Chevron Corporation (CVX - Free Report) , the second-largest U.S. oil producer, yielded first gas from Alder field – a gas condensate field in the Central North Sea.
The Alder project is an initiative by Chevron North Sea Limited and leading integrated energy player ConocoPhillips (COP - Free Report) . Chevron's subsidiary – Chevron North Sea – is the operator of the field with a 73.7% interest in the project. The remaining 26.3% is held by ConocoPhillips.
The field is forecast to have a capacity of 110 million cubic feet per day of natural gas and 14,000 barrels per day of liquid condensate. All the production from this field – located about 100 miles off of Scotland – will be sent to the ConocoPhillips operated Britannia platform via a 17 mile pipeline.
Per Chevron, the Alder project was originally considered impossible due to the challenges of the field's reservoir, which lies 14,700 foot beneath the seabed. However, the application of innovative subsea technologies designed to meet the temperature and pressure challenges of Alder helped in the development. Notably, this was the first ever production by the Alder project since its discovery in 1975.
The Alder project complements Chevron’s strategy of investing and developing resources in the U.K., enhance the production capacity of its portfolio and increase the field life of Britannia – a vital asset of Chevron in the North Sea.
San Ramon, CA-based Chevron is one of the largest global publicly traded oil and gas companies, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
CHEVRON CORP Price
Chevron currently carries a Zacks Rank #2 (Buy), which implies that the stock will outperform the broader U.S. equity market over the next one to three months.
Some similar-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) and Ultra Petroleum Corp. (UPLMQ - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
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