Chevron (CVX)

History of the Company

Chevron Corp. is an energy company active in over 180 countries and involved in all aspects of gas, oil, and geothermal industries: production, exploration, marketing, refining, chemical manufacturing and power generation. 

The company has its origins in the Standard Oil Company. Antitrust laws forced the Standard Oil Co. of California to break off as a separate company in 1911. In 1984, SoCal merged with Gulf Oil and changed its name to Chevron Corp. Chevron purchased Texaco in 2000, Unocal in 2005, and Atlas Energy in 2011. Today, Chevron is one of the world’s largest oil companies. 

Chevron’s oil and gas exploration and production operations are primarily in the United States (including the Gulf of Mexico), Kazakhstan, Angola, Nigeria, and Australia. Chevron manufactures and sells products such as petrochemicals, additives, lubricants, and fuels. The company is also involved in alternative energy production and research including hydrogen, fuel cells, biofuel, wind, solar, and geothermal energy. 

Chevron has been implicated in several safety and environmental incidents, and has been accused of toxic waste dumping, lack of safety and oversight, and failure to clean up after oil spills. 

Trading Chevron: What You Need to Know

  • A company’s annual report and quarterly earnings reports provide great insights into the future performance of the company. As an energy company, Chevron’s revenues are affected by oil production. Chevron has projected lower production for upcoming years due to a drop in demand and increasing popularity of Liquid Natural Gas (LNG). The LNG projects have the potential to compensate for the crude oil revenues. 
  • Since Chevron has a vertically integrated business controlling all aspects of production from exploration to refining, transport to sales, they are able to operate more efficiently and leverage costs. 
  • Growth in terms of revenues and profits has been estimated and analysts predict a positive growth rate at Chevron. This is driven by its Gorgon Gas Project in Australia, estimated at $43 billion, and a continued increase in LNG production. Demand in the LNG market, especially in China, continues to grow and Chevron is poised to meet this demand. 

Anyone who wants to trade Chevron stock should carefully analyze the market conditions and research the company before trading.

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