Chevron Could Be Hoarding Cash For The Acquisition Of Chespeake

Chevron Corporation (NYSE:CVX)’s huge cash reserve of $21 billion has come into media focus and speculation runs rife that the company may use it to acquire smaller companies. Significantly, if Chevron Corporation (NYSE:CVX) chose to extinguish all its debt, there would still be $11 billion left in hand. With interest rates running at all-time lows, treasury income from the cash is surely not a motive for Chevron. Why then is it hoarding so much of the green stuff?

An article in the WSJ speculates that the company may be contemplating acquisitions,...