Chevron faces risks from fluctuating crude oil and natural gas prices, production curtailments, government policies, supply chain disruptions, economic conditions (including the Russia-Ukraine conflict), refining/marketing/chemical margins, potential asset impairments, litigation (climate change, coastal erosion, and other legal proceedings), regulatory changes, and the uncertain completion of the Hess acquisition. Uncertainties regarding tax settlements and environmental obligations also pose risks. The company's ability to integrate Hess' operations and achieve anticipated synergies is also uncertain.
Financial Upside
Chevron anticipates realizing cost savings from structural cost reduction initiatives. The company expects benefits from the acquisition of PDC Energy, Inc. and the Hess Corporation acquisition, including increased production and sales volumes. Asset sales are projected to generate $10-15 billion over five years. Positive impacts from crude oil liftings in Venezuela and the start-up of the Wellhead Pressure Management Project (WPMP) are also noted.
