Chevron Corporation (NYSE:CVX) shares are trading higher Thursday. According to a city statement, the company will reportedly pay the Richmond City Council $550 million over 10 years.

The company will pay the $550 million in annual installments from July 1, 2025, to June 30, 2035, reported Reuters.

This is part of an agreement that led to the dropping of a proposed ballot measure for a new tax on the company's Richmond refinery.

Richmond planned to propose a tax on Chevron's refinery, which processes around 250,000 barrels of crude oil daily.

As part of the settlement approved on Wednesday, the Richmond City Council agreed to withdraw the proposed tax measure.

This week, the company disclosed that it had begun oil and natural gas production from the Anchor project in the deepwater U.S. Gulf of Mexico.

Chevron held cash and equivalents of $4.008 billion as of June-end.

Investors can gain exposure to the stock via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).

Price Action: CVX shares are up 1.15% at $146.33 at the last check Thursday.

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