at CNBC.com (Wed, 5:03PM)
at CNBC.com (Wed, 4:07PM)
at CNBC.com (Wed, 3:00PM)
at CNBC.com (Wed, 12:59PM)
at Zacks.com (Wed, 10:10AM)
at CNBC.com (Tue, 7:55PM)
at CNBC.com (Tue, 7:36PM)
at CNBC.com (Tue, 2:25PM)
at CNBC.com (Tue, 2:11PM)
at Zacks.com (Tue, 12:20PM)
- Chevron Corporation is one of the dividend stalwarts that has weathered many wars and recessions over the decades.
- While the current downturn in oil and energy prices provide downward pressure on stock prices from declining earnings, it also provides an excellent buying opportunity.
- Chevron is a Dividend Champion that has raised dividend for 27 consecutive years with a 5-yr dividend growth rate of 9%.
- The current yield of 4.25% provides a historically remarkable entry point for long term investors.
Chevron Corporation: Is Now The Right Time To Add To Your Position?
- Chevron Corporation is a global integrated oil company (formerly ChevronTexaco) that has interests in exploration, production, refining and marketing, and petrochemicals.
- CVX has an impressive business model. Its oil and gas development project pipeline is among the best in the industry, with many large, multi-year projects.
- Since the company operates as an integrated producer, the company is susceptible to downside risk from weakness in the global economy.
Here's Why I Am Seriously Considering Selling My Altria Stock To Buy Chevron
- Altria is very aggressively valued considering its poor earnings this year. This has pushed down its dividend yield to rarely-seen lows.
- By comparison, Chevron is very cheap on a valuation basis due to the decline in oil, but its earnings are not as bad as its stock performance implies.
- The end result is that Altria and Chevron offer similar dividend yields, which hasn't happened in the past ten years.
- This is a unique opportunity to swap a stock with low earnings potential for a company that I believe has much better fundamentals, without losing income.
- With oil continuing to trade lower, investors should only buy high-quality oil stocks, and dollar cost averaging is a wise strategy.
- With its integrated model and natural gas exposure, Chevron should fare better than pure oil names.
- Production should grow slightly in 2015, and Chevron has the ability to cut back cap-ex to maintain a strong balance sheet.
- At 13x 2015 earnings and with a 4.1% dividend yield, now is a good time to start buying Chevron.
Chevron Focused On Expanding Production, Long-Term Prospects Remain Strong
- Chevron is working toward meeting its 3.1 million per day production target by 2017. It recently announced the commencement from two projects located in the Gulf of Mexico.
- Q3 results kept investor confidence intact. Earnings rose significantly, despite oil prices slipping to their lowest levels. Production declined by a marginal 0.7%.
- Oil prices have not diverged significantly from Q3. It is likely that Q4 earnings will be as strong, if not stronger, as last quarter's earnings result.
- Chevron has been named as one of the Top 25 "Dividend Giant" by the ETF Channel, as ETFs held nearly $10.17 billion worth of stocks of this company.
- The performance in the previous quarter, and the likelihood of a good performance in the next quarter is reason enough to believe that Chevron is a viable investment option.
- Chevron's stock has been pummeled since July on oil price declines.
- The business is diversified and strong and should produce profits in any oil environment.
- A reversion trade and the yield are enough to get me into CVX right now.
- Exxon Mobil and Chevron make for good long-term investments at current prices for a number of reasons.
- Energy demand is expected to rise in the future, and Exxon Mobil and Chevron are in excellent positions to accommodate this growing need with their vast reserves.
- Both companies have integrated business models, in which the downstream segment can provide a cushion for earnings in the face of lower oil prices.
- Both companies have a long history of earnings and dividend growth, strong balance sheets, and dividend yields that are currently at their highest levels in a long time.
- Chevron's legacy dates back to 1876. 75% of the company's production comes from outside the U.S.
- The company began increasing dividends in 1988; the compounded growth rate over the last 10 years is over 10%.
- From mid-2009 to mid-2014, Chevron's return beat that of the S&P 500 by an average of 5.6% per year.
A 4% Dividend Yield Portfolio: 'Chevron? Really??'
- A 4% dividend rate portfolio was introduced with one representative coming from the Oil & Gas sector.
- Several concerns were raised regarding this pick, especially following last week's events.
- While turbulence might occur in the short term, here is why I am still bullish on Chevron.
- The recent decline in oil prices makes big oil attractive and Chevron popped up on a recent Graham screen.
- Chevron is now my third pick in my “Stocks For The Long-Run” series after Starbucks and Walgreen Co.
- Chevron looks to be cheaper and offers better value than Exxon Mobil.
- The recent slide in oil prices has resulted in lower share prices for oil companies, Chevron included.
- This shouldn’t be much of a surprise.
- However, the way in which you think about this action can help to underscore your underlying investing thesis.
Chevron: A Great Opportunity Reveals Itself, But Don't Sweat The Oil Price
- The oil price slump on Friday brought most oil companies down to their knees.
- Panic in the oil market is a good opportunity to add a dividend-strong energy company like Chevron to an investment portfolio.
- Chevron is now the cheapest company compared to its U.S. peers and trades at only 11.5x forward earnings.
- Savvy investors take advantage of the market panic, they don't participate in it.
- CVX is suitable for both the Enterprising Investor and the more conservative Defensive Investor following the ModernGraham approach.
- According to the ModernGraham valuation model, the company is undervalued at the present time.
- The market is implying 0.81% earnings growth over the next 7-10 years, which is significantly less than the rate the company has seen in recent years.
Chevron: Thanks To Falling Oil Prices, Chevron Is Now A Compelling Buy
- Chevron's shares were punished lately for falling crude oil prices.
- Chevron's current valuation is now very reasonable.
- Oil prices are only temporarily depressed, but should return to higher price levels in the medium term.
- Chevron's shares yield 3.61%, which makes waiting for higher oil prices much more bearable.
Chevron Q3 Earnings Review: Permian Operations Strong, International Shale Moving Forward
- Chevron raised its Permian growth projections on the back of strong results.
- With over 1.5 million net acres in the Delaware and Midland Basins, Chevron has over 13,000 possible drilling locations on its acreage.
- Targeting the Avalon shale through the Salado Draw program will give Chevron a better idea of what to expect on its expansive acreage.
- Chevron is moving forward with its exploration plan for the Duvernay shale, putting the $1.5 billion it just raised to good use.
- Its drilling programs in the Duvernay and the Vaca Muerta shales are targeting billions of barrels of crude and hundreds of trillions of cubic feet of natural gas.
Update: Three Years Later, Chevron And Hess Produce First Oil From Tubular Bells
- It's official, the Tubular Bells is now operational.
- The success of this project is a big vote of confidence for Chevron's growth plan and the future development of the Stampede field.
- This is a huge milestone for Chevron's plan to steadily grow its production out of the Gulf of Mexico.
- The current Cold War will be shorter than the last one.
- It is being fought out over oil prices. The glut hurts Russia and Iran.
- The conflict will last months not years, and result in higher prices, benefiting strong balance sheets.
Today, 5:19 PM
- Chevron (NYSE:CVX) says it is canceling plans to drill for oil in the Beaufort Sea in Canada's Arctic because of economic uncertainty in the industry as oil prices fall.
- In a letter to Canada's National Energy Board, CVX said it withdrew from a hearing into Arctic drilling rules because it is delaying indefinitely any plans to drill in the EL 481 block.
Today, 2:20 PM
- New York Gov. Cuomo's administration says it will ban fracking statewide, citing health concerns and what it considers as limited economic benefits to drilling.
- NY's acting health commissioner said at a cabinet meeting in Albany today that studies on fracking’s effects on water, air and soil are inconsistent, incomplete and raise too many “red flags” for the state to allow it; the state Department of Environmental Conservation will now issue a legally-binding recommendation prohibiting fracking.
- The state has had a de facto moratorium on fracking for more than six years, so nothing really changes with today's decision.
- Parts of New York sit atop the gas-rich Marcellus shale formation, whose top producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN, AR.
Today, 9:53 AM
- FMC Technologies (FTI +2.3%) says it has won a $268M subsea systems contract for the Chevron-led (NYSE:CVX) Agbami deepwater project offshore Nigeria.
- FTI says it has supported the Agbami field development for several years, and the new subsea equipment agreement will provide additional production and help extend the life of the project.
Mon, Dec. 15, 10:57 AM
- Chevron (CVX +0.2%) plans to withdraw from a $10B shale gas deal with Ukraine, according to a senior Ukrainian presidential official, with local media citing a recent tax increase on energy companies as prompting the move.
- Ukraine signed a shale gas production-sharing agreement with CVX in late 2013, just months before mass protests in Kiev ousted former president Yanukovich and plunged the country into its current crisis with Russia.
- CVX's deal to develop the Olesska field in western Ukraine followed a similar shale gas agreement with Royal Dutch Shell (RDS.A, RDS.B), whose deal also could be under threat as the gas deposit intended for development is close to the eastern territories now controlled by pro-Russian separatists.
Thu, Dec. 11, 6:36 PM
- Lawyers for a group of Ecuadoran villagers are asking Canada’s high court to grant their clients access to Canadian courts to enforce a $9.5B Ecuadorian judgment against Chevron (NYSE:CVX) for rainforest damage.
- Lawyers have fought for years in several countries over who is responsible for pollution in the rainforest, and they are arguing that the case should be heard in Canada because CVX has a Canadian subsidiary.
- The group has not pursued CVX in the U.S., where a New York judge ruled in favor of the company’s counter-suit that argued the judgment from the Ecuador courts was obtained fraudulently by corrupt means; the New York decision is now under appeal.
- A year ago, the Ontario Court of Appeal overruled a lower court decision and said Ontario is an appropriate jurisdiction to determine whether the Ecuadoran judgment should be enforced; CVX is now looking for the country’s top court to overturn the appeal court.
Thu, Dec. 11, 10:45 AM
- Investors in giant gas export terminals from Australia to Canada are facing the prospect of losing nearly $250B plowed into the projects during the past seven years, as weaker oil prices threaten to wipe out returns.
- Oil-linked pricing means LNG producers stand to get much less revenue than expected on delivery of their first shipments, and oil prices have fallen so low that U.S. shale gas producers with plans to export the usually cheaper fuel to Asia suddenly find themselves facing a much tougher competitive environment.
- LNG prices in Asia have sunk below $10/MMBtu, while most Australian LNG projects would need to sell the commodity for at least $12-$14 to break even; for example, the breakeven point for the $54B Gorgon project under construction by Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (RDS.A, RDS.B), is ~$17.7/MMBtu.
- Other relevant tickers: LNG, TOT, COP, CEO, FCG, GASL, OTCPK:BRGXF, OTCQX:BRGYY, OTCPK:STOSF
Wed, Dec. 10, 12:58 PM
- Energy stocks are slammed across the board as oil prices take another nosedive (I, II), with the losses heaviest on shares of small, U.S.-based oil and gas producers.
- “Financial leverage is being thrown out the window, and everything else is being purged as well,” says Simmons analyst Bill Herbert, who adds that cuts to production budgets in the coming year likely will mean more pain for oil service companies.
- Among the hardest-hit shares: TPLM -15.2%, CRK -12.4%, GDP -11.9%, NOG -9.5%, AREX -8.6%.
- Investors have been less quick to dump shares of integrated oil companies, but today they have been smacked too: XOM -2.8%, CVX -2.9%, COP -2.3%, BP -2%, RDS.A -2.2%, TOT -2.3%.
- Today's worst performers on the S&P 500 include OKE -8.2%, DNR -7.4%, NE -5.6%.
- Service companies also are down: SLB -2.6%, HAL -2.7%, WFT -6.6%, BHI -2%.
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, XES, IEZ, PXI, FENY, PXJ, RYE, FXN, DDG
Tue, Dec. 9, 2:57 PM
- Chevron (CVX +0.3%) is granted rights to explore three blocks offshore New Zealand in the Pegasus and East Coast Basins southeast of North Island, one of the country’s two main islands.
- The license, which begins in April 2015, covers more than 6.26M acres in a frontier basin with water depths from 2,600 to 9,800 ft.
- CVX will operate the blocks and hold a 50% stake, while Statoil (STO -0.4%) will own the remaining interest.
Tue, Dec. 9, 2:34 PM
- Chevron (CVX +0.5%) says it is still in the process of reviewing and evaluating its capital spending plans and expects to delay the release its 2015 budget until early next year.
- CVX normally releases its capital budget for the upcoming year in mid-December, and the postponement follows a 20% cut in ConocoPhillips’ 2015 spending plan amid falling oil prices.
- Analysts expect CVX to cut capex by ~11% in 2015 to $35.3B from $40B this year; analysts at Wolfe Research expect CVX to cut spending on share buybacks before touching dividend payouts or the drilling budget.
Tue, Dec. 9, 10:58 AM
- ConocoPhillips' (COP +0.1%) move to cut next year's capital spending by 20%, including less on some large projects that are nearing completion, is a clear sign that big energy companies are taking a second look at their mega-projects costing billions of dollars as they face the fallout of declining oil prices, WSJ reports.
- Big companies seek out big projects in normal times, since they have the engineering expertise to develop fields beyond the grasp of smaller firms and need to keep adding reserves to offset production declines in mature areas, but oil at $63/bbl is not part of the equation; Shell (RDS.A +0.1%) says a new project must be able to break even at $70, and BP (BP -0.7%) says it uses a long-term planning price of ~$80 when considering new investments.
- Bernstein Research analyst Iain Pyle says companies will have to review big investments; if prices fail to rebound soon, “what we’re going to see is projects getting canceled.”
- Also: XOM -0.1%, CVX +0.2%.
Fri, Dec. 5, 6:28 PM
- The rout in oil prices has knocked $46M off the potential compensation for Nabors Industries (NYSE:NBR) CEO Anthony Petrello, the highest-paid oil executive in the U.S., whose future pay passed $100M in July but has fallen to $58M as shares in the company plunged 57% during the last five months.
- “The land rig sector, of which Nabors is the biggest, is facing some severe headwinds on the earnings and cash flow they will make," says Credit Suisse analyst James Wicklund.
- Petrello’s losses are almost twice as much as those of the next four highest-paid U.S. oil CEOs combined; Exxon’s (NYSE:XOM) Rex Tillerson, Conoco's (NYSE:COP) Ryan Lance, Schlumberger’s (NYSE:SLB) Paal Kibsgaard and Chevron's (NYSE:CVX) John Watson lost an average 19%, or ~$24M, of the value of their compensation since July 3, according to Bloomberg data.
Fri, Dec. 5, 5:57 PM
- Mexico's government likely will delay or scale back tenders for some of the oil fields and areas that it planned to offer in the coming months, especially in areas with shale oil where recovery costs are higher than in traditional oil fields, the country's energy minister says.
- Auctions for deepwater fields were not likely to change because they were longer-term investments, but other fields with non-conventional oil, shale gas and shale oil probably would be delayed or reduced in scope.
- In addition to low oil prices, Mexico’s regulators have been struggling with putting together a large bid round in a short period of time with vast new responsibilities and limited staff, analysts say.
- Chevron (NYSE:CVX) and Shell (RDS.A, RDS.B) are among oil majors that have expressed keen interest in getting involved in Mexico.
Fri, Dec. 5, 4:30 AM
- Global oil and gas exploration projects worth more than $150B are likely to be put on hold next year as plunging oil prices render them uneconomic, shows data from Oslo-based research firm Rystad Energy.
- With rising costs of production and analysts forecasting oil to average $82.50 a barrel next year, around one third of the spending on a total of 800 oil and gas projects worth $500B, is unlikely to be approved.
- Related tickers: CVX, TOT, STO, BP, RDS.A
Wed, Dec. 3, 5:41 PM
- Petronas says it is delaying its proposed Pacific Northwest liquefied natural gas terminal in British Columbia, as the economics of the project do not work with oil at ~$70/bbl and as costs remain high.
- The Malaysian firm has planned to invest ~C$36B to cover the LNG plant, shale fields in northeastern B.C. and a pipeline to connect the two.
- Petronas and other global producers including Royal Dutch Shell (RDS.A, RDS.B) and Chevron (NYSE:CVX) are considering exporting LNG from Canada’s Pacific coast to meet rising demand in Asia.
Wed, Dec. 3, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Tue, Dec. 2, 12:15 PM
- Chevron (CVX +1.8%) says oil and natural gas production has begun from the Jack and St. Malo fields development project in the deepwater Gulf of Mexico, 10 years after the fields were first discovered.
- CVX expects total production from the $7.5B project - its costliest active investment in the Americas - to ramp up to 94K bbl/day of crude and 21M cf/day of gas by 2020, with 500M boe from the two fields over their 30-year lifespan.
- CVX has a 50% interest in the Jack field, with Statoil (NYSE:STO) and Maersk splitting the remaining half, and it owns 51% of St. Malo, with co-owners Petrobras (NYSE:PBR), Statoil, Exxon (NYSE:XOM) and Eni (NYSE:E).
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