Energy
Did Chevron Just Force Exxon Mobil Into Dividend Hikes No Matter What?
Published:
Last Updated:
Chevron Corp. (NYSE: CVX) was hosting its annual analyst meeting in New York. The company said that it was reiterating priorities, which focused on its near-term outlook and showed how it is in an advantaged position for when the energy markets recover.
What stands out here is not just the forecast for production growth, nor in the new round of spending cuts. Chevron is taking the steps to protect its dividend. This matters, particularly as it stands with Exxon Mobil Corp. (NYSE: XOM) and that dividend.
24/7 Wall St. has focused on Chevron’s own projections first as that was the news of the day, but we wanted to look specifically at how all the dividend analysis looks on Chevron versus Exxon Mobil. That includes yields, with Chevron out-yielding Exxon Mobil, and it includes what each company’s dividend liabilities mean. It seems hard to believe, but the long and short of the matter is that there is literally a $20 billion dividend liability here if you combined the payouts from each company.
The company’s project completions and shale drilling efficiency are targeting a capital spending (capex) budget for 2017 to 2018 at a range of $17 billion to $22 billion per year. Chevron said back in late 2015 that 2017 to 2018 spending would be roughly $20 billion to $24 billion.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
