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Chevron (CVX) Confirms Joint Venture for CCS Project in Texas
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The American oil and gas supermajor, Chevron Corporation (CVX - Free Report) , recently announced that it closed an agreement to join Talos Energy (TALO - Free Report) and Carbonvert Inc. in a joint venture for the development of the Bayou Bend carbon capture and sequestration (“CCS”) project situated off the Texas Gulf Coast.
Per the terms of the deal, Chevron has taken over 50% of the joint venture for a consideration of $50 million. The amount, which is to be paid to Talos and Carbonvert, comprises $30 million in upfront cash and the remaining $20 million in gross capital cost reimbursement, anticipated to cover TALO and Carbonvert capital expenditures through the project’s final investment decision.
Chevron has the largest holding in the joint venture, while Talos and Carbonvert each have 25% stakes.
The CCS project, which was kicked off by Talos Energy and the carbon capture company Carbonvert, could store about 225 to 275 metric tons of carbon dioxide from industrial sources near Beaumont and Port Arthur.
Earlier this month, CVX declared that it would assist in expanding the joint venture, marking its first CCS project in a completely offshore setting.
The Bayou Bend CCS development covers an area of approximately 40,000 acres. Moreover, the three entities have also set up an area of mutual interest over the 231,000-acre Jefferson County offshore region for future expansion prospects.
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, Chevron 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.
Talos Energy is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities.
Murphy USA is valued at around $6.16 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share has been revised upward by about 47.3% over the past 60 days from $11.42 to $16.82.
Murphy USA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49.1%. MUSA stock has increased 89.9% in a year.
Enerplus stock has rallied 132.1% in a year. The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 22.7% upward over the past 60 days.
The Zacks Consensus Estimate for ERF’s 2022 earnings is projected at $3.35 per share, up about 245.4% from the projected year-ago earnings of 97 cents.
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Chevron (CVX) Confirms Joint Venture for CCS Project in Texas
The American oil and gas supermajor, Chevron Corporation (CVX - Free Report) , recently announced that it closed an agreement to join Talos Energy (TALO - Free Report) and Carbonvert Inc. in a joint venture for the development of the Bayou Bend carbon capture and sequestration (“CCS”) project situated off the Texas Gulf Coast.
Per the terms of the deal, Chevron has taken over 50% of the joint venture for a consideration of $50 million. The amount, which is to be paid to Talos and Carbonvert, comprises $30 million in upfront cash and the remaining $20 million in gross capital cost reimbursement, anticipated to cover TALO and Carbonvert capital expenditures through the project’s final investment decision.
Chevron has the largest holding in the joint venture, while Talos and Carbonvert each have 25% stakes.
The CCS project, which was kicked off by Talos Energy and the carbon capture company Carbonvert, could store about 225 to 275 metric tons of carbon dioxide from industrial sources near Beaumont and Port Arthur.
Earlier this month, CVX declared that it would assist in expanding the joint venture, marking its first CCS project in a completely offshore setting.
The Bayou Bend CCS development covers an area of approximately 40,000 acres. Moreover, the three entities have also set up an area of mutual interest over the 231,000-acre Jefferson County offshore region for future expansion prospects.
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, Chevron 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.
Talos Energy is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations currently in the United States and offshore Mexico, both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities.
Chevron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include — Murphy USA (MUSA - Free Report) and Enerplus (ERF - Free Report) — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is valued at around $6.16 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share has been revised upward by about 47.3% over the past 60 days from $11.42 to $16.82.
Murphy USA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49.1%. MUSA stock has increased 89.9% in a year.
Enerplus stock has rallied 132.1% in a year. The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 22.7% upward over the past 60 days.
The Zacks Consensus Estimate for ERF’s 2022 earnings is projected at $3.35 per share, up about 245.4% from the projected year-ago earnings of 97 cents.