Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF), having now banked $12.5 million from its deal with Chevron, trades at only a small premium to its cash – leaving very little of its exploration potential priced in. Now, it's not unusual for AIM to undervalue potential, especially not of late.
If you're as bullish on oil as I am, let's look past vanilla bean favorites like Exxon Mobil (XOM) and Chevron (CVX). Great companies but a bit pricey, as they only yield 3% to 4%.
I rate Chevron stock a hold due to its strong dividend yield, but limited price appreciation potential and upcoming earnings risks. CVX is an integrated energy company with a diversified global presence, leveraging both upstream and downstream operations. Despite recent underperformance, CVX's strong cash flow, low debt, and commitment to dividends make it a long-term portfolio candidate.
Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) told investors it has now banked a $12.5 million payment from Chevron thanks to the successful completion of the farm-out of a 60% interest in its AREA OFF-1 block, located offshore Uruguay. Chevron becomes the operator of the project, and takes up a 60% stake in the exploration area.
These investments can produce a lot of passive dividend income.
Oil stocks fell Monday after Israel's strike on Iran avoided the country's oil facilities.
In the volatile energy sector, this high-yield and diversified oil giant is probably the best option for most investors.
Chevron (CVX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
It's smart to seek dividend-paying stocks that offer income and solid growth potential, too.
Chevron Chairman and CEO Mike Wirth joins 'Mad Money' host Jim Cramer to talk Chevron's newest off shore oil platform.
Chevron Chairman and CEO Mike Wirth joins 'Mad Money' host Jim Cramer to talk Chevron's newest off shore oil platform.
Chevron Chairman and CEO Mike Wirth joins 'Mad Money' host Jim Cramer to talk Chevron's newest off shore oil platform.