August 22, 2023
August 2023 Report: Chevron Corporation’s recent financial performance has been impacted by lower upstream realizations and decreased margins on refined product sales. The Q2 (latest) filing reported unfavorable comparisons due to these factors. However, the company’s record production from the Permian Basin provided support. The acquisition of PDC Energy added over one billion barrels of oil in proved reserves to Chevron’s portfolio, and it’s expected to contribute an additional $1 billion to annual free cash flow.
May 2023 Report: Chevron Corporation’s sales and earnings per share are expected to decline due to a challenging pricing environment and a modest production decrease. The company focuses on expanding its lower-emission businesses and has partnered to introduce plant-based oil with a lower carbon profile. Initiatives like the collaboration with Bunge and Corteva and the agreement with JERA for carbon capture projects demonstrate Chevron’s commitment to sustainability and innovation. The stock’s performance is expected to track broader market averages, with long-term potential for improvement.
February 2023 Report: Chevron Corporation reported strong results for the fourth quarter of 2022, with increased sales and share earnings due to healthy production levels and favorable pricing. The company’s measures to enhance shareholder value, such as a dividend increase and a $75 billion share repurchase authorization, show a focus on maximizing returns for investors. Chevron’s long-term prospects appear favorable, given its position as a major player in the energy sector and its investments in traditional and new energy initiatives. While short-term challenges are noted, Chevron’s financial strength and potential for future growth remain positive.
In conclusion, Chevron has experienced fluctuations in its financial performance over the past three reports because of pricing environments, production levels, and strategic initiatives. Despite many challenges, Chevron’s focus on sustainability, shareholder value, and growth positions it well for the future. Chevron remains well-positioned as one of the largest oil companies globally and a great selection for the Maverick Investor’s portfolio.
The recent price trend has been bearish, and the technical indicators reflect a short-term sell, which led to a reduction in portfolio weighting. But the long-term Bull trend is intact, and the intermediate and long-term technical indicators remain bullish. Without referring to adding or reducing positions, there is no reason to remove CVX from the portfolio.
