[Editor's note: This story was updated at 2:50 p.m. CST Aug. 22.]
Chevron Corp. (NYSE: CVX) CEO John Watson will step down by next month and likely be replaced by Vice Chairman Mike Wirth, a source familiar with the matter told Reuters on Aug. 22.
The unexpected shakeup at the top of one of the world's largest oil and natural gas producers comes just as it is emerging from a global commodity price slump and is beginning to reap the fruits of a multibillion-dollar expansion spree.
Chevron spokesman Kent Robertson declined to comment.
Wirth, 56, has been vice chairman since February and also runs the company's pipeline division. He previously ran Chevron's refining unit, which has grown rapidly in recent years, with the company investing heavily in expansion and renovations.
Chevron last month posted higher-than-expected second-quarter profits on higher production and oil prices and lower spending on large projects.
Under Watson, a 60-year-old Chevron veteran who became CEO in 2010, the company has been shifting additional resources to shale oil projects that promise quicker returns.
Watson, an economist by training, rose through the company's ranks, served as its CFO, and earlier oversaw the integration of Texaco operations following the 2000 acquisition.
Shares of San Ramon, Calif.-based Chevron rose 0.5% to $106.35 in afternoon trading. The stock has risen about 4% in the past year.
Recommended Reading
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-05-03 - The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023.
Pemex Reports Lower 2Q Production and Net Income
2024-05-03 - Mexico’s Pemex reported both lower oil and gas production and a 91% drop in net income in first-quarter 2024, but the company also reduced its total debt to $101.5 billion, executives said during an earnings webcast with analysts.
Chouest Acquires ROV Company ROVOP to Expand Subsea Capabilities
2024-05-02 - With the acquisition of ROVOP, Chouest will have a fleet of more than 100 ROVs.
SLB, OneSubsea, Subsea 7 Sign Collaboration Deal with Equinor
2024-05-02 - Work is expected to begin immediately on Equinor’s Wisting and Bay Du Nord projects.
SilverBow Makes Horseshoe Lateral in Austin Chalk
2024-05-01 - SilverBow Resources’ 8,900-foot lateral was drilled in Live Oak County at the intersection of South Texas’ oil and condensate phases. It's a first in the Chalk.