Chevron Corporation (CVX)
Where Will Chevron Be in 1 Year?
Chevron and Exxon are two U.S.-based, globally diversified, integrated energy giants. However, Chevron's stock has lagged behind that of Exxon so far in 2024.
Chevron (CVX), Rhino Prepare for Offshore Drilling in Namibia
Chevron (CVX) and Rhino Resources plan offshore Namibia drilling by late 2024 or early 2025, sparking interest in the hydrocarbon-rich Orange Basin.
Permian Break-Even Costs Low: 3 Energy Stocks to Gain
It would be wise for investors to monitor three prominent energy companies operating in the Permian, like ExxonMobil (XOM), Chevron (CVX) and Diamondback (FANG).
3 Value Stocks to Buy at a 52-Week Low in May
The stock market rally rolls on. After a brief downturn in April, the benchmark S&P 500 index is back at an all-time high in May.
Chevron-Hess Deal Vote Is Looking Like a ‘Coin Toss'
Chevron hopes to buy Hess for $53 billion. But the status of the deal looks shakier than ever,
3 Dividend Stocks to Buy Now: May 2024
When investors think about dividends, their first instinct might be passive income. Of course, owning enough dividend-yielding shares could lead to quarterly payouts which one could theoretically live off of.
2 High-Yield Energy Stocks to Buy Hand Over Fist and 1 to Avoid
Devon Energy has a variable dividend policy that probably won't be appropriate for most income investors. Enbridge has an ultrahigh yield and years of annual dividend increases behind it.
Bull Signal Flashing for Oil & Gas Stock
The shares of oil and gas stock Chevron Corp (NYSE:CVX) still sport a fractional year-over-year lead, despite pulling back over the last two weeks.
3 Permian Explorers Poised to Gain as Oil Prices Stay High
Improving Permian production amid healthy oil prices raises the incentive to keep an eye on companies like ExxonMobil (XOM), Chevron (CVX) and Diamondback Energy (FANG).
Chevron's (CVX) Tengiz Project Faces Cost Increase of $1.5B
Chevron Corporation's (CVX Quick QuoteCVX - Free Report) ambitious Tengiz oil field project in Kazakhstan has recently encountered a significant setback. The expansion initiative, formally known as the Future Growth Project – Wellhead Pressure Management Project, is aimed at augmenting the total daily production from the Tengiz reservoir. However, unforeseen challenges have arisen, leading to a projected additional cost increase of $1.5 billion. This escalation could potentially elevate the total project cost to approximately $48.5 billion, marking a substantial deviation from the initial budget.Project Budget and Progress UpdateIn October 2023, Chevron disclosed in its third-quarter earnings report that the Tengiz project budget was undergoing a revision due to slower-than-anticipated progress toward start-up. Initially budgeted at $45.2 billion, the project had already factored in a contingency of $1.9 billion in July 2021, acknowledging the potential disruptions caused by the COVID-19 pandemic. However, the recent announcement indicates a further spending escalation, highlighting the complex challenges inherent in large-scale energy projects. Chevron, despite acknowledging the budgetary adjustments, has emphasized that its guidance for the total cost of the Tengiz expansion project remains unchanged from the ranges provided in previous earnings calls. This assertion, which cites a cost increase of 3-5%, highlights the company's commitment to managing costs amid evolving circumstances.Project History and Ownership StructureThe Tengiz expansion project has experienced several delays, with the completion date being postponed twice from the initial mid-2022 target. The project is a joint venture, with CVX holding a 50% stake in Tengizchevroil, the entity responsible for operating the Tengiz Field. Exxon Mobil Corporation (XOM Quick QuoteXOM - Free Report) and KazMunayGas, the state-owned national oil and gas company of Kazakhstan, hold a 25% and 20% stake in the venture, respectively. This collaborative ownership structure reflects the project's multinational nature as well as the strategic alliances to facilitate its implementation.Implications and Future OutlookThe projected cost increase of $1.5 billion for the Tengiz oil field project highlights the inherent complexities and uncertainties associated with large-scale energy initiatives. While CVX remains committed to completing the project within the specified parameters, the additional costs necessitate a thorough reassessment of financial projections and risk management strategies.In the broader context, the challenges facing the Tengiz project serve as a reminder of the dynamic nature of the energy sector and the importance of adaptive management practices. As the global energy landscape continues to evolve, companies must navigate a myriad of geopolitical, economic and operational factors to ensure the successful execution of strategic initiatives.ConclusionChevron's Tengiz oil field project in Kazakhstan is facing a significant cost increase of $1.5 billion, potentially pushing the total project cost to approximately $48.5 billion. Despite the challenges posed by slower-than-anticipated progress and escalating costs, Chevron remains committed to completing the project within the stipulated parameters. The collaborative ownership structure and strategic partnerships underpinning the project highlight its significance within the broader energy landscape. As the project progresses, careful monitoring and adaptive management will be essential to mitigate risks and ensure successful outcomes in line with stakeholders' expectations.Zacks Rank and Key PicksCurrently, CVX and XOM carry a Zacks Rank #3 (Hold) each.Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. (AROC Quick QuoteAROC - Free Report) and SM Energy Company (SM Quick QuoteSM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. Archrock is valued at $3.22 billion. The company currently pays a dividend of 66 cents per share, or 3.30%, on an annual basis.AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.Denver, CO-based SM Energy is valued at $5.63 billion. The company currently pays a dividend of 72 cents per share, or 1.47%, on an annual basis.SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>
Readers Identify 23 Ideal April Dividend Buys
Prior to April 30, 2024, my Readers mentioned 31 equities in their comments on my articles. Some bad-news investments (Rogues) mixed with (mostly) Favorites. Thus, they remarked about the ReFa/Ro. Ten analyst-target-estimated top net gain ReFa/Ro: ORC, JNJ, CVX, FTN.CA, OXLC, ACRE, MED, RC, INTC, and VFC averaged 22.94% net gains from reader data collected 5/15/23. Ten analyst-target-augured April top price upside reader faves & rogues (ReFa/Ro) were: ORI, O, KVUE, PFE, WES, CVX, JNJ, RC, INTC & VFC boasting a 16.43% average target price upside estimate.
Want Decades of Passive Income? 2 Stocks to Buy Now and Hold Forever
The energy sector is known for being volatile. Energy giants ExxonMobil and Chevron have both managed to increase their dividends annually for decades.
