Chevron sells assets in Canada for $6.5 billion
Chevron (CVX) has introduced the sale of its stake within the Athabasca oil sands venture and Duvernay shale gasoline, each positioned in Alberta, Canada, to Canadian Natural Resources for a complete worth of $6.5 billion. This all-cash transaction, anticipated to shut within the fourth quarter, is a big step in Chevron’s technique to cut back between $10 billion and $15 billion in assets by 2028.
Chevron shares rose 1.2% to $152.44 following the announcement, whereas the S&P 500 index fell 0.3%. The sale contains Chevron’s 20% non-operated curiosity within the Athabasca venture and its 70% operated curiosity within the Duvernay, each positioned in Canada.
Chevron technique and its implications
This transfer is according to the corporate’s strategic method of focusing its investments on key progress areasequivalent to shale deposits within the United States and the Gulf of Mexico. According to RBC analyst Biraj Borkhataria, transaction helps simplify Chevron’s portfolio in preparation for its $53 billion acquisition of Hess, anticipated in 2025. However, the sale is topic to an arbitration course of associated to Exxon’s preemptive rights to Hess’s curiosity in a discipline in Guyana, with decision anticipated in May 2025.
Chevron has seen a 1% enhance in its inventory worth to this point this 12 monthsthough this determine is under the 21% progress of the S&P 500 index in the identical interval.
