Extensive Cyclone Damage Keeps Chevron's Wheatstone LNG Offline for Weeks
CVX sits 60% above its 52-week low of $132.04.
Summary
Chevron has confirmed that its Wheatstone liquefied natural gas (LNG) plant in Western Australia sustained extensive damage from Tropical Cyclone Narelle, rendering both 8.9 million-ton-a-year production trains offline. This update follows earlier reports of significant outages at Wheatstone and Gorgon due to the cyclone. The company stated that the damage at Wheatstone is more severe than at its Gorgon plant and worse than from previous cyclones, indicating that full production is unlikely to resume for several weeks. This prolonged operational disruption represents a material negative impact on Chevron's LNG output and overall production guidance. Traders will closely monitor the progress of repairs and the revised timeline for the facility's return to full operation.
At the time of this announcement, CVX was trading at $211.25 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $420.4B. The 52-week trading range was $132.04 to $214.71. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.