Chevron (NYSE:CVX) shareholders re-elected all 12 board directors on Wednesday, signaling strong support for the oil major as it navigates regulatory scrutiny over its proposed $53 billion acquisition of Hess Corp. (NYSE:HES).
CEO Michael Wirth announced that Chevron is progressing with the U.S. Federal Trade Commission’s review of the deal and expects to move forward in the coming weeks. The deal also faces a challenge from Exxon Mobil (NYSE:XOM) and CNOOC, which claim 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.
Shareholders also rejected all four proposals brought forward by investors. Specifically, 98% voted against reporting the risks from voluntary carbon-reduction commitments, and 92% opposed a report on the impact of reducing single-use and virgin plastics. Additionally, a proposal to hire an outside group to evaluate Chevron’s human rights policies was rejected by 78%, the lowest rejection rate among the resolutions.
Chevron’s board had recommended voting against all the proposals.
Wirth highlighted that Chevron 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.
Wirth also mentioned that Chevron’s footprint in California might continue to shrink due to regulatory challenges making it uncompetitive to invest in the state.
Chevron stated that its operations have not been affected by the ongoing conflict in the Middle East.
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