Chevron CorpCVX

Morningstar Rating

Stock Research and Analysis

by Allen Good

Like its fellow supermajor integrated peers, Chevron is finding it increasingly difficult to expand production and add reserves in a world with a shrinking investable resource base. Much of the remaining pools of cheap, easily accessible resources large Read more

Bulls Say

Investments in LNG projects around the world will allow the company to better exploit stranded resources.

Growth is expected to rise post-2014 and should lead all majors while maintaining peer leading liquids exposure.

Chevron's past exploration success should lead to reserves and production in the near future.

Chevron expects operating cash flow to rise to $50 billion in 2017 at current commodity prices from $40 billion in 2012. Read more

Bears Say

Chevron may find it increasingly difficult to boost production and book reserves as nations become more protective of their natural resources and are potentially averse to working with foreign energy companies.

Cost inflation and currency appreciation plagued Chevron's Gorgon LNG development in Australia, damaging returns.

Ongoing legal action related to Chevron's now-ceased Ecuadorian operations could result in a significant monetary judgment against the company. The case is likely to drag on for years, prolonging the uncertainty.

Chevron is highly invested in the Gulf of Mexico. Delays in obtaining future drilling permits or regulatory changes that require additional equipment or testing could increase costs. Read more

Management

John Watson assumed the CEO and chairman position in 2010 after serving as vice chairman. He joined Chevron in 1980 and has held several different senior management roles, including president of international exploration and production and CFO. We like Read more

Profile

Chevron is an integrated energy company with exploration, production, and refining operations worldwide. With production of 2.6 million of barrels of oil equivalent a day Read more