Chevron Takes Action as Venezuela Faces Tightening Feedstock Supplies
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Chevron's Role in Venezuela: Chevron has stepped in to provide essential feedstock supplies to Venezuela amidst disruptions caused by geopolitical tensions, ensuring compliance with U.S. laws while maintaining operational continuity.
Impact of Recent Incidents: A U.S. destroyer's encounter with a Russian vessel has complicated Venezuela's crude-loading activities, highlighting the challenges Chevron faces in navigating regional maritime logistics.
Chevron's Operations and Compliance: Despite pressures, Chevron continues to operate responsibly in Venezuela, having expanded its activities under a limited U.S. license that allows for increased output without transferring revenue to the Venezuelan government.
Investment Opportunities in Energy Sector: Investors may consider top-ranked energy stocks like Drilling Tools International, Par Pacific Holdings, and USA Compression Partners, which are currently rated as strong buys, indicating potential growth in the sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 171.190
Low
158.00
Averages
176.95
High
206.00
Current: 171.190
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron's Q4 Earnings Preview Highlights Venezuela Opportunity
- Revenue Expectations Decline: Analysts forecast Chevron's Q4 revenue at $48.57 billion, down from $52.23 billion last year, indicating challenges amid market volatility that could affect investor confidence.
- Earnings Per Share Forecast: Expected EPS is $1.45, lower than last year's $2.06, and while the company has beaten estimates in five of the last ten quarters, this decline may raise market concerns.
- Divergent Analyst Ratings: Morgan Stanley maintains an Overweight rating but lowers the price target to $174, while Jefferies keeps a Buy rating and raises the target to $189, reflecting mixed market sentiment on Chevron's future performance.
- Venezuela Opportunity: Chevron could be one of the biggest beneficiaries of U.S. military actions in Venezuela, with investors keenly watching how the company assesses this market opportunity and its implications for short- and long-term financials.
Continue Reading
Chevron Q4 Earnings Exceed Expectations Despite Year-over-Year Decline
- Earnings Performance: Chevron's Q4 net profit fell to $2.77 billion, or $1.39 per share, down from $3.24 billion, or $1.84 per share a year ago, yet the adjusted profit of $3 billion exceeded Wall Street expectations, demonstrating resilience in a low oil price environment.
- Revenue Decline: Q4 revenues decreased by 10% year-over-year to $46.79 billion, primarily due to lower crude oil prices and severance costs related to the Hess acquisition, reflecting the challenges in the market environment.
- Production Growth: Total production rose over 20% year-over-year to 4.05 million boe/day, with the Hess acquisition contributing 261,000 boe/day, indicating the success of the acquisition strategy and robust growth in the Permian Basin.
- Future Outlook: Chevron expects production to grow by 7%-10% by 2026, excluding asset sales, boosted in part by projects in Guyana and the U.S. Gulf, showcasing the company's confidence in future growth.
Continue Reading