Chevron Corporation (NYSE:CVX) and Noble Midstream Partners LP (NASDAQ:NBLX) have moved into an all-stock deal. This deal will see Chevron acquire Noble’s remaining outstanding assets. The parties announced the agreement six months later after Chevron purchased Noble.
Currently, Chevron has almost 63% of Noble Midstream shares, and it intends to go for the remaining 33.925 million. The deal is valued at about $1.32-billion.The latest acquisition makes Chevron one of the beneficiaries of the Permian Basin assets.
Company to increase return on capital employed
Chevron exudes confidence that it will succeed in increasing the return on capital employed as it promised investors. The company’s confidence emanates from the choices it has been making in most of its business undertakings. For example, it has been quite thoughtful in its selection of projects. Sources indicate that it has been settling only on the highest-return projects.
Chevron’s CFO Pierre Bieber is quite pleased about the steps the company has made so far, terming cost efficiency and Capital discipline as essential points of focus for any business that wants to thrive. The official takes great pride in the company’s portfolio and investments, outlining that the two mentioned factors put them in the position to grow their free cash and boost returns.
The next five years might witness the company’s capital decline, and that is because it plans to invest in the improvement of its position in the Permian. The goal will be to boost investment in some of the company’s attractive assets in Kazakhstan.
Carbon reductions
Chevron had also been seeking to ensure carbon reductions, and it is pleased to have hit this set target. Reports indicate that the business achieved the above goal three years ahead of schedule, which tells a lot about its dedication to environmental protection.
This business takes great pride in its energy transition strategy, terming it progressive and focused. It targets making moves that will be good for the shareholders and the society as well. The company’s 2028 goals and their achievement would spell out a lot of essential points. For instance, it would take the top quartile oil and gas producer position regarding carbon intensity.
Chevron is also looking to boost its renewable energy and carbon, a move that will see it stay at the top of its game. Proper strategy means everything to the company, which discloses plans to invest in low-carbon technologies. It singles out hydrogen and carbon captures a part of the most important moves.
