Trump Considers Excluding Exxon Mobil from Venezuela Investment Initiative
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Investment Exclusion Risk: Trump indicated during a meeting with U.S. oil industry leaders that he might exclude Exxon Mobil from a $100 billion investment initiative in Venezuela due to the CEO's labeling of the country as 'uninvestable', which could undermine Exxon's strategic positioning in the Latin American market.
- Production Potential Optimism: In contrast, Chevron's Vice Chair expressed optimism about increasing production in Venezuela by 50% over the next 18 to 24 months by leveraging existing resources, indicating potential growth opportunities despite the uncertain environment.
- Profit Forecast Downgrade: Exxon Mobil projected a reduction in upstream results by $800 million to $1.2 billion in Q4 due to falling oil prices, which may exacerbate its hesitance to invest in Venezuela and impact its overall market performance.
- Market Reaction Analysis: Despite Exxon's stock climbing 14.02% over the past year, its performance metrics reflect caution, with momentum and value rankings at the 49th and 82nd percentiles respectively, indicating mixed market sentiment regarding its future growth prospects.
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 177.50 USD with a low forecast of 158.00 USD and a high forecast of 204.00 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.
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 159.250
Low
158.00
Averages
177.50
High
204.00
Current: 159.250
Low
158.00
Averages
177.50
High
204.00
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.
