(NYSE: CVX) is one of the largest integrated energy companies on the planet. But even an integrated business model can't shield the company from the basic dynamics of the oil industry -- one of the biggest being that oil and natural gas are depleting assets. Here's what Chevron is doing about it.

Just before the pandemic hit in 2020, Chevron found itself in a high-stakes bidding match with Occidental Petroleum to acquire Anadarko Petroleum. In the end, with the help of Warren Buffett's Berkshire Hathaway, Oxy won the day.

Chevron decided it wasn't worth the risk of overpaying, which worked out well for it given the way oil prices plunged during the pandemic. Because of the debt Occidental had taken on, it was forced to cut its dividend. Meanwhile, Chevron kept increasing its payouts, thanks largely to its ability to lean on its balance sheet as it muddled through the industry's weak patch.

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Source Fool.com