A former top Chevron executive, Ali Moshiri, is raising $2 billion for Venezuelan oil projects after the U.S. captured its leader Nicolas Maduro and President Donald Trump said Washington would take control of the oil-producing nation, the Financial Times reported on Monday.
Chevron stock has risen a paltry 6% in the last year, according to Google Finance – a far cry from the S&P 500's 16.4% rise.
Secretary of State Marco Rubio said the U.S. will use leverage to achieve its policy aims in Venezuela. It comes one day after the U.S. captured Venezuelan President Nicolas Maduro.
Trump announces plans for U.S. energy companies to return to Venezuela and rebuild its oil infrastructure, targeting the world's largest oil reserves.
Chevron is uniquely positioned as the only major oil company operating in Venezuela. CVX's deep familiarity with Venezuelan assets gives it a strategic head start if the U.S. revives Venezuelan oil production. While CVX trades at a P/E of ~21, current oil prices are weak; cyclical valuation should be assessed over the business cycle.
The country says its proved oil reserves top 300 billion barrels which, if true, would make its bounty the world's largest.
CVX starts production at Angola's South N'dola field, using existing infrastructure to boost output, jobs and support oil and LNG growth.
CVX's unit locks in a long-term crude supply from Frontera Energy through a deal worth up to $120 million, starting with an $80 million prepayment.
Frontera Energy's Colombian unit has signed a prepayment and commercial agreement worth up to $120 million with a unit of U.S. oil major Chevron to supply crude oil over two years, the Canadian oil producer said on Monday.
Chevron (CVX) is expected to extend its dividend growth streak to 39 years, but with a muted 3–4% increase amid lower oil prices. CVX's earnings remain under pressure from declining oil prices despite cost-saving initiatives and the Hess acquisition, leading to subdued dividend growth. Dividend increases in January will generally be modest, with select companies like Fastenal, S&P Global, and Cincinnati Financial likely to deliver higher single-digit boosts.
Japan's top oil refiner Eneos is leading rival bidders for Chevron's stake in a Singapore refinery, with a deal nearing completion, though potential delays remain, Bloomberg News reported on Wednesday, citing people familiar with the matter.
In the latest trading session, Chevron (CVX) closed at $149.8, marking a +1.39% move from the previous day.