Chevron (CVX) Leads $318M Raise for Svante's Series E Round
Chevron CVX announced that it led a $318-million fundraising round for Canada-based carbon capture tech firm, Svante, being the lead investor in the latter’s series E round. Svante, which develops filters to capture industrial carbon emissions for storage or reuse, will use the funds to accelerate the manufacturing of its carbon capture technology.
The investment by CVX will also support Svante’s filter-manufacturing unit in Vancouver, which is expected to produce enough filter modules to capture millions of tons of carbon dioxide per year across hundreds of large-scale carbon capture and storage facilities.
CVX, in 2021, launched Chevron New Energies (“CNE”) to accelerate lower-carbon business opportunities in carbon capture, utilization, and storage (“CCUS”), hydrogen, renewable fuels and products, offsets and emerging technologies. Moreover, the energy giant intends to invest $10 billion in lower carbon projects through 2028, emphasizing that it remains committed to collaborating in new ways to quicken progress.
Chris Powers, vice president of CCUS with CNE, stated that the company is advancing a full value chain CCUS business and believes that Svante is poised to be a leader in enabling carbon capture solutions. “Innovation is key to enabling these types of breakthrough technologies and lower carbon solutions, and we look forward to applying our experience and expertise to help drive this effort forward,” he added.
Chevron is one of the largest publicly traded oil and gas companies in the world with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing.
Chevron currently carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following better-ranked companies.
Liberty Energy Inc. LBRT currently sports a Zacks Rank #1 (Strong Buy). It offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.
MPLX LP MPLX currently carries a Zacks Rank #2 (Buy). It is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX’s third-quarter earnings of 96 cents per unit beat the Zacks Consensus Estimate of 81 cents.
MPLX is expected to see an earnings rise of 29.7% in 2022. MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents.
Oceaneering International, Inc. OII currently carries a Zacks Rank of 2. It is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.
OII is expected to see an earnings rise of 82.4% in 2022. For 2022, the company projects consolidated EBITDA of $215-$240 million and a continued significant free cash flow generation of $25-$75 million.
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Chevron Corporation (CVX) : Free Stock Analysis Report
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