SAN RAMON, CA – Chevron Corporation (NYSE:CVX), a $285.7 billion energy giant with a "GOOD" financial health rating according to InvestingPro, has made changes to its corporate bylaws, affecting director resignation requirements and proxy access provisions, as revealed in a recent filing with the Securities and Exchange Commission (SEC).
On Monday, the multinational energy corporation's Board of Directors approved amendments to the company's bylaws, effective immediately. Specifically, the board removed the mandate for a director to offer resignation if they fail to receive a majority vote during uncontested elections, a policy now solely addressed within the company's Corporate Governance Guidelines.
Additionally, the board eliminated a clause that previously made any interpretation or decision under the proxy access bylaw binding on all parties, including shareholders and the corporation itself. This change potentially alters the dynamic between the company's management and its shareholders concerning nominations and elections to the board.
For investors seeking deeper insights, InvestingPro analysis shows Chevron has maintained 54 consecutive years of dividend payments, demonstrating strong shareholder commitment.
These modifications to the bylaws were detailed in an 8-K filing with the SEC and are part of the company's ongoing governance practices. The revised bylaws were filed as Exhibit 3.2 to the report and came into effect on December 4, 2024.
The adjustments follow Chevron's commitment to aligning its governance with best practices and shareholder interests. The company, headquartered in San Ramon, California, is one of the world's leading integrated energy companies and operates under the Standard Industrial Classification code for Petroleum Refining.
Currently trading near its 52-week high with relatively low price volatility, Chevron's stock appears slightly undervalued based on InvestingPro's comprehensive Fair Value analysis, which factors in multiple valuation metrics and industry comparisons.
Chevron, which has a history dating back to its former identities as ChevronTexaco Corp and Standard Oil Co of California, is incorporated in Delaware and ends its fiscal year on December 31.
The information regarding these changes is based on a press release statement provided by Chevron Corporation.
In other recent news, Chevron Corporation has completed a refinery retrofit in Pasadena, Texas, increasing its capacity by nearly 15 percent. This is part of Chevron's strategy to process more crude from the Permian Basin and supply more products to the U.S. Gulf Coast market.
Additionally, Chevron has announced a reduction in its 2025 capital expenditure budget, aiming to enhance cash flow. The Permian Basin budget is set to decrease by up to 10%, although the company plans to continue increasing its output from the region next year.
Analysts from Piper Sandler and BofA Securities have expressed positive outlooks for Chevron, citing the company's strategic shift towards increased cash flow. BofA Securities upgraded Chevron to a Buy rating, highlighting the company's strong growth outlook driven by projects in the Gulf of Mexico, Tengizchevroil, and CP Chem.
Truist Securities also increased its price target on Chevron shares, maintaining a Hold rating, based on expectations of improved capital efficiency.
Lastly, Chevron reported Q3 2024 profits of $4.5 billion or $2.48 per share, following a 7% increase in global production.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.