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Chevron's (CVX) Richmond Refinery Resumes Operations Post Outage

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Chevron Corporation (CVX - Free Report) announced that its Richmond refinery, located near San Francisco, has successfully resumed operations after an overnight power outage caused by unplanned flaring. The incident led to the release of visible smoke from four smokestacks at the refinery, as reported by Dow Jones on Tuesday, citing a company filing with California regulators.

CVX initially encountered a series of unplanned unit shutdowns, resulting in the flaring incident. In response to the event, Chevron issued a Level 1 notification to the Community Warning System on the previous night. This decision was made due to the visibility of the flaring and the associated smoke. It's worth noting that a Level 1 incident, as clarified by Chevron, does not necessitate any specific action from the public.

The incident raised concerns about air quality and safety in the surrounding community. Chevron, however, has not reported any injury or environmental impact from the power outage and subsequent flaring. The company stated that the facility's overnight emissions of "large flames" and "black smoke" have been successfully brought under control, and flaring has ceased.

Chevron has been working diligently to address the issues and bring the Richmond refinery back online. The facility, which has a daily refining capacity of 245,000 barrels, plays a crucial role in Chevron's overall operations.Despite the temporary setback, Chevron has affirmed that the refinery's operations have resumed without interruption, ensuring a continuous supply to its customers.

Zacks Rank & Key Picks

Chevron currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) , Liberty Energy Inc. (LBRT - Free Report) and Oceaneering International, Inc. (OII - Free Report) . While Matador Resources sports a Zacks Rank #1 (Strong Buy) at present, Liberty Energy and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.

MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.

Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Liberty's strong relationship with high-quality customers provides revenue visibility and business certainty.

LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.

Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.

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