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    Thursday, May 30, 2024

    Chevron Shareholders Re-Elect All Directors, CEO Confident on Hess Deal

    Chevron shareholders on Wednesday re-elected all its 12 board directors, in a sign of support for the oil major at a time when it is caught in the regulatory crosshairs over its $53 billion proposed buyout of oil producer Hess Corp.

    CEO Michael Wirth said the company was moving ahead on the U.S. Federal Trade Commission's review of the deal in the coming weeks.

    The deal also faces a challenge by Exxon Mobil and CNOOC, which claim they have pre-emption rights to any sale of Hess' Guyana assets.

    "We anticipate moving the FTC approval process in coming weeks and are confident our position (on Exxon Mobil's claim of right of first refusal on Hess' Guyana assets) will be affirmed in arbitration," Wirth said.

    Meanwhile, shareholders rejected all four proposals brought forward by investors, with 98% voting against reporting about the risks from voluntary carbon-reduction commitments and 92% voting against a report on how the business would be affected by consumers sharply cutting their use of single-use and virgin plastics.

    A proposal to hire an outside group to evaluate Chevron's human rights policies fell with 78% opposed, the lowest rejection of any of the resolutions.

    Chevron's board had recommended a "no vote" to all the proposals.

    Wirth pointed out that the company has completed several acquisitions in recent years, including deals for U.S. oil and gas producer PDC Energy and renewable fuels maker ACES Delta in 2023.

    The company could see its footprint continue to shrink in California, Wirth added, as it becomes uncompetitive for Chevron to invest in its headquarters-state amid regulatory challenges.

    Chevron also said its operations have not been affected by the conflict in the Middle East region.

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