Chevron Texaco Financial
Chevron is one of the leading integrated energy companies within the United States with its main headquarters in San Francisco, California. Chevron produces approximately 2.5 million of barrels of oil equivalent daily, with 66 percent being oil). Chevron is called "integrated" because it is involved in both upstream and downstream oil sectors. The upstream oil sector is also known as the exploration and production (E&P) sector.
The downstream oil sector denotes the refining of crude oil and selling and distributing of natural gas and crude oil products. This also includes oil refineries, petrochemical plants, petroleum product distribution, natural gas distribution companies, and retail outlets. Thousand of products result from the downstream sector, such products as: heating oil, diesel, lubricants, synthetic rubber, plastics, fertilizers, pesticides, pharmaceuticals, natural gas, and propane.
Texaco, which headquarters were in New York, had also conducted both upstream and downstream activities as Chevron--exploring, producing, transporting, refining, and marketing oil and natural gas. In 1999, Texaco had worldwide revenues of $35.7 billion with a net income of $1.2 billion. Also, in 1999, Chevron had worldwide revenues of $35.4 billion and net income of $2.1 billion.
In October, 2000, both had merged into a company which became the world's fourth largest in oil and gas production. This had been a $35.1 billion transaction. In the combined company, Chevron's shareholders held approximately 61 percent of shares and Texaco's shareholders held about 39 percent of shares, since their shares had been converted to the new company stock, as well.
In the merger, Chevron Texaco Financial figures had reached $66.5 billion in revenues. Together, the company potentially would be able to produce approximately 2.7 million barrels of oil daily; their combined reserves would reach 11 billion barrels. The merger certainly benefitted both parties; however, due to Texaco's decreasing net profit, Texaco had a greater financial benefit.
However, there are two factors which may eventually interfere with some of the company's profit. One is the risk of physical attacks from political militants on Chevron's offshore facilities in Nigeria. Another setback concerns the continuing legal action related to Chevron's operations in Ecuador. The citizens hold Chevron responsible for pollution and other environmental offenses in their country.
Presently, the Chevron Texaco Financial outlook is very positive despite these incidents since it has invested time and energy in its worldwide exploration enterprises, which will certain lead to greater reserves and production in the future. Also, the company has marketing and sales network of an estimated 25, 800 outlets in nearly 75 countries worldwide.
Based in Atlanta, Georgia, Abrams Industries is involved in several markets ranging from construction, real estate, and energy management. Concerning their construction division, Abrams Industries focuses on new construction projects for retail, distribution, expansion projects, and other commercial ventures. In the company's real estate division, they are involved in commercial...