Chevron Corp.
New York symbol CVX, is the second-largest integrated oil company in the United States after ExxonMobil. Production accounts for about 80% of its earnings. The remaining 20% comes from refineries and retail gas stations.
Chevron recently warned that harsh winter weather in Canada, the U.S. and Kazakhstan hurt its production and earnings in the first quarter of 2014. This is a minor setback, because its output should rise again as the weather improves.
The company’s long-term outlook is also bright, particularly because it’s getting ready to start up several major projects that should spur decades of growth....
The company’s long-term outlook is also bright, particularly because it’s getting ready to start up several major projects that should spur decades of growth....
CHEVRON CORP. $125 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $237.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.chevron.com) is the second-largest integrated oil company in the U.S. by revenue, after ExxonMobil (New York symbol XOM).
Chevron gets 90% of its earnings by producing oil (67% of total production) and natural gas (33%). The remaining 10% comes from its refineries, petrochemical operations and 8,050 gas stations in the U.S., which operate under the Chevron and Texaco banners. The company owns 400 of these locations and supplies fuel to an additional 8,600 stations outside the U.S.
At the end of 2013, Chevron’s proven reserves totaled 11.2 billion barrels of oil equivalent (57% oil and 43% natural gas). Based on its average 2013 production of 2.6 million barrels a day, that would last 11.8 years.
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Chevron gets 90% of its earnings by producing oil (67% of total production) and natural gas (33%). The remaining 10% comes from its refineries, petrochemical operations and 8,050 gas stations in the U.S., which operate under the Chevron and Texaco banners. The company owns 400 of these locations and supplies fuel to an additional 8,600 stations outside the U.S.
At the end of 2013, Chevron’s proven reserves totaled 11.2 billion barrels of oil equivalent (57% oil and 43% natural gas). Based on its average 2013 production of 2.6 million barrels a day, that would last 11.8 years.
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PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 17, 2014. PROCTER & GAMBLE CO., $80.76, New York symbol PG, is selling most of its pet food business to privately held Mars Inc. Under the deal, Mars will get the right to make Iams, Eukanuba and Natura pet foods in North America and Latin America, which supply 80% of these brands’ sales. Procter aims to sell its remaining pet food operations in Europe and elsewhere, probably in the next few months. That will let it focus on its more-profitable household and personal care products....
The Schwab U.S. Broad Market ETF, $45.86, symbol SCHB on New York (Units outstanding: 67.4 million; Market cap: $3.1 billion; www.schwabetfs.com), aims to offer diversified exposure across large- and small-cap U.S. stocks. It tracks the roughly 2,500 stocks in the Dow Jones U.S. Broad Stock Market Index. The ETF has an MER of just 0.04%. It yields 1.8%. The index’s 10 highest-weighted stocks are Apple, Exxon Mobil, Microsoft, Johnson & Johnson, General Electric, Google, Chevron, Wells Fargo, Berkshire Hathaway and J.P. Morgan Chase....
SPDR DOW JONES INDUSTRIAL AVERAGE ETF $163.35 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average.
The SPDR Dow Jones ETF’s top holdings are Visa, IBM, Goldman Sachs Group, ExxonMobil, Chevron, 3M, McDonald’s, Caterpillar, United Technologies and Boeing. The fund’s expenses are about 0.17% of its assets.
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SPDR S&P 500 ETF $187.75 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. companies that are chosen based on their market cap, liquidity and industry group.
The index’s highest-weighted stocks are Apple, ExxonMobil, Google, Microsoft, Procter & Gamble, Johnson & Johnson, J.P. Morgan Chase, IBM, Chevron, General Electric, Pfizer, Berkshire Hathaway, Verizon and Wells Fargo. The fund’s expenses are just 0.10% of its assets.
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ARCHER DANIELS MIDLAND CO., $41.33, New York symbol ADM, processes corn, wheat, soybeans, canola, flax seed, peanuts, cocoa and other crops into a wide variety of food ingredients, such as flour, oils and sweeteners. It is also the largest maker of ethanol from corn in the U.S. The company owns port facilities, inland grain elevators and an oilseed processing plant in Ukraine. These assets continue to operate normally, despite the political turmoil in that country. As well, the new Ukrainian government has pledged to protect the country’s large agricultural industry. The country accounts for 17% the world’s wheat exports and 16% of its corn shipments....
Exchange traded funds (ETFs) are set up to mirror the performance of a stock-market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index.
ETFs trade on stock exchanges, just like stocks....
ETFs trade on stock exchanges, just like stocks....
iShares S&P 500 Fund, $24.65, symbol XUS on Toronto (Shares outstanding: 3.4 million; Market cap: $83.8 million; ca.ishares.com), holds the stocks in the S&P 500 Index, which is made up of 500 major U.S. companies selected by industry group, market size and liquidity. The index’s 10 highest-weighted stocks are Apple, Exxon Mobil, Google, General Electric, Johnson & Johnson, Microsoft, Chevron, Procter & Gamble, Berkshire Hathaway and Wells Fargo. The ETF’s MER is 0.14%. It yields 1.6%....
New technology has increased oil production from North American shale rock formations. Even so, oil prices have held up due to the improving global economy and lower output from conventional wells....
