CVX Stock – What Investors Should Know About Chevron Corp
Chevron Corp. (CVX stock) provides administrative, financial management, logistics, and technology support for energy and chemical operations through upstream and downstream business segments. Chevron Corporation manages its investments directly, and through subsidiaries and affiliates. Moreover, the company provides administrative, financial, management, and technological support to US and international subsidiaries engaged in integrated energy and chemicals operations. The company was founded in 1906 and is headquartered in San Ramon, CA.
Chevron is a globally integrated energy company with operations in exploration, production, and refining. It is the United States’ second-largest oil company, producing 3.2 million barrels of oil equivalent per day. This includes 7.6 million cubic feet of natural gas and 2.0 million barrels of liquids per day. North America, South America, Europe, Africa, Asia, and Australia all have manufacturing operations. The company has refineries in the United States, South Africa, and Asia, and its total refining capacity exceeds 3 million barrels of oil per day. At the end of 2021, Chevron reported proven reserves totaling 12.4 billion barrels of oil equivalent. This includes 6.5 billion barrels of liquids and 29.5 trillion cubic feet of natural gas. The company operates in two segments:
- Upstream – Exploration, development, and production of crude oil and natural gas. Next, processing, liquefaction, transportation, and regasification of liquefied natural gas. Finally, transporting crude oil via international oil export pipelines as well as the transportation, storage, and marketing of natural gas and gas-to-liquids products.
- Downstream – This segment primarily consists of refining crude oil into petroleum products. Also, marketing crude oil, refined products, and lubricants, and producing and marketing renewable fuels. Crude oil and refined products are transported by pipeline, marine vessel, motor equipment, and rail car, and producing and marketing commodity petrochemicals. For example, commodity petrochemicals and plastics for industrial uses and fuel & lubricant additives.
More About CVX Stock and Chevron Corp.
Chevron is one of the world’s largest publicly traded oil and gas companies, with operations on nearly every continent. Chevron is the only energy component of the Dow Jones Industrial Average. The company is fully integrated, which means it is involved in every aspect of energy, from oil production to refining and marketing. The company generates approximately $95 billion in annual revenue and produces more than three million barrels of oil equivalent per day. Chevron currently produces 59 percent oil and 41 percent natural gas. The company had proven reserves of approximately 12.4 billion barrels of oil equivalent as of the end of 2021.
Chevron is an integrated company involved in all aspects of the oil and gas industry. The company is frequently caught in the crossfire of political debates over climate change policy. Despite these distractions, Chevron has increased its cash from operations, allowing management to raise the dividend on a regular basis. The energy giant’s balance sheet is reasonably healthy, indicating that the dividend should remain safe in the future. It is one of only two energy stocks on the list of Dividend Aristocrats.
Chevron has a market capitalization of around $285 billion and divides its operations into two major segments. These are upstream (exploration and production) and downstream (refining and distribution) (refining). In 2021, the Upstream division earned $15.8 billion, while the Downstream segment earned $2.9 billion. Transportation (pipelines, shipping) and chemicals (managed by Chevron Phillips Chemicals Company, a 50/50 joint venture with partner Phillips 66) are two of Chevron’s other businesses. Moreover, Chevron’s current oil and gas development project pipeline is one of the best in the industry. In fact, output is expected to increase by 13% from 2021 levels by 2026. This production increase will primarily come from Chevron’s Permian Basin assets.
CVX Stock: Annual Reports – Financials – SEC Filings
Chevron Corp is incorporated in the state of Delaware. Chevron Corp is primarily in the business of petroleum refining. For financial reporting, their fiscal year ends on December 31st. This page includes all SEC registration details as well as a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Chevron Corp.
Chevron is a globally integrated energy company with operations in exploration, production, and refining. Chevron is the United States’ second-largest oil company, producing 3.2 million barrels of oil equivalent per day. In addition, the company produces 7.6 million cubic feet of natural gas and 2.0 million barrels of liquids per day. North America, South America, Europe, Africa, Asia, and Australia all have Chevron manufacturing operations. The company has refineries in the United States, South Africa, and Asia. In 2019, its total refining capacity was 1.7 million barrels of oil per day. At the end of 2019, proven reserves totaled 11.4 billion barrels of oil equivalent. In addition, the company reported 6.5 billion barrels of liquids and 29.5 trillion cubic feet of natural gas.
CVX Stock Dividend
Chevron has consistently paid a dividend, increasing it numerous times over the last 35 years. As a result, the company ranks as a Dividend Aristocrat. Dividend aristocrats are companies that have increased annual dividend payments for at least 25 years in a row. These companies demonstrate an unrivaled long-term stability. There is no guarantee that a future disaster will not result in a dividend cut (as is true for any stock). However, Chevron is about as safe as an investor can hope for in terms of income-generating stocks.
Upcoming dividend of US$1.42 per share
Eligible shareholders must have bought the stock before 17 November 2022.
- Payment date: 12 December 2022.
- The payout ratio is a comfortable 32% and this is well supported by cash flows.
- Trailing yield: 3.2%.
- Lower than the top quartile of American dividend payers (4.4%).
- Lower than average of industry peers (4.0%).
CVX Stock Forecast
Chevron’s stock price has risen significantly since the energy sector’s recovery from pandemic-induced lows. Moreover, Chevron is now the 16th largest company in the S&P 500 Index. In general, the company is well-positioned to navigate the volatility in oil and gas prices. This is due to its relatively low-risk energy business structure, strong financial health, and ample free cash flows.
- The 24 analysts offering 12-month price forecasts for Chevron Corp have a median target of 194.00, with a high estimate of 215.00 and a low estimate of 143.00. The median estimate represents a +4.37% increase from the last price of 185.88. (Source: money.cnn.com)
- Based on 11 Wall Street analysts offering 12-month price targets for Chevron in the last 3 months. The average price target is $188.27 with a high forecast of $215.00 and a low forecast of $143.00. The average price target represents a 1.28% change from the last price of $185.89. (Source: tipranks.com)
- Based on short-term price targets offered by 17 analysts, the average price target for Chevron comes to $182.71. The forecasts range from a low of $143.00 to a high of $215.00. The average price target represents an increase of 0.81% from the last closing price of $181.24. (Source: zachs.com)
Is CVX Stock a Buy?
- Chevron Corporation is currently rated by Zacks.com as a Rank 3 company. Zachs anticipate an inline return from CVX shares relative to the market in the coming months. Furthermore, Chevron Corporation has a VGM Score of A. which is a weighted average of the individual Style Scores. Chevron Corporation may be undervalued, according to valuation metrics. Its Value Score of B suggests that it is a good choice for value investors. CVX’s financial health and growth prospects show that it has the potential to outperform the market. It currently has an A Growth Score. Recent price changes and earnings estimate revisions indicate that this stock lacks momentum and is a poor choice for momentum investors. (Source: zachs.com)
- According to Investors.com, Chevron stock should not be purchased at this time. Investors should wait until the stock is above the appropriate buy point. Once the market outlook has returned to an uptrend and the stock has reclaimed its 50-day moving average, When it reaches the 5% buy zone, it may be considered a buy. (Source: investors.com)
- There are mixed signals in the stock. A sell signal was issued from a pivot top point on Tuesday, November 15, 2022. So far, it has fallen -0.94%. Furthermore, there is currently a sell signal from the 3-month Moving Average Convergence Divergence (MACD). However, CVX stock holds buy signals from both short and long-term moving averages. Overall, this results in a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $184.77 and $174.58. A breakdown below any of these levels will issue sell signals. The stock should be watched closely. (Source: stockinvest.us)
CVX Stock News
Insider exercised options and sold US$1.6m worth of stock (November 2022)
On the 1st of November, James Johnson exercised 29k options at a strike price of around US$125 and sold these shares for an average price of US$182 per share. This trade did not impact his existing holdings.
- Since December 2021, James’ direct individual holding has increased from 18.19k shares to 18.28k.
- Company insiders have collectively sold US$127m more than they bought, via options and on-market transactions in the last 12 months.
Chairman & CEO announces intention to sell stock (November 2022)
Michael Wirth intends to sell 35k shares in the next 90 days after lodging an Intent To Sell Form on the 7th of November. If the sale is conducted around the recent share price of US$185, it would amount to US$6.4m.
- For the year to December 2015, Michael’s total compensation was 7% salary and 93% other compensation.
- This indicates that these sales could comprise a meaningful part of their income for the year.
- Since December 2021, Michael’s direct individual holding has increased from 33.72k shares to 507.16k.
- Company insiders have collectively sold US$137m more than they bought, via options and on-market transactions in the last 12 months.
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