CHEVRON CORP. $110 - New York symbol CVX

CHEVRON CORP. $110 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $209.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www. chevron.com) recently sold its 50% stake in Caltex Australia, which owns an oil refinery and 1,800 gas stations in Australia, for $3.6 billion.

The deal is part of Chevron’s plan to sell $15 billion worth of nonessential businesses by 2017. Even with these sales, the company’s oil output will probably average 3.1 million barrels a day in 2017, up 20.6% from 2.57 million in 2014.

That’s mainly because Chevron still plans to start up two big offshore gas projects: the Gorgon field, off Australia’s northwest coast (47.3% owned by Chevron) and the nearby Wheatstone field (64.14%-owned). Each will also have a plant to convert the gas into a liquid for shipment to clients in Asia.

In response to lower oil, Chevron plans to spend $35.0 billion on exploration and upgrades in 2015, down 13% from 2014. It has also suspended share buybacks. This will let the company keep paying quarterly dividends of $1.07 a share, for a 3.9% yield.

Chevron is a buy.

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