Chevron Corp

Chevron Corporation is currently trading at EV-to-2014E EBITDA of 5x, has an approximately $239 billion market cap, and ~$245 billion enterprise value.

The EIA estimates that US crude oil production fell by 40,000 barrels per day to 9.096 million barrels per day in the week ending September 25.

Chevron’s dividend payments have been increasing over the past several years. In the fourth quarter, Chevron paid a dividend of $1.12 per share.

This was the seventh straight weekly decline in the Permian Basin oil rig count. Overall, the weekly US crude oil rig count was down 4%.

The divergence between WTI and Brent narrowed last week, as a slowdown in Cushing offered a glimmer of hope, causing WTI to rise.

With large reductions in cash from operations and heavy burdens of fixed debt repayments, the ratio of debt servicing to operating cash flow rose in 2015.

In 2015, sinking oil prices impacted earnings of integrated energy companies. This reflects on the stock performance of these companies.

Out of 26 analysts currently covering Chevron, 17 have assigned “buy” or “strong buy” ratings.

In this part, we will discuss Dr. Plosser’s views on the use of systematic tools, for example, Taylor-like rules for setting policy rates and communicating these to markets.

No wonder integrated energy companies with gas projects in Asia and Australia are targeting the demand in the Asia-Pacific zone.

Petrobras (PBR) is expected to post its 3Q16 results on November 10, 2016. In 2Q16, it had adjusted EPS of $0.03 compared to analysts’ estimates of $0.12.

Royal Dutch Shell (RDS.A) plans to sell its oil fields in Iraq. The sale could be due to Shell’s restricted authority on the fields.

The merged entity would have 16 refineries with around 3 million barrels per day (or MMbpd) of capacity spread across the US.

Chevron (CVX) is currently trading at a forward EV-to-EBITDA of 6.8x, above the peer average of 5.5x.

Chevron’s valuation In the previous part, we discussed Chevron’s (CVX) historical valuation. In this part, we’ll compare Chevron’s forward valuation with peers’. Chevron (CVX) is now trading at a forward PE (price-to-earnings) ratio of 22.7x, above the peer average of 15.7x. ExxonMobil (XOM), PetroChina (PTR), and Petrobras (PBR) are also trading above the average. On […]

Chevron’s (CVX) earnings improved in 3Q16 compared to 3Q15. In fact, the upstream segment turned profitable in 3Q16.

Suncor Energy (SU) is the only losing stock in the current week from the integrated energy sector. It fell from last week’s close of $34.67 to $34.52 on October 11, 2017.

Global markets fell as Turkey shot down a Russian warplane near the Turkey-Syria border today. Turkish officials alleged that they repeatedly warned the jet to leave Turkish airspace.

The three US equity indices that we review in this weekly series fell from December 8 to December 15, 2015, after a rebound in oil prices.

Chevron (CVX) is the sixth stock on our list of the top eight dividend-yielding stocks.

The G20 finance ministers and central bank governors emphasized the role of fiscal policy in building confidence and supporting domestic demand.

In this part, we’ll discuss XOM’s cash flow from investing activities (or CFI). We say “from,” but items under this type of cash flow are usually negative.

On December 24, the US Energy Information Administration (or EIA) released its crude inventory report for the week ended December 19.

Comparing BP’s debt position with peers’ In this part, we’ll assess whether BP’s (BP) debt position has improved. Let’s begin by looking at how BP’s debt position compares with peers’. In the second quarter, BP’s total debt-to-capital ratio was 37%, higher than the industry average of 33%. The industry average considers 13 integrated energy companies worldwide. […]

According to BP’s guidance, its hydrocarbon production is expected to stay flat sequentially in the first quarter.

In this part, we’ll review whether BP’s (BP) debt position has improved. Let’s begin by comparing BP’s debt position with peers’.

Forward price-to-earnings ratio Previously, we discussed analysts’ views on RPM International (RPM). In this part, we’ll compare RPM’s forward PE (price-to-earnings) ratio with peers’. As of December 20, 2017, RPM’s one-year forward PE ratio stood at 17.5x, while peer PPG Industries (PPG) had a PE ratio of 17.6x. Forward PE ratios consider a company’s estimated EPS (earnings […]

Chevron (CVX) announced its third quarter earnings on October 30, 2015. Chevron saw new positions in 870 institutional investors’ portfolios in fiscal 2Q15.

Every week, the U.S. Energy Information Administration (or EIA) reports figures on crude inventories, or the amount of crude oil stored in facilities across the U.S.

In February 2015, Cheniere Energy announced that its 4Q14 and full-year results reported a net loss attributable to common stockholders of $158.6 million, or $0.70 per share.

Inflation in Japan, as measured by the consumer price index, rose just 0.2% in July from a year ago. The Bank of Japan has a target of 2% for inflation in Japan.

BP has the most “hold” ratings among the four stocks we’ve discussed in this series.

Institutional holdings in BP currently stand at ~10%, which has fallen ~1% in the past six months.

In 2015, Royal Dutch Shell’s stock fell. Shell’s stock lost 38% in the trailing twelve months to January 26, 2016.

In this series, we provided an update on Chevron’s latest financial and operational performance.

Chevron has cut spending on the Kitimat liquefied natural gas project (or LNG) in Canada due to falling crude prices.

On February 5, the DOE reported an increase in crude oil inventories of 0.44 million barrels—much lower than analysts’ expectations of a build of 2.27 million barrels.

Royal Dutch Shell (RDS.A) produced 3.8 MMboepd in 1Q17 from its worldwide operations, compared to 3.7 MMboepd in 1Q16.

ExxonMobil (XOM) produced 3.7 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in the second quarter.

BP has a strong pipeline of projects in its upstream portfolio. These projects are expected to result in 800,000 barrels per day of new production by 2020.

ExxonMobil, Chevron, and Occidental Petroleum were trading at an average of 0.6% below their respective 100-day moving averages.

Shares of USO trade on the NYSE like company stock. The fund lost ~5.3% in the week ended July 2.

A large portion of ExxonMobil’s earnings come from “non-operating” sources. This reflects the sheer scope of the company’s operations.

We’ll take a look at recent recommendations that brokers have provided for Cheniere Energy Partners (CQP) ahead of its 2Q15 earnings release on July 29.

An important part of Tesoro’s business, crude-by-rail allows refiners to cover maximum accessibility and to gain from price differentials.

Oil rig counts decreased last week, down ~4% since June Last week, the Baker Hughes oil rig count decreased from 1,367 to 1,361. Oil rig counts have been on a slight downward trend since mid-year. Rigs drilling for oil peaked this year in June, at 1,413, but have since fallen about 4%. Though the drop […]

Implied volatility in Royal Dutch Shell (RDS.A) has fallen 4.9% since July 3, 2017, to the current level of 12.8%.

Chevron (CVX) produced 2.7 MMboepd (million barrels of oil equivalent per day) from its worldwide operations in 1Q17.

In its weekly report on June 3, the EIA reported that US crude oil refinery inputs averaged ~16.4 MMbpd during the week ending May 29.

On December 31, natural gas February futures fell 11% and settled at $2.94 per million British thermal units.

In 2Q16, ExxonMobil (XOM), Chevron (CVX), and Royal Dutch Shell (RDS.A) traded at EV-to-EBITDA multiples above their historical averages.

The short interest in Chevron (CVX) has been very volatile in the second quarter. While the short interest in the stock rose from 0.90% on April 1 to 1.49% on April 30, it has fallen to 0.86%.

Total petroleum production increased by 4% in fiscal year 2014 (or FY14). However, the highlight was the increase in liquids production. It was supported by a 73% increase in Onshore U.S. liquid volumes and nearly doubled production at Atlantis. This is important to note because liquid volumes are more profitable.

The US energy sector was badly affected by the recent market sell-off in February 2018.

Out of the current 1,575 oil rigs at work, the majority—roughly 552—are in the Permian Basin. The Eagle Ford has 196 rigs, the Williston and Bakken have 192 rigs, and the Mississippian has 79 rigs.

Rising refinery utilization and declining US output will support crude oil prices. This is positive for crude oil prices.

SWN’s actually done a great job operationally. It’s grown its production and kept costs down to ensure steady margins. This means that if natural gas prices start rising, the gains would drop straight into the company’s net earnings.

The EIA (U.S. Energy Information Administration) published that the US crude oil output rose by 48,000 bpd to 9.2 MMbpd for the week ending October 30, 2015.

The SPDR S&P 500 ETF (SPY) fell ~0.5% to $268.8 on April 19, 2018. SPY targets to follow the S&P 500 Index’s performance.

In this series, we’ll look at Chevron’s (CVX) current financial position and growth prospects.

Things were going pretty well for Mexico until 2004 when its oil production started declining. The decline was as a result of Cantarell’s—Mexico’s largest oilfield— depleting reserves.

Institutional holdings in integrated energy stocks like ExxonMobil (XOM), Royal Dutch Shell (RDS.A), BP (BP), and Chevron (CVX) have varied from 13% to 63%.

Royal Dutch Shell (RDS.A) reported its Q2 2018 earnings on July 26. The company’s earnings missed estimates.

Integrated energy companies such as ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) are steady dividend-paying companies.

Chevron’s (CVX) Upstream segment, which posted a loss in 1Q16, saw its earnings rise to ~$1.5 billion in 1Q17.

Growing conflict in the Middle East between Saudi Arabia and Iran, the major oil-producing countries of OPEC, has become a threat for crude oil prices.

Approximately 35% of Wall Street analysts tracking ExxonMobil (XOM) rate it a “buy.” Approximately 10% of the analysts recommend a “sell.”

The RBI had headroom to make a further rate reduction in August, but then the bank resisted, citing the rise in core inflation.

In terms of its dividend yield, Chevron (CVX) is the fifth-best performer among the six stocks under review.

According to the Bureau of Labor Statistics, US import prices fell 1.2% month-over-month in December as compared to a 0.5% decline in November 2015.

Cushing, Oklahoma WTI prices fell to $41.93 a barrel on August 17—the lowest since early March 2009. Iran flooding the market with its oil is one of the reasons for this fall.

Considering Shell’s implied volatility of 21.0%, Shell stock could close between $63.7 and $59.8 per share in the next eight days.

NYMEX-traded WTI crude oil futures contracts for September delivery fell by 2.47% and settled at $42.23 per barrel on Thursday, August 13, 2015.

January WTI crude oil futures fell for the third straight day yesterday. Prices fell below the key psychological levels of $42 per barrel on November 30.

Chevron’s overall adjusted earnings rose from $1.6 billion in the third quarter of 2017 to $4.7 billion in the third quarter of 2018.

Rig counts in the Permian Basin can gauge drilling activities for upstream companies. The Permian Basin rig count is now at its lowest since May 2011.

In the first quarter, BP’s (BP) cash flow from operations rose 72% YoY (year-over-year) to $3.7 billion, and its cash outflow from investing was flat YoY at $3.8 billion.

Institutional holdings show the percentage of a company’s shares owned by institutions like mutual funds and banks.

Early last week, WTI crude oil had eased to close to $99 following Libya’s restarting exports from major ports and abating fears over supply disruptions in Iraq.

In this part, we’ll look at ExxonMobil’s (XOM) profitability at various levels and its returns in different contexts.

Chevron (CVX) is the seventh top dividend-yielding stock on our list of the top eight integrated energy stocks.

Noble Energy (NBL) will report its 2Q17 earnings on August 3, 2017. The company’s revenue estimates for 2Q17 stand at $1.06 billion.

Companies in the E&P or upstream industry in the XLE portfolio include Anadarko (APC) and Pioneer Natural Resources (PXD).

The EIA estimates that global crude oil supply outages rose by 209,000 bpd to 1.9 MMbpd in August 2017—compared to July 2017.

Let’s examine CVX’s valuation trend. CVX traded at an average PE of 11.7x from 1Q13 to 3Q15. The PE measures a company’s price per share as a multiple of EPS.

While retail investors don’t have easy access to the futures market, they can benefit from access to safer, low-cost avenues such as energy ETFs to bet on WTI crude prices.

Let’s see which energy company stands out as the most efficient in reducing debt loads and improving leverage ratios and which ones are laggards.

CVR Refining’s implied volatility rose 2.1% on January 23, 2017. The stock rose 1.8%. Goldman Sach increased its target price on the stock to $12 from $7.

Oil traded flat on the latest inventories data, with a large build in crude oil stocks but declines in gasoline and distillate stocks.

The Gulf of Mexico rig count was down by 11 rigs compared to the previous week, with 35 rigs for the week ending March 20, 2015.

The EIA expects 2015 production to touch 9.3 MMbbls/d—despite the low prices. In 2014, production averaged 8.6 MMbbls/d, according to the EIA’s estimates.

Plunging crude prices may cause crude production to decline.The EIA has scaled down its 2015 production growth forecast from 900,000 to 700,000 barrels.

Chevron announced its 4Q15 results on January 29, before the market opened. As Chevron missed its estimates for 4Q15, the stock received a weak opening.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Halliburton Company (HAL) issued A2/A rated high-grade bonds worth $7.5 billion in November.

So far in 1Q18, Chevron (CVX) stock fell 13.9%, the highest among its peers ExxonMobil (XOM), BP (BP), and Royal Dutch Shell (RDS.A).

Lower crude oil prices are the primary reason behind falling oil rig counts. Leading energy companies have reduced their 2015 capital expenditure targets.

Currently, BP trades at a forward PE ratio of 10.7x, which is above its peer average of 10.6x.

Last week, AstraZeneca issued A2/A rated high-grade bonds worth $6.0 billion to fund the acquisition of ZS Pharma (ZSPH).