Tap higher crude prices but with less risk

Article Excerpt

Oil prices continue to strengthen as COVID-19 travel and other restrictions ease. Despite new government regulations to limit carbon emissions, crude prices will remain elevated as producers like Chevron focus on improving their efficiency instead of increasing production. That should keep pushing up the share price, and your dividend. CHEVRON CORP. $136 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $258.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.2%; TSINetwork Rating: Average; www.chevron.com) is second-largest integrated oil producer in the U.S. by revenue after ExxonMobil (New York symbol XOM). Producing oil and natural gas supplied 84% of Chevron’s earnings in 2021. The other 16% of earnings came from refineries, petrochemical operations and 8,000 gas stations in the U.S. Those refuelling stations operate under the Chevron and Texaco banners. In 2018, Chevron completed two major offshore LNG (liquefied natural gas) projects on Australia’s northwest coast. Chevron owns 47.3% of the first project, called Gorgon, and operates…

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