CVX Pasedena

Q. Specifically around the Pasadena [Texas] refinery you recently acquired [from Petrobras] to take advantage of your Permian Basin upstream position. How are you adjusting your plans for Pasadena as your upstream development slows? How are you thinking about what you want to accomplish there?

A. That’s a good question. I think we’re happy with our acquisition of Pasadena. May 1 was when it closed a year ago, so we’ve been up in it for about a year. Some planned shutdown work on the crude unit is wrapping up. Our leadership there has done a great job managing a whole bunch of contractors coming onsite while making sure that they stay safe, they have the right PPE on, they’re social distancing. They’re still getting the work done but at the same time we’ve got to make sure we’re taking care of them. So I’ve been really impressed with the team there. You know, going forward, we’re evaluating when we finish that work, when do we start that back up — that’s all part of the conversation we just had around demand and where the world’s going. When we do finish the work, when we do get back up, we will start putting our Permian barrels through that refinery and we’ll start supplying our customers. The beauty of Pasadena is that it’s between our production and our customers, and we plan to continue with that. That strategy still holds, and I’m excited to see it start to happen going forward.

5 thoughts on “CVX Pasedena

  1. Well unfortunately this looks like chevron to me – could be shell or BP I guess

    NGL Energy Partners LP (NYSE: NGL) (“NGL” or the “Partnership”) announced today that the Partnership recently signed a new long-term produced water transportation and disposal agreement with a super major producer.

    The new agreement is with a producer operating in Loving County within the core of the Delaware Basin and includes a fifteen-year acreage dedication. The Partnership plans to use its existing infrastructure and significant disposal capacity to service this new contract, as it has with other recent dedications.

    “We are extremely pleased to announce this new commitment with a current customer. NGL continues to deliver reliability and long-term value to our customers. In the current environment, the dedication demonstrates the confidence our customers have in NGL’s ability to deliver reliable midstream services,” said Doug White, EVP Water Solutions.

    NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Delaware Basin. The Partnership’s Water Solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas, the Midland and Eagle Ford Basins in Texas, and the DJ Basin in Colorado.

    Liked by 2 people

  2. Correct me if I’m wrong on the post and bsmith’s comment: there’s competition brewing in the water biz (understandable) whereas the long-term prospects on production continues to improve via refined products demand?

    Liked by 1 person

  3. To build on the Chevron’s downstream demand: I recall from the most recent investor presentation that CVX had a decent amount in DUCs & permits built up. Dunno how this future production plays out near term, but long-term, I’d be bullish.

    Liked by 1 person

  4. CVX just bought Noble Energy. Captured another 92000 acres in the Delaware Basin. CVX will now become an even bigger portion of TPL revenue. Who here believes that CVX will eventually buy out TPL? They are obviously betting a very large portion of their future on the Permian. Does it make sense for them to continue to pay royalties for decades or just own the whole darn thing? I’m sure they would like to own TPL (other than the thousands of acres of “grazing” land), but perhaps the valuation doesn’t make sense to them at this point? CVX must have done extensive valuation research on TPL over the years, I wonder what they think it is worth today…..

    Liked by 2 people

    • While I’m risking stating the known here, CVX did acquire Texaco ~ 20 yrs ago, which as we know owned TXL for ~ 40 yrs prior. Thus, it stands to reason that CVX knows more about TPL and their estate more than (probably) any other competitor. I wouldn’t be surprised if an outright acquisition of the remainder has crossed more than one mind @ CVX.

      This, to me as an owner, is a nice option to build into the thesis. I’d love to get taken out at a wonderful premium, haha.

      Liked by 2 people

Comments are closed.