Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Integrated energy behemoth, Chevron Corp. (CVX - Analyst Report), pulled the plug on the Lithuania tender to explore shale gas in the western part of the country. The company cited changes in law as the reason for this move.

The San Ramon, California-based company was the sole bidder to explore the 1,800 square kilometers Silute-Taurage area for unconventional hydrocarbons and had won the bid last month. Lithuania estimates that the prospect could hold as much as 80 billion cubic meters of technically recoverable shale gas.

Chevron believes that the fiscal, regulatory and legislative changes that took place after it placed the bid in Jan 2013 made the venture less fruitful. Moreover, several other legislative acts have been passed after the company won the bid last month and many more are under discussion. This makes it difficult to identify the true potential of the prospect.

Chevron’s move to back out from the project could prove costly for Lithuania as the Baltic state receives its full requirement of gas from Russia and had earlier stated that it was being overcharged by the Russian gas behemoth Gazprom. Choosing Chevron for the tender was a move by the government to reduce this dependence on Russia.

However, Chevron has not withdrawn completely from Lithuania. It plans to continue its exploration activities in the 2,400 square kilometer Rietavas block that it currently holds.

Chevron is one of the largest publicly traded oil and gas companies in the world and is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.

Chevron currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, there are certain other companies in the energy sector that are expected to perform better in the short term. These include Zacks Ranked #1 (Strong Buy) Dril-Quip, Inc. (DRQ - Analyst Report), Stone Energy Corp. (SGY - Analyst Report) and Pembina Pipeline Corporation (PBA - Snapshot Report).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%