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Chevron (CVX) Gets Shale Exploration Concession in Argentina

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The energy major, Chevron Corporation (CVX - Free Report) , was granted a new concession for shale exploitation in Argentina's Vaca Muerta formation by the Argentine province of Neuquen. The initial investment by Chevron in shale exploration is to be $78.7 million.

CVX intends to invest $65.7 million to drill, complete and commission five horizontal wells of 2,500 to 3,000 meters and 38 to 46 frac stages each during the three-year pilot project stage. Moreover, another additional investment of $13 million in infrastructure will be made.

Per Reuters, Chevron acquired the concession as an operator and holder of the 282.8-square kilometer El Trapial Este block.

The Vaca Muerta shale formation is the world's fourth-largest shale oil reserve and the second largest for shale gas. For the South American country to reverse its enormous energy deficit, the development of Vaca Muerta is considered to be very significant.

Chevron’s managing director in Latin America, Eric Dunning, said that his company is excited to commence this project and that Chevron looks forward to strengthening its commitment to communities at large and its presence in Argentina.

Chevron is one of the largest publicly traded oil and gas companies in the world with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent. It currently churns out oil and natural gas at a 59/41 ratio. As of the end of 2021, the company had proved reserves of approximately 12.4 billion barrels of oil equivalent.

Chevron currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space that warrant a look include ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and PBF Energy (PBF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

ConocoPhillips is valued at around $133 billion. The consensus estimate for ConocoPhillips’ 2022 earnings has been revised 28.6% upward over the past 60 days.

COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 103.9% in a year.

Marathon Oil’s stock has gone up 150.2% in a year. Marathon Oil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 37.4%.

The Zacks Consensus Estimate for MRO’s 2022 earnings is projected at $4.15 per share, up about 164.3% from the projected year-ago earnings of $1.57.

The Zacks Consensus Estimate for PBF Energy’s 2022 earnings has been revised upward by about 192.6% over the past 60 days from $1.21 to $3.54 per share. PBF Energy’s stock has increased 95.4% in a year.

The Zacks Consensus Estimate for PBF’s 2022 earnings is projected at $3.54 per share, up about 241.6% from the projected year-ago loss of $2.50.

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