(By Balaseshan) Chevron Corp. (NYSE: CVX), the second-largest oil company in the United States, said it will consolidate its supply and trading functions into a single group within its Gas and Midstream business.
"These changes will more tightly integrate our supply and trading activities and allow our Gas and Midstream organization to create value across our upstream and downstream assets," said Chevron Chairman and CEO John Watson.
The new Gas and Midstream business will be effective June 1, 2013. Until now, Chevron's Downstream business oversaw its trading operations for crude oil and refined products, while Gas and Midstream business was responsible for Chevron's natural gas and liquefied natural gas trading operations.
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Watson said Joseph Geagea will lead the new organization and retain his title as corporate vice president and president, Chevron Gas and Midstream.
On January 10, Chevron said in its interim update that earnings for the fourth quarter are expected to be notably higher than last quarter.
Upstream results are projected to be higher between sequential quarters, reflecting increased gains on asset transactions and higher liftings. Downstream earnings in the fourth quarter are also expected to be higher, largely reflecting a positive swing in timing effects, despite a sharp decline in industry refining margins.
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The company's general guidance for the quarterly net after-tax charges related to corporate and other activities is between $300 million and $400 million. Total net charges for the fourth quarter are expected to be notably higher than the general guidance range.
CVX is trading down 0.57% at $115.79 on Thursday. The stock has been trading between $95.73 and $118.53 for the past 52 weeks