Chevron: Cash Flow Monster On Sale

Summary:

  • Chevron Corporation is growing production organically and by acquisition with the newly announced PDC Energy, Inc. pickup. We will take a quick look at the PDC deal in this article.
  • Cost control is a key aspect of the company’s outstanding financial performance.
  • We think Chevron Corporation is attractive at current levels for growth and income.

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Introduction

Chevron Corporation (NYSE:CVX) is trading near all-time highs and is scaring some investors and authors on Seeking Alpha. We think these concerns are overblown and investors who are long the stock should look through

CVX price chart

CVX price chart (Seeking Alpha)

CVX dividend history

CVX dividend history (Seeking Alpha)

CVX Operating Leverag

CVX Operating Leverage (Data Seeking Alpha/Chart by author)

CVX Opr Lev with COR

CVX Opr Lev with COR (Data Seeking Alpha/Chart by author)

CVX Capital Efficiency

CVX Capital Efficiency (CVX)

CVX Production growth

CVX Production growth (CVX)

CVX/PDC deal slide

CVX/PDC deal slide (CVX)

CVX GoM projects

CVX GoM projects (CVX)

CVX TCO slide

CVX TCO slide (CVX)

CVX Low Carbon

CVX Low Carbon (CVX)

CVX CCUS

CVX CCUS (CVX)

CVX 10 year reserves

CVX 10 year reserves (CVX)


Analyst’s Disclosure: I/we have a beneficial long position in the shares of CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is not advice to buy or sell this stock or ETF in spite of the particular rating I am required to select in the SA template. I am not an accountant or CPA or CFA. This article is intended to provide information to interested parties and is in no way a recommendation to buy or sell the securities mentioned. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to do their own due diligence before investing their hard-earned cash.

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