Chevron's stock rises 10% in a year, faces uncertainty with $53 billion Hess acquisition
From Nasdaq: 2024-12-15 21:32:35
Chevron Corporation (NYSE: CVX) stock has risen 10% in the last year, currently priced at around $156 per share. Despite lagging behind the S&P 500 and Exxon Mobil, Chevron’s pending $53 billion acquisition of Hess is causing investor concern due to potential delays and uncertainties regarding a large acquisition.
Chevron’s acquisition plans face a hurdle as Exxon believes it has the right to buy out Hess in a key energy project in Guyana if it sells to Chevron. This uncertainty has led to volatility in CVX stock returns, with annual fluctuations of 46%, 58%, and -14% over the last three years.
Brent crude oil trades at around $74 per barrel amid global market weakness and geopolitical tensions. Chevron’s diversified energy business is affected by oil price fluctuations, but its strong balance sheet positions it for long-term gains even in a volatile market.
In Q3, Chevron reported a net income of $4.49 billion, beating expectations but down 31% from the previous year due to lower margins and oil prices. The company’s revenue was $50.67 billion, with production up 7% driven by record output in the Permian Basin.
Chevron aims to sell assets in Canada, Congo, and Alaska to streamline its portfolio and reduce costs by $2-3 billion by 2026. Comparing to peers, Chevron’s stock performance is analyzed on relevant metrics in the CVX Peers report. 1. The stock market saw a significant increase today, with the Dow Jones Industrial Average rising by 200 points. This increase was driven by positive earnings reports from major tech companies such as Apple and Amazon, which exceeded analysts’ expectations.
2. In other news, a new study has found that over 50% of Americans are now fully vaccinated against COVID-19. This milestone is a major step towards achieving herd immunity and bringing an end to the pandemic. Health officials are encouraging those who have not yet been vaccinated to do so as soon as possible.
3. The US economy added 850,000 jobs in the month of June, exceeding economists’ projections by a wide margin. This strong job growth is a sign of a recovering economy as businesses continue to reopen and hire more workers. The unemployment rate also dropped to 5.9%, down from 6.1% in May.
4. A heatwave is currently sweeping across the western United States, with temperatures reaching record highs in several states. This extreme heat has prompted heat advisories and warnings in many areas, with residents being urged to take precautions to stay safe and cool. The heatwave is expected to continue for the next few days.
Read more at Nasdaq: What’s Next For Chevron’s Stock?