Group 1 - Chevron is partnering with Engine No. 1 and GE Vernova to develop natural gas power plants in the U.S. to support data centers, particularly for AI development [1][6] - The joint venture aims to create a multi gigawatt-scale power plant and data center, responding to increased electricity demand driven by AI technologies [2][7] - The initial projects, termed "power foundries," will utilize seven GE Vernova 7HA natural gas turbines and are expected to serve data centers in various U.S. regions [6][7] Group 2 - The venture plans to deliver up to four gigawatts of power, sufficient to supply electricity to approximately 3 million to 3.5 million U.S. homes, with initial service targeted by the end of 2027 [7] - The partnership emphasizes the importance of energy in maintaining America's AI leadership and aims to leverage domestic natural gas for electricity generation [8][9] - The collaboration addresses significant energy challenges and aims to enhance productivity across the economy while restoring America's industrial power [9]

Core Viewpoint - Chevron Corporation is expected to report a significant decline in earnings and revenues for the fourth quarter of 2024, reflecting a challenging market environment and fluctuating commodity prices [1][2][3]. Earnings Estimates - The Zacks Consensus Estimate for Q4 2024 earnings per share (EPS) is $2.19, with revenues projected at $47 billion [1]. - EPS estimates have been revised downward by 10.2% in the past 30 days, indicating a year-over-year decline of 36.5% [2]. - For the full year 2024, revenues are estimated at $196.8 billion, representing a 2.1% decrease year over year, while the EPS consensus is $10.18, reflecting a contraction of approximately 22.5% [3]. Production and Market Dynamics - Chevron's total production volume for Q4 2024 is estimated at 3,342 thousand barrels of oil-equivalent per day (MBOE/d), with a 6.9% increase in output attributed to acquisitions and new projects [10][11]. - Upstream income is forecasted to reach $3.7 billion for the quarter, significantly up from $1.6 billion in Q4 2023, driven by improved production and market conditions [11]. Price Trends - Average monthly WTI crude prices showed a decline in Q4 2024 compared to the previous year, with prices at $71.99, $69.95, and $70.12 per barrel for October, November, and December, respectively [8]. - Natural gas prices exhibited mixed trends, with U.S. Henry Hub prices starting lower than the previous year but rebounding in December [9]. Downstream Challenges - The downstream segment is expected to face headwinds, with a consensus estimate for Q4 downstream income at $115 million, a significant drop from $1.1 billion in the same period last year [12]. Valuation and Performance - Chevron's stock is trading at an attractive EV/EBITDA multiple of 6.28, below its 10-year average and favorable compared to ExxonMobil [15]. - Over the past year, Chevron has underperformed compared to ExxonMobil and the S&P 500 [13]. Strategic Initiatives - The expansion of the Tengiz oil field is anticipated to add 260,000 barrels per day, enhancing free cash flow and long-term production growth [16]. - The company's $53 billion acquisition of Hess introduces growth potential but also integration risks and dependency on crude prices and the Chinese economy [18]. Shareholder Returns - Chevron has a $17.5 billion annual share buyback target and offers a 4.2% dividend yield, although rising payout ratios raise sustainability concerns [17].

Group 1 - Chevron (NYSE: CVX) is expected to announce fourth quarter earnings on January 31, 2025, with anticipated earnings slightly lower than Q3 due to declining energy prices in Q4 [1] - Current earnings expectations for Chevron are set, indicating a focus on the company's financial performance amidst market fluctuations [1] Group 2 - The author has a beneficial long position in PSX shares, indicating confidence in the stock's performance [2] - The article expresses personal opinions and is not influenced by compensation from any company mentioned [2]

Core Viewpoint - Chevron Corporation has commenced oil production at the Future Growth Project (FGP) in the Tengiz oil field, marking a significant milestone in the global energy sector and enhancing Kazakhstan's role in the oil market [1][13]. Overview of the Tengiz Oil Field & its Significance - The Tengiz oil field is one of the largest and deepest-producing supergiant oil fields globally, recognized for its massive production potential [2]. - Chevron operates the field through a joint venture, Tengizchevroil LLP, in partnership with Kazakhstan's KazMunayGas, ExxonMobil, and Lukoil, highlighting its strategic importance in meeting global oil demand [2]. Future Growth Project: Expansion of Capacity & Increased Production - The FGP is the third processing plant at the Tengiz field, designed to significantly boost oil production capacity [3]. - The project aims to add 260,000 barrels per day to the field's output, reaching a total of 1 million barrels of oil equivalent per day once fully operational [4][3]. Technological Innovations & Infrastructure Enhancements - The FGP expansion incorporates advanced technologies and infrastructure improvements, including the Wellhead Pressure Management Project (WPMP) completed in 2024, which optimized processing capabilities [5]. - Upgrades include five Frame 9 gas turbine generators and four large compression trains to enhance power supply reliability and pumping capacity [5][6]. CVX's Commitment to Kazakhstan & Local Workforce - Chevron's partnership with Kazakhstan has driven operational success and economic benefits, emphasizing local workforce development and training [7][8]. - The completion of the FGP is seen as a culmination of a multi-year effort to enhance the Tengiz field's capacity [7]. CVX's Strategic Vision for the Future - Chevron's involvement in the Tengiz field aligns with its broader strategy to increase free cash flow and deliver shareholder value, with the FGP marking a significant milestone in this effort [10][11]. - The company aims to leverage advanced technologies to maximize production efficiency and environmental sustainability [10]. Tengizchevroil LLP: A Global Leader in Energy Partnerships - Tengizchevroil LLP is a major energy partnership with CVX holding a 50% stake, alongside ExxonMobil, KazMunayGas, and Lukoil, transforming the Tengiz field into a global oil production powerhouse [12].

Oil Investment Strategies - Chevron offers diversification across upstream, midstream, and downstream energy sectors, which helps stabilize earnings despite oil price volatility [2] - Chevron has increased its dividend annually for 37 consecutive years, with a current yield of 4%, making it a reliable high-yield energy stock [3] - Devon Energy focuses solely on the U S upstream sector, making its financial performance highly sensitive to oil price swings, offering higher upside potential but also greater downside risk [4] - Devon Energy has an investment-grade balance sheet, over 10 years of drilling inventory, and a low break-even point, allowing profitability even in weaker oil price environments [5] - TotalEnergies provides exposure to both traditional oil and clean energy, with its integrated power division contributing 10% of adjusted net operating income in the first nine months of 2024, growing 20% year-over-year [6] - TotalEnergies maintains its dividend while committing to clean energy, differentiating itself from European peers like BP and Shell, and offers a 5 5% dividend yield [7] Investment Recommendations - Chevron is suitable for investors seeking a diversified energy stock with a reliable dividend and attractive yield [9] - Devon Energy is ideal for aggressive investors bullish on rising oil prices [9] - TotalEnergies is recommended for investors who want oil exposure but also believe in the growing importance of clean energy in the global energy mix [9]

Core Viewpoint - Chevron has been trending as a highly searched stock, with recent performance indicating a potential for future price movements influenced by earnings estimates and revenue growth [1][2]. Earnings Estimate Revisions - Chevron is expected to report earnings of $2.19 per share for the current quarter, reflecting a year-over-year decline of -36.5% [5]. - The consensus earnings estimate for the current fiscal year is $10.18, indicating a decrease of -22.5% from the previous year [5]. - For the next fiscal year, the consensus estimate is $11.28, suggesting a year-over-year increase of +10.8% [6]. - The Zacks Rank for Chevron is 3 (Hold), indicating a neutral outlook based on recent changes in earnings estimates [7]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $46.98 billion, showing a slight decline of -0.4% year-over-year [9]. - For the current fiscal year, the revenue estimate is $196.75 billion, reflecting a decrease of -2.1%, while the next fiscal year's estimate is $199.26 billion, indicating a growth of +1.3% [9]. Last Reported Results and Surprise History - In the last reported quarter, Chevron generated revenues of $50.67 billion, down -6.3% year-over-year, with an EPS of $2.51 compared to $3.05 a year ago [10]. - The reported revenues exceeded the Zacks Consensus Estimate of $49.88 billion by +1.58%, and the EPS also surpassed estimates by +1.62% [11]. - Over the last four quarters, Chevron has exceeded consensus EPS estimates three times and revenue estimates twice [11]. Valuation - Chevron is graded B in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [15]. - The evaluation of Chevron's valuation multiples, such as P/E, P/S, and P/CF, suggests a reasonable assessment of its stock price relative to its historical values and peers [13][14].

I've been loading my retirement portfolio with high-quality dividend-paying stocks. While I love the passive income they produce, that's not the primary driver. I mainly focus on buying dividend stocks because they've outperformed non-payers 2-to-1 over the longer term with less volatility. Because of that, I believe they'll put me in a better position to reach my retirement goals.I buy dividend stocks all the time. I recently purchased some more shares of Chevron (CVX -1.16%), T. Rowe Price (TROW -0.23%), ...

U.S. benchmark West Texas Intermediate (WTI) crude oil prices topped $80 per barrel on Jan. 15 after closing out 2024 closer to $70 per barrel. Geopolitical policy is driving higher prices.On Jan. 10, the U.S. hit Russia with strict sanctions, driving up prices. To quote a press release by the U.S. Department of State: "The United States is imposing sanctions today on more than 200 entities and individuals involved in Russia's energy sector and identifying more than 180 vessels as blocked property. This wid ...

The energy sector has entered 2025 with a mix of promise and uncertainty, as multiple factors shape the path forward. From shifting geopolitics to evolving market demands, the landscape remains as volatile as ever. While predictions are inherently complicated — subject to an array of variables that could skew outcomes — five key forecasts stand out this year.Natural gas bullishness, OPEC+ decisions, Chevron’s (CVX) acquisition of Hess Corporation (HES) , biofuels, and market volatility each present unique o ...

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