Chevron Corporation Intrinsic Value – Chevron Corporation Aims to Achieve Higher Returns Through Capital and Cost Discipline with Annual Organic Capital Expenditures of $13B-$15B Through 2027.

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Chevron Corporation Intrinsic Value – At the annual investor meeting of Chevron Corporation ($NYSE:CVX), it was announced that the company will be taking proactive steps to attain higher returns. To reach this aim, Chevron is exercising capital and cost discipline while expanding energy supplies. This is expected to drive a 3% energy production growth rate over the period, with a 12% return on capital employed goal by 2027 when Brent is at $60.

In addition to this, Chevron is targeting free cash flow growth of more than 10% when Brent is at $60. Lastly, the company has raised its share buyback guidance range to $10B to $20B per annum. It remains to be seen if these ambitious goals are met by the company.

Price History

This announcement has been well-received by the market, with news coverage mostly being positive. On Tuesday, the company’s stock opened at $164.3 and closed at $160.8, representing a drop of 1.3% from the previous closing price of 162.8. It is expected that the company will be able to achieve their goals of higher return as they continue to focus on capital and cost discipline. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Chevron Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Chevron Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Chevron Corporation. More…

Key Ratios Snapshot

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

Analysis – Chevron Corporation Intrinsic Value

At GoodWhale, we believe in providing investors with the insights and tools needed to make smart investments. Using our proprietary Valuation Line, we have determined that the intrinsic value of CHEVRON CORPORATION is around $186.8. Currently, the stock is trading at $160.8, a fair price that is slightly undervalued by 13.9%. This gives investors the opportunity to invest in CHEVRON CORPORATION for a potentially good return on their money. We believe in giving investors the data and insight needed to make informed decisions and feel confident investing in CHEVRON CORPORATION. We hope our analysis of the company’s financials helps you make the best decision for your portfolio. 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 looking to increase returns through sound capital and cost discipline, targeting annual organic capital expenditures of $13B – $15B through 2027. News coverage on the company is mostly positive and analysts see this as an indication of a strong future outlook. Chevron’s strategy of disciplined investing with a focus on quality assets, reducing costs and maintaining discipline in capital spending is seen as an effective way to increase its long-term returns. Going forward, investors can expect Chevron to continue to lean on its core strengths as it works to meet its goal of higher returns.