Chevron Corp (NYSE: CVX)
With 29 rigs operating in the Permian Basin and a massive acreage position from its legacy holdings, Chevron’s operational scale in this red-hot basin, free cash flow and strong balance sheet give it’s a significant advantage over the competition. And the company isn’t shy about throwing its weight around to extract favorable terms on takeaway capacity and oil-field services. The company’s output in the region averaged 100,000 barrels per day, and management’s guidance calls for this output to grow by 30 to 40 percent annually through 2020.
On the call, management expressed a preference for ongoing investment in the Permian Basin, citing the quality of the resource and opportunities to lower development and operating costs. As for new deepwater projects, tie-backs and fields that can use existing facilities offer the best economics. However, the industry continues to focus on reducing deepwater exploration and development costs. A significant decline day-rates for offshore drilling rigs helps, but a lot of work remains. We’ll continue to monitor the industry’s progress on this front.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Mar. 25, 2021
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.