Gayana after prevalent in the legal fight against the greater opponent Exxon Mobil.
Before closing the deal, fears increased about the prospects for the growth and growth of Chevron production, with oil and gas stocks fell to the lowest for at least a decade.
The Stabrooek block contains at least 11 billion barrels of petroleum equivalent and is one of the most significant discoveries of oil for decades.
“The combination is improving and expanding our growth profile in the next decade,” said Chevron CEO Mike Wirty to close the acquisition of HES.
Some investors have cheered the development as an increase in the long -term prospects of the company.
“The acquisition includes a free cash flow opening that Shevron came at the end of this decade in the 2030s,” says David Birnes, a portfolio manager at American Century Investments, which has a $ 351 million position in Chevron, according to LSEG data.
Without HES it was not clear how Chevron could maintain free cash flow, he said, adding that the acquisition was also expected to help Chevron maintain his dividend in the 2030s.
Stephanie Link, a chief investment strategist at the Hightower Advisors Advisory Company, said he was considering adding Chevron to his portfolio as his shares had declined in the last year and had a 4.5% dividend yield.
“The key is that Chevron is now gaining access to one of the fastest growing and lowest oil-free oil development,” she said.
The shares fall
Closure is a necessary victory for Shevron after a few difficult months, during which he announced global cuts, facing increasing safety problems and losing exports from Venezuela. His shares have fallen by 7.5% in the last year. On Friday, they decreased by 1.6% in the afternoon.
Chevron oil and gas reserves or the amount that can potentially extract from its oil and gas deposits have fallen to 9.8 billion Boe at the end of 2024, the largest point in at least a decade.
The replacement rate of the organic reserve, a measure of how much oil and gas has been added to reserves compared to the amount produced and which excludes acquisitions and sales is only 45%. A 100% or more ratio means that the company replaces its reserves at the same speed that exhausts them.