Vivek Ramaswamy – an activist investor who’s exposed to Chevron Corporation (NYSE: CVX) through his recently launched exchange-traded fund wants the energy giant to produce more oil over the next decade.
Ramaswamy wants Chevron to focus on shareholder returns
In a letter to Mike Wirth – the Chief Executive of Chevron Corporation, he said the multinational should cut spending on energy transition to boost shareholder returns.
Committing to lowering Scope 3 emissions that Chevron did last year, he added, is not in the best interest of the shareholders. On CNBC’s “Squawk Box”, Ramaswamy said:
The basic question I ask is why a Scope 3 emissions reduction proposal in the best interests of Chevron as a business. I don’t believe there’s a good answer to that question because this makes no business sense for Chevron.
Wall Street currently has a consensus “overweight” rating on the stock that’s down more than 2.0% on the energy news this morning.
Activist investor expects support from Warren Buffett
In 2021, Warren Buffett countered proposals that Berkshire Hathaway should detail what it’s doing to address the climate issues in annual reports.
Ramaswamy, therefore, expects the legendary investor to join him on this call. Being the largest individual shareholder, Buffett has a meaningful impact on Chevron Corporation.
I hope a new post-ESG voice can drive behaviour in the other direction to go back to creating value for shareholders. There’s no clarity about whether or not the ESG measures are in the best interests of the company and its shareholders.
Over a month ago, Chevron reported another blockbuster quarter on elevated oil prices. The energy stock is up more than 25% versus the start of 2022.
The post This activist investor is pushing Chevron to ‘boost’ oil production appeared first on Invezz.
