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) Mulls Over Sale of Eagle Ford Assets Worth $3.8B
Read MoreHide Full Article
Chevron Corporation (CVX - Free Report) is attempting to sell its holdings in south Texas' Eagle Ford Basin, per Reuters' sources. The company's divestiture intentions came after it reportedly met activist hedge fund Engine No. 1 to discuss its measures to reduce carbon emissions.
The energy player calculated all its assets' total proved developed resources — the quantity of oil and gas with 90% or greater likelihood of profitable extraction — were worth roughly $1 billion at $70 per barrel of oil and $4 per metric million British thermal units (MMBtu) of gas, according to the document. The assets might be worth up to $3.8 billion if undeveloped inventory is included.
According to the marketing document, Chevron's Eagle Ford assets, which it obtained as part of its acquisition of Noble Energy last year, encompass 30,440 net acres and this year, the same delivered a net output of 30,300 barrels of oil equivalent per day, of which 45% constitutes natural gas.
Chevron, which intends to start share repurchases in the current quarter, ramped up its sales program in June by attempting to sell two groups of conventional oil and gas assets worth more than $1 billion in the Permian Basin, the most prolific shale play in the United States. It is considering selling lower-value assets to focus on its highest-performing assets.
The firm has no intention to downsize its oil and gas operations in favor of wind and solar energy. It will spend $3 billion over the next seven years on technology to eliminate hazardous emissions from its activities instead of investing in renewable energy sources, such as wind or solar power.
Brief on the Company
Chevron is one of the largest publicly traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is fully integrated, participating in every energy-related process, ranging from oil production to refining and marketing.
Image: Shutterstock
Chevron (CVX) Mulls Over Sale of Eagle Ford Assets Worth $3.8B
Chevron Corporation (CVX - Free Report) is attempting to sell its holdings in south Texas' Eagle Ford Basin, per Reuters' sources. The company's divestiture intentions came after it reportedly met activist hedge fund Engine No. 1 to discuss its measures to reduce carbon emissions.
The energy player calculated all its assets' total proved developed resources — the quantity of oil and gas with 90% or greater likelihood of profitable extraction — were worth roughly $1 billion at $70 per barrel of oil and $4 per metric million British thermal units (MMBtu) of gas, according to the document. The assets might be worth up to $3.8 billion if undeveloped inventory is included.
According to the marketing document, Chevron's Eagle Ford assets, which it obtained as part of its acquisition of Noble Energy last year, encompass 30,440 net acres and this year, the same delivered a net output of 30,300 barrels of oil equivalent per day, of which 45% constitutes natural gas.
Chevron, which intends to start share repurchases in the current quarter, ramped up its sales program in June by attempting to sell two groups of conventional oil and gas assets worth more than $1 billion in the Permian Basin, the most prolific shale play in the United States. It is considering selling lower-value assets to focus on its highest-performing assets.
The firm has no intention to downsize its oil and gas operations in favor of wind and solar energy. It will spend $3 billion over the next seven years on technology to eliminate hazardous emissions from its activities instead of investing in renewable energy sources, such as wind or solar power.
Brief on the Company
Chevron is one of the largest publicly traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is fully integrated, participating in every energy-related process, ranging from oil production to refining and marketing.
Zacks Rank & Other Key Picks
Chevron currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.