CVX has 16 billions $ of cash, and higher interest rates should be positive for CVX's savings.
CVX will be increasing the dividend in early 2014, from 3.3% to 3.7%, using histroy as a guide. It should make CVX more attractiive to treasuries agin by then!!!
CVX spent a massive $12.8 billions foe capital expenditures for their 4-5 huge projects, 2 in Austrilia and 2 in the Golf of Mexico. In fact, this is even way more spending than XOM. While taking on so many huge projects may be a good idea for the long term, but CVX is sacrificing some short term pains. People on the street were just talking about low refining margins. True, this is one of the big reasons for the lower than expected EPS. The true reaosn for CVX is the massive spending on the 2 mage projetcs under way. Fortunately, these projetcs shall start to produce a lot of oil and gas staring in 2014.
So, all considerred, CVX is still the best of the major intergrated oils!
last year EPS was 2.55$. I expect them to make $2.7 or better. In fact, if not because of some $1 billionws one time items, we are looking at EPS at more than $3 per share!!!!
just refer to my message. All major oil companies have come out with their earnings. They are universally down some 20-35%. If I am right, CVX should be making $2.7 a share or better. Production is going to be up some 10% over the coming year. The stock has got a lot of upside potential!!!!!
If this does not move CVX up, I do not what will move it up!!! Let's see if it mopves up to 128 area!!!!
first. oil and gas pricees are not that weak, and they are not about to go much weaker. If they do go much weaker, you can expect OPEC will start to make noices about cuttign production to keep prices high.
Also, bear iniind, CVX is trading at p/e just 9, and it willincrease oil and gas production about 10% over the next 20 months or so. CVX is have dividend about 3.3%, and in a few months, it will increse by another 10% at least. CVX also has no net debt on its balance sheet. More oevr, CVX is close ot a position to increse itsa stock buybacks soon.
biggest reason of low p/e over last 4 years or so is due to the massive 18 billion lawsuits against cvx. However, this clooud is finally lifting. The internatinal triburial has just recently ruled that CVX is not liable to this .
For CVX, it is not just low p/e that is making it very attractive. It is more importantly, the fact that a few massive projects are coming on stream over the nest 2-3 years. Expect oil and liqified natural gas wil add 10-15% to productions over the next 2-3 years. And, the decent 3.4% dividend will surely be incresed by at least 10% in 2014.
And, CVX is the only oil major who acturally has more cash at hand than its totaldebt. XOM used to be like CVX, but XOM has this massive sharebuy backs eating up their cah pile. CVX however is only bujying 1.25 billions $ share back a quater, instead focus on dividend increases.
All looking great for CVX 2014!
cvx p/e just 9, general market p/e more than 15.
you are not to the point here for CVX.
Conoco has refining capiacity that was some 3 times of its crude production.
CVX has rwefining capacity now abouthte same as its own oil production. It is a almost perfect mathch for itself. CVX had more refining before, but they have sold out quaite a bit of them, now they are about right. Beesides, their refining is still quiate profitable. Bear in mind, some years, refining is quite profitsable, especially when crude prices are very low. Being intergrated like CVX and XOM, it has way better control over their operations. Over the long term, they are better investments.
Go to chevron web site, then to investors, then to news release, then check the table. They disclosed there they will have a total of 4 one time items, total some $1 billions. Without these, earnings will be more than $3 in the 3quater.
The table that follows includes the estimated absolute values of select additional items in the full quarter.
$MM 3Q 2013 Comments
Foreign Exchange $(250) - $(350) Primarily balance sheet translation effects
Exploration Well Write-offs $(100) - $(200)
Timing Effects $(50) - $(150)
“All Other” Segment Guidance $(400) - $(500) Projected to be higher than the guidance range for the quarter
# # #
Just checked the interm report on CVX web site. The table there lists all the one tie items. These one time items total some $1 billions. It is due to these on time items that earnings will be lower than 2q. However, 3q 2013 will still be more than 10% higher than 3q 2012.
productions is up some 2-3%!!!!