Chevron relocating headquarters from California to Texas

Oil giant Chevron is moving its headquarters to Texas from California, the latest company to exit the Golden State.

The company on Friday announced its planned corporate relocation to Houston from San Ramon, where it has long been based.

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"The company expects all corporate functions to migrate to Houston over the next five years," Chevron said. "Positions in support of the company’s California operations will remain in San Ramon."

Chevron said about 2,000 of its employees work in San Ramon at the moment and 7,000 are located in Houston.

CEO Mike Wirth and Vice Chairman Mark Nelson will make the move to Houston prior to headquarters relocation becoming official Jan. 1 to "co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners," according to the company.

Texas Gov. Greg Abbott celebrated Chevron's decision to relocate.

"Texas is your true home," he posted on X. "Drill baby drill."

The Houston mayor's office said on X that the move is "Great for Houston!"

Contributing to the company's move is likely California's lawsuit filed last year against five big oil companies, including Chevron, and an industry trade group over climate change. The state has also been leaning more into renewable energy policies.

In addition to Chevron, Tesla, X, SpaceX, Oracle and Hewlett Packard Enterprise have moved their headquarters out of California in recent years.

Also on Friday, Chevron announced the retirements of three executives and released its second-quarter earnings report.

MUSK'S X, SPACEX LATEST COMPANIES TO MOVE HQ TO TEXAS FOR MORE FAVORABLE BUSINESS CLIMATE

Chevron reported earnings of $4.4 billion, or $2.43 per share, in the quarter, compared with $6 billion a year before.

It reported adjusted earnings of $4.7 billion, or $2.55 per share, compared to $2.93 expected by Wall Street analysts, according to LSEG data.

Reuters contributed to this report.