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Chevron (CVX) Commences Production From Big Foot in GoM

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Chevron Corporation (CVX - Free Report) recently declared the commencement of production from its Big Foot deepwater project in the U.S. Gulf of Mexico (GoM). The field — first brought to light in 2006 — is expected to hold more than 200 million oil-equivalent barrels of recoverable resources. The production site, at a water depth of around 1,584 meters, is located 360 kilometers south of New Orleans. The Big Foot field has an estimated production life of 35 years. 

Chevron is using a 15-slot drilling and production tension-leg platform at the site, which has a production capacity of 25 million cubic feet of natural gas and 75,000 barrels of oil per day. Production from the site began on time, as expected by the company. This will likely enable Chevron to achieve its 2018 production growth target of 7%. The $4-billion deepwater project was sanctioned during 2010-end.

Notably, Chevron is one of the biggest leaseholders in the GoM. Last year, the company’s net production from the region amounted to 58,000 barrels of crude oil per day, 99 million cubic feet of natural gas per day and 13,000 barrels of natural gas liquids per day.

While Chevron, the operator, has 60% stake in the project, a subsidiary of Equinor ASA (EQNR - Free Report) has 27.5% and Marubeni Oil & Gas holds 12.5%.

Price Performance

San Ramon, CA-based Chevron has gained 1.5% in the past year against the 2.7% collective fall of the industry it belongs to.

 

 

Zacks Rank & Stocks to Consider

Currently, Chevron has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below:

Houston, TX-based Enterprise Products Partners L.P. (EPD - Free Report) holds a Zacks Rank #1 (Strong Buy). The company’s earnings for 2018 are expected to surge more than 35% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX -based TC PipeLines, LP has a Zacks Rank #1. Its earnings for 2018 are expected to grow more than 27% from the 2017 level.

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