On Thursday, Chevron Corp. (NYSE:$CVX) named Michael Wirth as its new CEO. This move suggests that Chevron is trying to cope with a prolonged period of lower oil prices by hiring an engineer who has ample experience at finding efficiencies and cutting costs.
Wirth will be replacing John Watson on February 1 as chairman and chief executive. Aside from Wirth’s experience in the field, he is also a Chevron lifer who has overseen the company’s broad network of refining and pipeline assets. Wirth has been with the company since 1982, holding a variety of positions with the corporation.
Watson, 60, has led Chevron through an era defined by high and low prices. In one instance, Chevron made several multibillion-dollar investments that exceeded cost expectations.
Chevron has outperformed a number of peers since Watson took over 7 years ago. According to FactSet, the value of shares has risen more than 100%, which includes reinvested dividends. However, Watson believes Wirth is the man for the job, saying “he was selected because of his track record of accomplishment and his breadth of leadership.”
“Mike is exactly what Chevron needs,” said Kevin Holt, who is the chief investment officer for U.S. value equities at Invesco.
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