Chevron is pulling out all the stops to cope with the historic collapse in oil prices.
From slashing spending, to scaling back its production ambitions and suspending its stock buyback program, according to CNN, the oil giant is pulling out all the stops to cope with the historic collapse in oil prices. Chevron, which traces its roots to 1879, hasn’t cut its dividend since 1934 during the Great Depression, but as the coronavirus outbreak continues, the stage has been set for a deep global recession.
Goldman Sachs predicted earlier this month that the biggest oil companies, including Chevron and ExxonMobil, will avoid dividend cuts because they no longer need high oil prices to break even.
“Our financial priorities remain intact. And the dividend is at the top of that list of priorities,” Chevron CEO Michael Wirth told CNN Business. “Our shareholders depend on that dividend.” Wirth said the company is moving forward with a restructuring plan that began long before the oil crash. He added that Chevron has not “finalized” specific numbers around potential layoffs.