Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 13, 2019

Article Excerpt

CHEVRON CORP., $117.96, New York symbol CVX, remains a buy for investors despite announcing a major writedown. Through your shares, you tap the operations of the second-largest integrated oil producer in the U.S. by revenue. That’s after ExxonMobil (New York symbol XOM). Due to weak prices for natural gas, Chevron is writing down the value of some of its producing properties. Those include its U.S. shale operations in Pennsylvania, West Virginia and Ohio. The company also plans to sell its 50% stake in a liquified natural gas project in Kitimat, B.C. and some other international gas projects. In all, Chevron expect those non-cash charges will cut its 2019 fourth quarter earnings by $10 billion to $11 billion. To put those amounts in context, it earned $2.58 billion, or $1.36 a share, in the third quarter of 2019. The company also announced that it will spend $20 billion on exploration and upgrades in 2020, unchanged from 2019. About 84% of that new spending will go…

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