CVX
Chevron Corporation
Industrial/Transportation
12/18/2014
Presented
| Date | 12/16/2014 |
| Price | $101.70 |
| Market Cap | $192.00B |
| Ent Value | $203.66B |
| P/E Ratio | 9.4x |
| Book Value | $82.60 |
| Div Yield | 4.1% |
| Shares O/S | 1,890.42M |
| Ave Daily Vol | 7,540,000 |
| Short Int | 0.84% |
Current
| Price | $147.73 |
| Market Cap | $270.19B |
| Chevron Corporation, through its subsidiaries, is engaged in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals and fuel and lubricant additives, as well as plastics for industrial uses. Chevron Corporation is also involved in coal and molybdenum mining operations; cash management and debt financing activities; insurance operations; real estate activities; and energy services, and alternative fuels and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California. |
Publicly traded companies mentioned herein: Chevron Corporation (CVX), ConocoPhillips (COP), Petroleo Brasileiro SA (PBR / PETR4 BZ), YPF SA (YPF)
Highlights
The group discussed the recent decline in the price of oil and the impact on the sector. One participant pointed out that many stocks have seen declines substantially larger (2x) than the slide in the price of oil (25%) over the preceding four weeks (ending December 12). However, the second derivative on the rate of change appears to have slowed, and correlations are extremely high. He and the rest of the group are unsure of what level of crude prices, and what expectation for crude (i.e., less than $60-65, or a higher range), is priced into energy stocks, but the group largely suspects that $70-80 is the right range for the price for oil. That said, the risk still exists that the price of oil (and thus the correlated stock prices) could be consolidating before another decline, and “The next $10 move in the price of crude should be more meaningful in value as a percent of cash flow and what’s left to equity value.” Regardless, the presenter sees a number of the major integrated oil and gas producers as overvalued, and explained the basis for his short position in Chevron (CVX) as follows:
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