#1 - Chevron (NYSE:CVX)
Chevron Corp. (NYSE: CVX) is one of the big oil stocks that stands to benefit from what will be a favorable time for oil companies. The company’s merger with Hess Corp. (NYSE: HES) has been conditionally approved. Although the deal won’t close until late 2025 due to arbitration proceedings regarding some of Hess’ Guyana assets that are shared with Exxon Mobil Corp. (NYSE: XOM), it still looks like a go.
Despite the fact the United States is the world’s leading oil producer and is producing more oil than ever before, “Drill baby, drill” was still a key issue in the recent presidential campaign. The primary benefit for oil production will likely come from an accelerated process to approve permits. To be fair, this began in the Biden administration but came with some regulatory hurdles that are likely to be removed.
Where oil stocks are more likely to benefit is increased demand from economic growth at both the producer and consumer levels. And in this case, size and quality matter. Chevron has many quality assets, and it has a cash-rich balance sheet. CVX stock has lagged the market, but at 14x forward earnings and with a safe, growing dividend that currently yields 4.14%, Chevron offers investors significant upside.
About Chevron
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant.
Read More - Current Price
- $142.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $175.19 (22.6% Upside)
