Tag Archives: Chevron Corp

News, Politics, Government

Chevron and YPF sign $1.5 billion shale oil deal

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Argentina’s state-controlled YPF oil company has persuaded Chevron Corp. to sign a long-sought deal to invest $1.24 billion developing the South American country’s shale oil deposits.

The joint venture adds up to $1.5 billion overall, the first major foreign oil investment in Argentina since President Cristina Fernandez seized control of YPF from Spain’s Grupo Repsol last year.

YPF CEO Miguel Galuccio and Chevron CEO John Watson presented it Tuesday night to the president, who granted special privileges this week to any oil company investing more than a billion dollars in new shale ventures.

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Source: FULL ARTICLE at Fox World News

News, Politics, Government

Brazil authorizes Chevron to resume production

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Brazil‘s National Petroleum Agency says it has authorized Chevron Corp to resume production on six offshore wells off the coast of Rio de Janeiro after more than 100,000 gallons of crude seeped into the ocean there.

The agency says Friday’s authorization will last one year. In an emailed statement, the Rio-based agency said a security team would be monitoring the U.S.-based company’s operations.

An estimated 110,000 gallons (416,300 liters) of crude seeped into the ocean near the Chevron well in November, 2011. The leaks resumed several months later, and the company’s production in the Frade field was suspended. The field had been producing around 62,000 barrels a day.

Criminal charges against Chevron and driller Transocean Ltd. were dropped but both still face two civil lawsuits seeking $20 billion in damages.

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Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Seven Stocks That Will Take the DJIA to 15,000 (IBM, CVX, MMM, MCD, UTX, CAT, XOM)

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By 24/7 Wall St.

Wall St Bull statue

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The Dow Jones Industrial Average hit a new high this week, and the new closing high is 14,253.77. We originally came up with a top price target for the DJIA of 14,590 for 2013 based upon our own DJIA analysis and methodology. We now expect that number to be surpassed, even if we have not officially raised the target. The reality is that by our take it will only require the top seven of the 30 DJIA stocks to perform this year for the DJIA to hit 15,000.

International Business Machines Corp. (NYSE: IBM), Chevron Corp. (NYSE: CVX), 3M Co. (NYSE: MMM), McDonald’s Corp. (NYSE: MCD), United Technologies Corp. (NYSE: UTX), Caterpillar Inc. (NYSE: CAT) and Exxon Mobil Corp. (NYSE: XOM) will likely be the seven stocks of the 30 DJIA components that lead the index to 15,000. At issue is that the DJIA is a price-weighted index that does not care about the market capitalization. These seven DJIA stocks account for 43% of the entire weighting of the 30 DJIA components.

For instance, General Electric Co. (NYSE: GE) has a $245 billion market cap, yet its $23.59 share price generates a weighing of only 1.27%. Then you have 3M Co. (NYSE: MMM) with a 5.63% weighting because its price is $104.45, and United Technologies Corp. (NYSE: UTX) has a 4.9% weighting in the DJIA because its price is $89.13. Combined, two these companies have a market cap of $159 billion. So GE is worth almost 150% of the market cap, but its weighting in the DJIA at 1.27% compares to the combined weighting of 10.73% for 3M and United Tech. Now you know how silly the DJIA can be as an index, even if investors are usually referring to the DJIA when they say “the market.”

If you took the bottom seven DJIA components, you barely get a 7% combined weighting in the DJIA. These stocks could all double in a static scenario, where the other stocks remain the same, and you would barely get close to the 15,000 mark.

A review at IndexArb.com shows just how much these weightings matter, with a cumulative weighting after each component:

1) IBM 11.13; 11.13
2) Chevron 6.35; 17.48
3) 3M 5.63; 23.11
4) McDonald’s 5.16; 28.27
5) United Technologies 4.90; 33.17
6) Caterpillar 4.86; 38.03
7) Exxon Mobil 4.83; 42.86

International Business Machines Corp. (NYSE: IBM) is at $206.53, against a 52-week range of $181.85 to $211.79. The consensus target price is $225.75, implying an expected gain of 9.3%. IBM‘s dividend yield is 1.7% but has been rising, and the company keeps buying back stock. Warren Buffett has bought a large stake that is likely to rise as well.

Chevron Corp. (NYSE: CVX) trades at $117.93, against a 52-week range of $95.73 to $118.53. Its consensus target price is $124.51, implying upside of 5.6%, and it has a 3.1% …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Value of All Oil at Exxon Mobil: Over $2.2 Trillion!

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By 24/7 Wall St.

Oil price rise graphic

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Exxon Mobil Corp. (NYSE: XOM) was just featured as one of our seven DJIA stocks that would lead the DJIA to 15,000 and the company is delivering its production and capital spending estimates to analysts today. The oil and gas giant projects that its new major project start-ups will deliver 1 million oil-equivalent barrels over the next five years. What the company did not show you is that its proved reserves has a current snapshot market value of more than $2.2 trillion.

CEO Rex Tillerson tells analysts that the company’s crude oil production and other liquids should increase by 4% per year between 2013 and 2017, based on the new production analysis of 28 major oil and gas projects. Tillerson also said that 24 of those projects are liquids or liquids-linked projects. Twenty-two major projects will start production over the next three years, including an expansion of the Kearl Oil Sands Project in Alberta, Canada, and a liquefied natural gas export project in Papua New Guinea.

In a presentation to investment analysts, Tillerson said the company has a “growing global portfolio of high-quality resource opportunities with exploration success most recently in Romania and Tanzania.” Tillerson also said that the company is planning to more than double its exploration acreage in a range of proven and emerging locations that includes Russia by name to feed its inventory in the coming years. Its capital spending plan is to invest roughly $190 billion over the next five years.

Exxon Mobil said that it replaced 115% of 2012 production and has replaced 174% of its crude oil and other liquids, making it the 19th consecutive year the company replaced more than 100% of its production, with proved reserve additions of 1.8 billion oil-equivalent barrels.

Here is the figure that you need to know about the largest oil company: its proved reserves are at 25.2 billion oil equivalent barrels. Imagine what this translates to in real dollars at $90.00 a barrel oil. That is $2.268 trillion worth of oil in its proved reserves.

Exxon Mobil‘s market cap is $403 billion. If Exxon Mobil was merely treated as a closed-end fund, investors would say that the company trades at only about 18% of its net asset value. Things are far more complicated than that, but it is an interesting way for investors to look at this. If you just consider what Exxon Mobil is expected to make in profits this year, Exxon trades at about 11 times earnings. That is the real way to look at the company.

We are sticking with our prediction that both Exxon Mobil and Chevron Corp. (NYSE: CVX) will hike their dividends in the coming weeks.

Filed under: 24/7 Wall St. Wire, Annual Report, Oil & Gas Tagged: CVX, XOM

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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Criminal charges dropped against Chevron in Brazil

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A Brazilian federal court has dismissed criminal charges filed last year against Chevron Corp., driller Transocean Ltd. and several of their executives in connection with a 2011 oil spill off the coast of Rio de Janeiro.

The two companies and 17 of their executives had been charged with “crimes against the environment” and faced up to 31 years in prison if convicted.

Judge Marcelo Luzio sent the charges back to prosecutors, who have five days to appeal his ruling, a court official said Thursday. The official did not provide further details. She spoke on condition of anonymity because she was not authorized to speak to the news media.

The prosecutor’s office said it would not have any immediate comment.

Chevron said in a statement that it was pleased by the court’s decision and that it remained “committed to its policy of full transparency and close cooperation with Brazilian authorities.”

Transocean said it welcomed the ruling, which it said showed that “Transocean’s crew members did exactly what they were trained to do, acting responsibly, appropriately and quickly while always maintaining safety as their top priority.”

The companies still face two civil lawsuits seeking $20 billion in damages for the spill, in which about 155,000 gallons of crude oil leaked from the seabed near a Chevron well off the coast in November 2011.

“Both sides are seeking an agreement regarding the amount to be paid,” said Marcelo Del Negri, a spokesman at the federal prosecutor’s office. “All I can tell you is that they have offered to pay far less than what we want — about $160 million.”

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Source: FULL ARTICLE at Fox World News

News, Politics, Government

Argentine court upholds freeze on Chevron assets

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The winners of a major environmental damages judgment in Ecuador say an appeals court in Argentina has spurned an attempt to unfreeze Chevron Corp.’s assets there.

Plaintiffs’ attorney Pablo Fajardo says an appeals court refused Wednesday to lift an embargo that a lower-court judge imposed in November.

The plaintiffs are trying to collect on a $19 billion award ordered by an Ecuadorean court over oil contamination in the Amazon more than two decades ago.

Chevron has no assets in Ecuador, so the plaintiffs have filed suits in Canada, Brazil and Argentina.

Chevron has refused to pay the Ecuador judgment, calling it the result of judicial fraud.

It said Wednesday that if the judgment were legitimate the plaintiffs would be seeking relief in the United States, where the company is headquartered.

Source: FULL ARTICLE at Fox World News