Bids for Chevron’s 550K M-U Acres & 500 Wells Due in Mid-August

Last December Chevron announced it was writing down over $10 billion worth of its U.S. onshore shale assets, with $6.5 billion of that number coming from its Marcellus/Utica assets. Also in December, the company posted for sale ALL of their M-U assets (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). Just sticking a “for sale by owner” sign on more than a half-million acres of leases and over 500 wells didn’t work, so in February Chevron hired investment bank Barclays to help shop their M-U assets (see Chevron Hires Barclays to Help Sell Its Marcellus/Utica Assets).
Continue reading

Chevron Dumping Pittsburgh Office Space – 90,000 Sq Ft for Lease

Last December Chevron announced it was writing down the value of its Marcellus/Utica assets and putting those assets up for sale (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). Prior to the pandemic lockdown, Chevron said it would begin cutting 320 jobs in the M-U beginning in early April (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th). The cuts continued in May with another 80 employees getting a pink slip (see Chevron Cuts Another 80 Jobs in M-U; Still Looking for Buyer). It shouldn’t come as a surprise with all the layoffs that Chevron is now advertising most of their Pittsburgh HQ office space for sublease.
Continue reading

Chevron Cuts Another 80 Jobs in M-U; Still Looking for Buyer

Last December Chevron announced it was writing down the value of its Marcellus/Utica assets and putting those assets up for sale (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). Prior to the pandemic lockdown, Chevron said it would begin cutting 320 jobs in the M-U beginning early April (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th). The cuts continue with another 80 employees getting a pink slip this week.
Continue reading

Marcellus Companies $tep Up to Help During COVID-19 Crisis

Companies in the Marcellus/Utica shale industry have stepped up and given money, and in some cases retooled manufacturing operations, in order to help communities, first responders and medical professionals respond to the COVID-19 coronavirus pandemic. Companies like ExxonMobil, Range Resources, Cabot Oil & Gas, EQT, Alta Resources, Chevron, Greylock Energy, Olympus Energy, Penn E&R, Southwestern Energy and others. We are gratified and proud of the industry where we hang our hat.
Continue reading

Chevron Tries to Make Room for M-U Workers with Buyout Offers

Last week MDN brought you the news that Chevron will begin to trim 320 jobs in the Marcellus/Utica beginning in early April (see Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th). The Chevron job cuts should not be a surprise, given the company is selling all of its M-U assets (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). From the beginning of the M-U exit process, Chevron has made it plain it hopes to transfer at least some of the M-U positions to other regions/areas of the company. We now have more insight as to how that may happen.
Continue reading

Chevron Cutting 320 Jobs in Marcellus/Utica Beginning April 6th

By the end of this year, Chevron will have eliminated 320 jobs in its Marcellus/Utica operation. Some 288 of those positions will be gone from the company’s regional headquarters in Moon Township (Allegheny County, PA), and another 32 will be gone from the company’s Mount Braddock location (Fayette County, PA). The company says it will try to find new assignments for as many people as possible. The layoffs begin on April 6.
Continue reading

Chevron Hires Barclays to Help Sell Its Marcellus/Utica Assets

In December Chevron announced it was writing down over $10 billion worth of its U.S. onshore shale assets, with $6.5 billion of that number coming from their Marcellus/Utica assets (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). In addition, the company announced it is putting all of its M-U assets up for sale (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). Just sticking a “for sale by owner” sign on more than a half-million acres of leases and over 500 wells doesn’t appear to be working. So Chevron has hired investment bank Barclays to help shop their M-U assets.
Continue reading

Is Chevron’s $10B Impairment Write-Down Important…or Not?

In a bombshell announcement last week Chevron said it is writing down (reducing the paper value) of all its shale assets by $10-$11 billion in the fourth quarter. “More than half” of the write-down is for its Marcellus/Utica assets (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). In addition, the company has put all of it’s M-U assets on the market for sale (see Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media). What does a write-down of asset value actually mean? Is it important?
Continue reading

Chevron Confirms M-U Assets for Sale, Asks Vendors to Avoid Media

On Wednesday MDN told you Chevron is hinting they will sell off all of their Marcellus/Utica assets (see Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All). It’s no longer a hint. An MDN friend forwarded a copy of an email sent yesterday by Chevron’s Appalachian Mountain Business Unit (AMBU) vice president to suppliers confirming that all (yes ALL) of Chevron’s Marcellus/Utica assets are officially on the market for sale. The email also asks suppliers to ignore rumors and speculation circulating, and requests that should pesky members of the media contact them for comment, to please direct them to Chevron media relations for an official response. We have a copy of the leaked email…
Continue reading

Chevron Writes Down $5B+ in Marc/Utica Assets, Looks to Sell All

In a bombshell announcement yesterday, Chevron said it is writing down (reducing the paper value) of all its shale assets by $10-$11 billion in the fourth quarter. “More than half” of it is a write-down of its Marcellus/Utica assets. Not only that, but Chevron says it is “evaluating its strategic alternatives for these assets, including divestment.” Translation: Chevron has put its M-U assets, all of them (over 750,000 890,000 acres plus producing wells) up for sale. But the bad news doesn’t stop there.
Continue reading

Chevron Leases Land Under Mon River for $4K/Acre, 20% Royalties

This post catches you up on both some old and some new news. In February of this year Chevron signed a lease with the Pennsylvania Dept. of Conservation and Natural Resources (DCNR) to lease 1,028.4 acres of land *under* the Monongahela River in Greene and Fayette counties (southwestern corner of the state). That’s the old news. The new news is that Chevron has just added another 235.6 acres to the original lease for a grand total of 1,264.3 acres. Chevron is paying DCNR just over $5 million in lease signing bonuses for the entire deal.
Continue reading

Top Energy CEOs Skate on Thin Ice by Turning Against Shareholders

If Jeff Bezos (Amazon CEO) and Tim Cook (Apple CEO) jump off a cliff, should you, as CEO of an energy company, jump off too? The CEOs of ExxonMobil, Chevron, Marathon Petroleum and several other big oil and gas companies have just answered that question in the affirmative. Splat. Perhaps they were caught up in the euphoria of the moment. Perhaps they were shamed. (A new disorder for the DSM V: “CEO shaming.”) For whatever reason, a group of CEOs from some of the largest U.S. companies now say the people who buy their company’s stock and fund them via infusions of investment capital are no longer the #1 priority for their companies. We wonder what investors in those companies think. Have they had a change of heart? “Here, take my money and pee it away with no returns. Please! I don’t need this money any more.” Hey Jeff and Tim, we have a bridge in Brooklyn we’d like to sell ya…
Continue reading

Chevron Leaves the Altar with $1B, Waves Goodbye to Anadarko

Whew, that was close. We’ve had a concern that if Chevron ended up buying Anadarko Petroleum (for Anadarko’s Permian Basin oil assets), it might lead to Chevron pulling back from their drilling program in the Marcellus/Utica (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). We don’t have to worry any more. Even though Anadarko signed a deal to sell itself to Chevron, Occidental Petroleum made a bid to buy the company too (see Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko). There’s a breakup clause in the signed Chevron deal. Anadarko would have to pay Chevron $1 billion for leaving them at the altar.
Continue reading

Anadarko Leaves Chevron at the Altar to Elope with Occidental

The battle to buy Anadarko Petroleum by Chevron and Occidental Petroleum (Oxy) has taken an interesting turn. Over the weekend Oxy revised its offer. It will still pay Anadarko shareholders $57 billion (as before), but the offer was revised to dial up the amount of cash and dial down the amount of stock swaps. Never hurts to use cash as a sweetener. The new offer did the trick. Although Anadarko previously signed an agreement to sell itself to Chevron, Anadarko announced yesterday they are leaving Chevron at the altar and riding off into the sunset to elope with Oxy.
Continue reading

Anadarko Decides Occidental Petroleum Deal Better than Chevron’s

An interesting development in the bidding war to buy Anadarko Petroleum. Two weeks ago Chevron announced a deal to buy Anadarko Petroleum for $33 billion plus assuming outstanding debt, a deal worth $50 billion (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). Paperwork was actually signed. But Occidental Petroleum previously had offered a “better” deal, and went public with their offer last week (see Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko). Now that the Oxy offer is public, Reuters is reporting super secret inside sources say the Anadarko board has decided to drop Chevron and pursue a deal with Oxy instead.

4/30/19 UPDATE: Anadarko officially announces decision to resume negotiations with Occidental. See announcement below.
Continue reading

Occidental Petroleum Offers 14% More than Chevron to Buy Anadarko

Less than two weeks ago Chevron announced a deal to buy Anadarko Petroleum for $33 billion plus assuming outstanding debt, a deal worth $50 billion (see Permian Love Story: Chevron Buying Anadarko in $50B Megamerger). At the time we told you about a potential cloud on the horizon–that Occidental Petroleum had offered more for Anadarko. Indeed, Oxy wants Anadarko too, and a full-blown bidding war has now erupted. Yesterday Oxy made it’s offer public, an offer 14% higher than Chevron’s offer: $57 billion.
Continue reading