We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chevron (CVX) Affiliates to Divest Geothermal Operations
Read MoreHide Full Article
U.S.energy behemoth Chevron Corporation (CVX - Free Report) recently reported that its wholly-owned affiliates have signed an agreement to divest its Indonesian and Philippines Geothermal assets to Star Energy Consortium.
Chevron, which first began its geothermal operations in the 1960s, has a 40% interest in the Philippine Geothermal Production Company. This company operates the Tiwi and Mak-Ban geothermal power plants in Southern Luzon, which provide steam to power plants and are capable of generating 692 megawatts of power. The Darajat and Salak fields in Indonesia, which were discovered by Chevron in the 1980s, have a combined operating capacity of 647 megawatts.
Chevron’s has planned this divestment to improve its financial situation. The company has already sold assets worth $2.2 billion as of the end of the third quarter and is on track to attain its goal of maximizing the value of its upstream businesses by managing its portfolio effectively.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas firms in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 14.41%. However, the Chevron stock has outperformed the industry by gaining 27.21%.
This is because Chevron – one of the most oil-weighted majors – is poised to benefit from the recent OPEC deal and the subsequent improvement of crude prices. As it is, the company has been able to boost returns and remain competitive by taking up aggressive cost-reduction initiatives. However, Chevron is experiencing signs of weakness in the refining business due to fuel oversupply amid weak demand.
As a result, Chevron currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Suncor, on the other hand, delivered an average positive earnings surprise of 40.55% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Chevron (CVX) Affiliates to Divest Geothermal Operations
U.S.energy behemoth Chevron Corporation (CVX - Free Report) recently reported that its wholly-owned affiliates have signed an agreement to divest its Indonesian and Philippines Geothermal assets to Star Energy Consortium.
Chevron, which first began its geothermal operations in the 1960s, has a 40% interest in the Philippine Geothermal Production Company. This company operates the Tiwi and Mak-Ban geothermal power plants in Southern Luzon, which provide steam to power plants and are capable of generating 692 megawatts of power. The Darajat and Salak fields in Indonesia, which were discovered by Chevron in the 1980s, have a combined operating capacity of 647 megawatts.
Chevron’s has planned this divestment to improve its financial situation. The company has already sold assets worth $2.2 billion as of the end of the third quarter and is on track to attain its goal of maximizing the value of its upstream businesses by managing its portfolio effectively.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas firms in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 14.41%. However, the Chevron stock has outperformed the industry by gaining 27.21%.
This is because Chevron – one of the most oil-weighted majors – is poised to benefit from the recent OPEC deal and the subsequent improvement of crude prices. As it is, the company has been able to boost returns and remain competitive by taking up aggressive cost-reduction initiatives. However, Chevron is experiencing signs of weakness in the refining business due to fuel oversupply amid weak demand.
As a result, Chevron currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Suncor Energy (SU - Free Report) and McDermott International Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Suncor, on the other hand, delivered an average positive earnings surprise of 40.55% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>