Low p/e, Jack 2 Make Chevron a Buy

Article Excerpt

CHEVRON CORP. $64 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; WSSF Rating: Above average) is one of the world’s largest integrated oil companies. It explores for and produces oil and natural gas in over 35 countries, and operates refineries that convert crude oil into gasoline and petrochemical products. It also owns over 26,000 retail gas stations. The company gets roughly 60% of its revenue from oil and natural gas sales. Refined products supply the other 40%. The United States accounts for half of Chevron’s revenue, and a third of its profit. The company took its present form in 2001 through the merger of Chevron and Texaco Inc. However, falling oil prices cut the new company’s revenue from $106.2 billion in 2001 to $99.0 billion in 2002. Prices improved, and revenues grew to $155.3 billion in 2004. Profits fell from $1.55 a share (total $3.3 billion) in 2001 to $0.54 a share ($1.1 billion) in 2002, but grew to $6.28 a share ($13.3…

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