The market ignoring Chevron agreeing to re-enter Venezuela...
They did what Biden asked of them there... this the pay-off check cashed... not giving them the finger...
Did Hunter load up on CVX before the deal got done... or only before the buyback/divvie news ?
Snakes be snakes... as always.
But, with R's winning control of the house... no windfall profits tax... so, yeah... give them that finger...
Oil companies make money now... but need to replace reserves to be sustainable... and do that at some cost.
Either spend $ exploring (which Biden is inhibiting) or buy through acquisition ?
CVX known for "best" quality assets in the biz... also priced as that... made OXY a better risk reward ?
Beyond that... scaling issues...
CVX's own proven reserves are probably the cheapest "future" oil they can buy, now... which makes only more sense w Biden limits on leasing requiring domestic oil production will decline and cost more in the future... while already developed resources with a clear path to production are better than new finds that might be prevented from development...
Your link has it right though... that Biden imposing scarcity has predictable enough impacts on prices, revenue, and profits... in the short term. Monitor company metrics on production and debt elimination vs replacement of resources, though ?
CVX pe = 9.5 from $69 to $174 between Oct 2020 and today (2.5X)
OXY pe = 5.4 from $9 Oct 2020 to $64 today (7.1X)
GTE pe = 2.1... and, look at the relative value... $0.19 Oct 2020 to $0.92 today (4.84X, 9.58X at peak)
FECFF pe = 1.25 and spend their $ on finding more... $1.60 Oct 2020 to $9 today (5.6X, 7.22X at peak))
Guess which ones I prefer... those based in the U.S., or the Calgary/Columbia, or Calgary/Guyana choices?
Funny that R's haven't brought up the exploitation by, or a windfall profits tax on "vaccines" ?
Imagine the outcry if they exempted oil drillers from environmental liability... but, the drug companies can INTEND to kill you without assuming any liability risk ?
Biden says combined profits of SIX major oil companies were $70 billion in one quarter... but, they paid a massive amount of taxes on those profits, too...
Meanwhile... Pfizer alone... posted record revenue of more than $100 billion for 2022
And, Moderna... who even knows ?
Moderna accused of parking vaccine profits in tax havens |
