Chevron Corporation ( CVX Quick Quote CVX - Free Report) recently announced that it signed a definitive agreement to take over full ownership of Beyond6, LLC and its network of 55 compressed natural gas (CNG) stations spread across the United States.
CVX is acquiring ownership from Beyond6’s current co-owners — Mercuria Energy Trading and CEO Andrew West. The financial terms of the deal have not been disclosed.
As part of the transaction, Mercuria will enter into a long-term supply relationship to deliver renewable natural gas (RNG) to Chevron. This will enable CVX to market the RNG it either produces or procures through a nationwide network of CNG locations.
Chevron mentioned that this acquisition of Beyond6 complements the energy giant’s strength in its traditional product business with new offerings. These will assist customers in supporting a lower carbon future, of which RNG is an essential part of the company’s portfolio of solutions.
Additionally, through partnerships with Brightmark and California Bioenergy, Chevron is developing projects across the United States. These are designed to convert fugitive methane emissions from dairies to beneficial use as RNG, which is considered to be carbon negative on a lifecycle basis under California’s Low Carbon Fuel Standard.
Andy Walz, Chevron’s president of Americas Products, stated that the company has seen robust demand for its RNG-to-CNG fuel offering from new and existing customers. “Because of its carbon negative attribute and the ability of fleet operators to efficiently adapt vehicles to run on CNG, renewable natural gas can be a lower carbon solution for fleets seeking to reduce their lifecycle greenhouse gas emissions,” he added.
Chevron, the American oil major, 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.
Chevron currently carries a Zacks Rank #3 (Hold). Investors interested in the energy space might look at some better-ranked stocks —
Marathon Petroleum ( MPC Quick Quote MPC - Free Report) , Par Pacific ( PARR Quick Quote PARR - Free Report) and Equinor ( EQNR Quick Quote EQNR - Free Report) — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings stands at $25.58 per share, which suggests an increase of approximately 944% from the year-ago earnings of $2.45.
Marathon Petroleum beat estimates for earnings in all the trailing four quarters, the average being around 60%.
The Zacks Consensus Estimate for Par Pacific’s 2022 earnings stands at $7.84 per share, which indicates an increase of about 555.8% from the year-ago loss of $1.72.
The consensus mark for PARR’s 2022 earnings has been revised upward two times over the past 60 days from $4.84 to $7.84 per share.
The consensus estimate for Equinor’s 2022 earnings is pegged at $7.54 per share, which implies an increase of about 144.8% from the year-ago earnings of $3.08.
EQNR beat estimates for earnings in all the trailing four quarters, the average being around 10.2%.