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Chevron (CVX) to Sell Bangladeshi Assets to Chinese Company
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U.S. energy giant Chevron Corporation (CVX - Free Report) recently entered into an agreement to sell its three Bangladeshi gas fields to a Chinese consortium through its wholly-owned subsidiary, Chevron Global Ventures, Ltd.
The company is preparing to sell stakes in the Bangladeshi assets to Himalaya Energy Co. Ltd. Investors should know that Himalaya Energy is owned by Chinese state-backed oil explorer, China ZhenHua Oil, and a Hong Kong investment company, CNIC Corporation. CNIC mainly focuses on financing overseas investment by Chinese companies. The deal is yet to receive approval from the Ministry of Commerce of China.
The value of the transaction and other details of the agreement are yet to be disclosed by Chevron Corp.
The government of Bangladesh has the privilege of the first refusal in case of any asset sale in the country. The government is assessing whether it would be profitable for the country to make a bid for the oilfields.
The gas fields of Chevron Bangladesh produce more than 50% of the total gas production in the country. The gas fields are responsible for the production of 720 million cubic feet of gas and 3,000 barrels of condensate or liquid hydrocarbon produced with gas on an average per day. The production-sharing contract signed by Chevron helps it to sell its entire production from the fields in Bibiyana, Jalalabad and Moulavi Bazar to the state oil company, Petrobangla.
This asset sale in Bangladesh is part of Chevron’s decision to divest $10 billion worth of assets in Asia by 2017 to counter the extended slowdown in energy prices.
About the Company
Chevron is one of the largest integrated energy companies in the world. The company has operations in approximately 180 countries and is engaged in every aspect of the oil and natural gas industry, including exploration and production, refining, marketing and transportation, chemicals manufacturing and sales, and power generation. Chevron is headquartered in San Ramon, CA.
Price Performance
In the last six months, Chevron’s shares outperformed the Zacks categorized Oil and Gas - International - Integrated industry. The company’s shares gained 5.13%, whereas the industry recorded a decrease of 1.05%.
Zacks Rank and Stocks to Consider
Chevron presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Enerplus Corporation (ERF - Free Report) , Antero Resources Corporation (AR - Free Report) , and Bellatrix Exploration Ltd. . All these companies sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Enerplus Corporation is expected to witness sales growth of 66.12% year over year in 2017. The company had an average positive earnings surprise of 66.67% in the last four quarters.
Antero Resources is expected to record 8.88% year-over-year growth in 2017 sales. The company had an average positive earnings surprise of 239.10% in the last four quarters.
Bellatrix’s year-over-year sales for the current quarter are expected to rise by 20.13%. The company had an average positive earnings surprise of 58.54% in the last four quarters.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Chevron (CVX) to Sell Bangladeshi Assets to Chinese Company
U.S. energy giant Chevron Corporation (CVX - Free Report) recently entered into an agreement to sell its three Bangladeshi gas fields to a Chinese consortium through its wholly-owned subsidiary, Chevron Global Ventures, Ltd.
The company is preparing to sell stakes in the Bangladeshi assets to Himalaya Energy Co. Ltd. Investors should know that Himalaya Energy is owned by Chinese state-backed oil explorer, China ZhenHua Oil, and a Hong Kong investment company, CNIC Corporation. CNIC mainly focuses on financing overseas investment by Chinese companies. The deal is yet to receive approval from the Ministry of Commerce of China.
The value of the transaction and other details of the agreement are yet to be disclosed by Chevron Corp.
The government of Bangladesh has the privilege of the first refusal in case of any asset sale in the country. The government is assessing whether it would be profitable for the country to make a bid for the oilfields.
The gas fields of Chevron Bangladesh produce more than 50% of the total gas production in the country. The gas fields are responsible for the production of 720 million cubic feet of gas and 3,000 barrels of condensate or liquid hydrocarbon produced with gas on an average per day. The production-sharing contract signed by Chevron helps it to sell its entire production from the fields in Bibiyana, Jalalabad and Moulavi Bazar to the state oil company, Petrobangla.
This asset sale in Bangladesh is part of Chevron’s decision to divest $10 billion worth of assets in Asia by 2017 to counter the extended slowdown in energy prices.
About the Company
Chevron is one of the largest integrated energy companies in the world. The company has operations in approximately 180 countries and is engaged in every aspect of the oil and natural gas industry, including exploration and production, refining, marketing and transportation, chemicals manufacturing and sales, and power generation. Chevron is headquartered in San Ramon, CA.
Price Performance
In the last six months, Chevron’s shares outperformed the Zacks categorized Oil and Gas - International - Integrated industry. The company’s shares gained 5.13%, whereas the industry recorded a decrease of 1.05%.
Zacks Rank and Stocks to Consider
Chevron presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Enerplus Corporation (ERF - Free Report) , Antero Resources Corporation (AR - Free Report) , and Bellatrix Exploration Ltd. . All these companies sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Enerplus Corporation is expected to witness sales growth of 66.12% year over year in 2017. The company had an average positive earnings surprise of 66.67% in the last four quarters.
Antero Resources is expected to record 8.88% year-over-year growth in 2017 sales. The company had an average positive earnings surprise of 239.10% in the last four quarters.
Bellatrix’s year-over-year sales for the current quarter are expected to rise by 20.13%. The company had an average positive earnings surprise of 58.54% in the last four quarters.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>