Chevron Corporation (NYSE:CVX) Q3 2023 Earnings Call Transcript

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Ryan Todd: Thanks. Maybe switch gears a little bit to the Gulf of Mexico. Can you maybe just provide any update on an overall basis? Do you anticipate the addition of the Hess assets in the Gulf to have any impact on your approach to the basin in the coming years? And then you’re scheduled to have three separate projects hitting at Anchor, St. Malo and Whale come onstream during 2024. Could you maybe update us on the progress of those projects and maybe the timing whether we should expect those in the first half or the second half of the year?

Michael Wirth: Sure. So on the combination with Hess, I think we’ll come back to you as we close the transaction and we integrate those. We’re partners in a couple of projects that they operate. We both have lease positions out there. I think you would expect us to high-grade the exploration program as we look across a larger combined lease position and – but we’ll talk to you more about that as we go forward. In terms of specific projects, yes, you’re right, we’ve – Mad Dog 2 actually saw first oil this year. And we expect peak next year on Mad Dog 2. You can refer to the operator for more on that. Anchor and Whale are both expected for first oil next year. Anchor is seven wells in total, two that will be online in 2024, three in 2025 – no, two in 2025, two in 2026 and one then in 2027.

The FPU is safely moored out there in the field right now. The manifold and pump systems and subsea manifolds are all fabricated. We’ve landed and tested the 20,000 psi blowout preventer. So that project is moving along nicely. Production in 2024 is modest because there’s only a couple of wells online. Think of it midyear in terms of general timing. I’d refer you to Shell on the Whale project, first oil probably the latter part of 2024 and a similar kind of a profile, where you’ve got a smaller number of wells online initially. And then over the subsequent couple of years, you’re going to see additional wells come online. And so the production impact of that starts to show up in 2025 and 2026 in a greater way than it does in 2024. And then Ballymore is actually first oil in 2025, not 2024.

But that will come online in 2025, simpler development, tiebacks to Blind Faith, three wells, two of which would be online in 2025. The third one would come online in 2026. And so again, the production on that, a little bit in 2025 and then you’ll see more of it in 2026 and 2027.

Pierre Breber: Ryan, just more broadly on Hess, we are not planning to hold our Investor Day at our usual timing. We’ll likely either have just closed or will be in the antitrust review process. This is a big transaction impacting Gulf of Mexico but transforms the portfolio overall. We gave some guidance on potential asset sales also. So you should expect us to do an Investor Day several months after we close and when we have time to really put together a combined business plan for our investors.

Ryan Todd: Thank you.

Pierre Breber: Thanks, Ryan.

Michael Wirth: Thanks, Ryan.

Operator: We’ll go next to Bob Brackett with Bernstein Research.

Bob Brackett: Good morning. You’ve spent part of the week engaging with your shareholder base and making the case for the acquisition of Hess. Can you talk to, not details, obviously, but perhaps the tone of those conversations, the enthusiasm, anything that surprised you?

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