Key Stats for Chevron Stock
- Price change for Chevron stock in the last 6 months: 22%
- $CVX Stock Price as of Oct. 21: $227
- 52-Week High: $228
- $CVX Stock Price Target: $231
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What Happened?
Chevron (CVX) is exploring the sale of some older oil and gas assets in the U.S. Gulf, the company confirmed to Reuters on Wednesday.
For anyone following Chevron stock, this is a portfolio move aimed at newer, faster-growing projects.
A spokesperson said the company is starting a multi-month process and the assets include Petronius, Tubular Bells and Llano.
Chevron also plans to market working interests in several other fields, and the company said there is no guarantee that any sales will happen.
Chevron wants U.S. Gulf production to reach 300,000 barrels of oil equivalent per day by the end of this year.
The focus is on newer projects like Anchor, its first platform producing at ultra-high subsea pressure. Ballymore began producing last year.
Chevron is also looking for oil and gas near existing facilities and has been a top spender in recent U.S. Gulf drilling rights sales.
The timing looks good. Buyer interest in American energy production is high. Oil prices are elevated, and U.S. crude hit a six-month high on Tuesday.
Two people aware of the effort said the sales could bring in about $1 billion. Interested buyers may include international offshore operators, U.S. companies and other energy majors.
Some of the assets came from the Hess deal. Chevron owns 100% of Tubular Bells and has a 50% stake in Llano.
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What the Market Is Telling Us About Chevron Stock
Chevron stock already has a strong base.
Q2 adjusted earnings were $12 billion and cash flow from operations, excluding working capital, was nearly $20 billion.
Chevron cut debt by more than $8 billion in the quarter, and CEO Mike Wirth said the company wants to put capital where returns are best.
Costs are under control too as Chevron hit its $3 billion structural cost savings target six months early.
It also expects to finish 2026 at the low end of its $18 billion to $19 billion capital budget.
So Chevron stock is backed by strong cash flow and a cleaner portfolio.
The real question for Chevron stock is whether the newer Gulf projects deliver the growth the company is targeting.
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So what is Chevron stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
