Chevron CEO Dismisses Possibility of Venezuela Striking Guyana

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Chevron Corporation ($NYSE:CVX), an American multinational energy corporation, recently made headlines when its CEO, Mike Wirth, dismissed the possibility of Venezuela attacking Guyana. In an interview with the Financial Times, Wirth expressed that he believes it is unlikely that Venezuela would launch a military offensive against its neighbor for control of the oil-rich Essequibo region. Wirth commented that he trusts that the two countries will be able to settle their dispute peacefully and without military intervention.

The company is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining and marketing of petroleum products. Despite this, Wirth believes that this will not cause any issues between the two countries and that they will be able to settle their dispute without resorting to violence.

Share Price

On Monday, CHEVRON CORPORATION stock opened at $144.8 and closed at $144.4. This happened amid concerns that Venezuela might be making moves to strike the offshore oil fields of newly-independent Guyana.

However, these concerns were quickly dismissed by Michael Wirth, the CEO of Chevron, who affirmed that the company was not expecting any kind of aggression or interference from Venezuela. Wirth stated that Chevron will continue to focus on safely and responsibly exploring and developing Guyana’s vast oil and gas resources. The company has since made several successful discoveries in the area which have further strengthened their foothold in the region. Chevron is now the largest holder of offshore exploration acreage in Guyana and is also reportedly planning to build an LNG export facility in the country. Given these developments, it is unlikely that Venezuela will pose any significant threat to the operations of Chevron in Guyana. In fact, with the increasing investments being made by Chevron in Guyana’s oil and gas sector, it is likely that it would be beneficial for both countries in the long term. Live Quote…

About the Company

Income Snapshot

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Balance Sheet Snapshot

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Some of the financial key ratios for Chevron Corporation are shown below. More…

Analysis

GoodWhale has analyzed the financials of CHEVRON CORPORATION and found that it has a high health score of 10/10 when it comes to its cashflows and debt, meaning it can pay off its debts and fund future operations well. According to our Star Chart, CHEVRON CORPORATION is classified as a ‘rhino’, a type of company that has achieved moderate growth in terms of its revenues or earnings. Investors interested in such companies may be drawn to CHEVRON CORPORATION’s strong dividend, medium asset, growth, and profitability. This could make CHEVRON CORPORATION an attractive investment opportunity for those investors interested in long-term returns with minimal risk. As a result, investors seeking capital preservation and steady returns may find CHEVRON CORPORATION to be an attractive option. More…

Peers

The Chevron Corp competes with Exxon Mobil Corp, Occidental Petroleum Corp, and ConocoPhillips. All of these companies are in the business of exploring for, developing, and producing crude oil and natural gas. Chevron is one of the largest of the supermajor oil companies, with operations in more than 180 countries.

– Exxon Mobil Corp ($NYSE:XOM)

Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999 by the merger of Exxon (formerly the Standard Oil Company of New Jersey) and Mobil (formerly the Standard Oil Company of New York). The world’s seventh largest company by revenue, ExxonMobil is also the seventh largest publicly traded company by market capitalization. The company ranked ninth globally in the Forbes Global 2000 list in 2014.

– Occidental Petroleum Corp ($NYSE:OXY)

Occidental Petroleum Corp is a large American oil and gas company with operations in the United States, the Middle East, and Latin America. The company has a market cap of 63.77B as of 2022 and a return on equity of 29.73%. Occidental Petroleum is one of the largest oil and gas companies in the world and is engaged in the exploration, production, and marketing of crude oil and natural gas. The company’s primary operations are in the United States, but it also has a significant presence in the Middle East and Latin America. Occidental Petroleum is a publicly traded company and its shares are listed on the New York Stock Exchange.

– ConocoPhillips ($NYSE:COP)

ConocoPhillips is an American multinational energy corporation with its headquarters in Houston, Texas. The company is engaged in the exploration, production, marketing, and transportation of crude oil, bitumen, natural gas, and liquefied natural gas. As of December 31, 2019, the company had estimated proved reserves of 8.4 billion barrels of oil equivalent.

ConocoPhillips has a market capitalization of $150.08 billion as of January 2021. The company’s return on equity was 30.9% for the year ended December 31, 2020.

ConocoPhillips is one of the world’s largest independent exploration and production companies, with operations in more than 30 countries. The company’s main business activities include the exploration, development, production, and marketing of crude oil, natural gas, and liquefied natural gas. ConocoPhillips also has a significant refining and marketing business.

Summary

Chevron Corporation is a multinational energy corporation based in the United States. Chevron has a diversified portfolio of businesses spanning oil and gas exploration, production, refining, marketing and transportation. Analysts recommend investors assess Chevron’s financial and operational condition before investing.

In addition, Chevron CEO Michael Wirth recently discounted the possibility of Venezuela striking Guyana, creating an opportunity for the company to potentially explore further operations in the region. Chevron’s stock is currently overvalued relative to its peers and is expected to remain volatile given the macroeconomic conditions.