Chevron CEO Mike Wirth detailed the company’s strategy to harness U.S. natural resources to meet soaring artificial intelligence power demand — without passing the cost along to consumers. "As data centers need more and more electricity, and as we’re seeing pressure on the grid and electricity prices, we’re working to build an energy park that’s not connected to the grid, so the costs don’t flow to all consumers," Wirth told "Mornings with Maria," describing the approach as an advantage that allows the comp ...

Core Viewpoint - Ananym Capital has acquired a significant stake in Siemens Energy and is advocating for the company to concentrate on its gas turbine and power generation business while spinning off its less profitable wind power segment [1][2]. Group 1: Investment Strategy - Ananym Capital expresses skepticism regarding the profitability of Siemens Energy's wind power segment, contrasting it with the promising outlook for the gas turbine business, driven by increased demand for reliable baseload generation capacity from data centers [2]. - The activist investor believes that Siemens Energy's true value will remain hidden as long as the gas and wind businesses are combined, suggesting a separation could unlock greater value [3]. Group 2: Background of Activist Investor - Charlie Penner, the founder of Ananym Capital, previously led a campaign against ExxonMobil, advocating for increased investment in renewable energy sources like wind and solar [4]. - The activist investor's past actions highlight a shift in focus, as Penner now emphasizes the potential of gas turbines over wind energy, indicating a strategic pivot in investment priorities within the energy sector [4][6].

Core Viewpoint - Chevron Corp. is initiating a new business line by providing natural gas-fired power to a data center in West Texas, aiming to capitalize on the growing demand for energy driven by artificial intelligence [1][3]. Group 1: Project Details - The data center project is in exclusive discussions with an unnamed end user, with a final investment decision expected early next year [2]. - The facility is projected to be operational by 2027, with a future capacity to generate up to 5,000 megawatts [2]. - The project is anticipated to reach a capacity of about 2,500 megawatts by its third year, equivalent to more than two nuclear reactors [4]. Group 2: Market Context - There is a significant demand for energy to power data centers, which are increasingly located near fuel sources rather than population centers [3]. - Chevron is strategically positioned in the Permian Basin, which produces an excess of natural gas, often leading to flaring due to pipeline constraints [3]. Group 3: Financial Strategy - Chevron aims to grow production through 2030 while reducing capital expenditures, which is expected to increase free cash flow by 14% annually over the next five years [6]. - The company has partnered with Engine No. 1 to secure an order for seven large natural gas turbines from GE Vernova Inc., enhancing its competitive edge in this new venture [5].

Group 1 - Chevron is entering a new business line focused on supplying natural gas power to data centers, with a project base in West Texas [1] - The project aims for a power generation capacity of up to 5,000 megawatts by 2027, with full operational capacity expected in the third year at approximately 2,500 megawatts [1] - Chevron's CFO stated the company has ample natural gas resources and is well-positioned to create a competitive project [1] Group 2 - Chevron has partnered with Engine No. 1, a key step in its AI initiative, and has secured orders for seven large gas turbines from GE Vernova [2] - The company plans to detail its power business strategy at its investor day, projecting an average annual free cash flow growth of 14% over the next five years, reaching $30 billion by 2030 [3] - Chevron aims to reduce its annual capital budget from $19-22 billion to $18-21 billion by 2030, while maintaining a stock buyback target slightly above $10 billion [3]

Core Viewpoint - ExxonMobil is implementing an auto-voting system for retail shareholders to strengthen its position against climate-focused investor campaigns, allowing individual investors to align their votes with management recommendations unless they opt out [1][2]. Group 1: Auto-Voting System - The auto-voting system is designed for retail investors, who hold approximately 40% of Exxon's stock, and aims to increase participation in proxy voting, which has historically been low [1]. - Fewer than 25% of these retail investors typically cast ballots during proxy seasons, making Exxon vulnerable to activist campaigns [1]. Group 2: Impact on Shareholder Dynamics - Analysts suggest that this new program could significantly alter outcomes at annual meetings, providing management with a stronger base of support against activist proposals [2]. - A governance consultant noted that the auto-voting mechanism would complicate efforts for activists to win votes on their proposals, thereby reinforcing management's position [2]. Group 3: Reactions and Implications - The initiative has faced criticism from shareholder advocates who argue that default voting structures may diminish dissenting voices and weaken the influence of proxy advisors [2]. - Conversely, some view the strategy as an effective defense against disruptive campaigns, potentially transforming a passive retail base into a protective barrier against climate-related shareholder challenges [3].

Energy usage at data centers is already immense, and it will be even higher in the future because AI requires a tremendous amount of computing power. That's fueling the need for more electricity in the country to power AI data centers.Chevron (CVX 1.31%) sees the country's growing power needs as a huge opportunity. It's planning to profit from the power surge by building gas-fired power plants to support AI data centers. That will enable the energy giant to maximize the value of more of the natural gas it p ...

Core Viewpoint - Chevron Corporation is focusing on operational updates, growth prospects, cost reduction initiatives, and aims to generate approximately $10 billion in additional free cash flow by 2026 [1] Group 1: Operational Updates - In Kazakhstan, Chevron plans to ramp up Tengiz to full production of approximately 1 million barrels of oil equivalent per day (MBOE/d) within three months, with key milestones including first oil at the Future Growth Project (FGP) which will add 260,000 barrels per day (bpd) to capacity [2] - The Tengiz project is expected to generate around $5 billion to $6 billion in free cash flow in 2025/2026 at a Brent price of $70 per barrel, including dividends and loan repayments [2] Group 2: Growth Prospects - Chevron highlighted strong performance in the Permian Basin and reaffirmed its target of approximately 1 MBOE/d production in 2025, with an expected compound annual growth rate (CAGR) of about 6% through 2026 [3] - The company anticipates approximately $2 billion in free cash flow growth from the Permian by 2026, with long-term production expected to remain around 1 MBOE/d [3] Group 3: Cost Reduction Initiatives - Chevron is focused on cost discipline, aiming for structural savings of $2 billion to $3 billion by the end of 2026, with approximately $1.5 billion to $2 billion targeted by the end of 2025 [4] Group 4: Low-Carbon Initiatives - Investor discussions included Chevron's collaboration with Engine No. 1 and GE Vernova to develop low-carbon power solutions, targeting up to four gigawatts for U.S. data centers, with seven GE turbines scheduled for delivery in late 2026 to 2027 [5] Group 5: Financial Outlook - The analyst reaffirms a Buy rating on Chevron, projecting a volume and free cash flow inflection in 2025/2026 driven by strategic projects including TCO, Permian, and the Gulf of America [6] - The company is expected to have an estimated capital returns yield of around 12% in 2026, focusing on shareholder returns [6]