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Chevron to Undergo Scrutiny After Angola Platform Tragedy

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Key Takeaways

  • Chevron faced a deadly Angola platform fire just weeks after leadership warned of safety near-misses.
  • The May 20 incident killed 3 workers and injured 15, triggering internal reviews and scrutiny.
  • CVX executives stress safety culture after multiple close calls in routine offshore operations.

Chevron Corporation’s (CVX - Free Report) CEO, Mike Wirth, issued a stark internal warning just weeks before a deadly incident on its offshore Angola platform. In a video issued on April 29, Wirth noted a concerning rise in serious near-misses and stressed the importance of reinforcing safety standards. His message, titled "Do it safely or not at all," urged employees to increase the safety practices, irrespective of facing the challenges inside and outside Chevron.

Deadly Incident Raises Red Flags

On May 20, a fire erupted on Chevron’s deepwater platform 60 miles off Angola’s coast, killing three workers and injuring 15. The tragedy struck shortly after Chevron’s cost-cutting announcement in February, which included laying off up to 20% of its workforce. The incident has sparked an ongoing investigation and some injured workers remain under medical care.

Renewed Emphasis on Safety Culture

Clay Neff, Chevron’s newly appointed upstream president, echoed Wirth’s concerns in a May 30 video. He highlighted that many incidents were close calls involving routine tasks, emphasizing that proper planning, risk awareness and the right skills are vital. Neff lays emphasis on employees’ lives, saying that all the staff going back home safely is all that matters to them. The company now faces mounting pressure to uphold this principle amid heightened scrutiny.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companiesthat participates in every aspect related to energy, from oil production to refining and marketing. Currently, CVX has a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector might look at some better-ranked stocks like Flotek Industries, Inc. (FTK - Free Report) , Global Partners LP (GLP - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 55.88% year-over-year growth.

Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. GLP owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners’ 2025 earnings indicates 17.84% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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