Chevron Corp. NYSE: CVX It was announced that by the end of 2026 he dismisses approximately 20% of his global labor. The company announced this as an attempt to reduce costs, simplify its business and complete its constant merging with Hess Corp. NYSE: HeField
After the CVX shares were discovered by about 2%, CVX shares were restored, but are still traded more than 10% below 52-week maximum of about 166 dollars. This is not new for investors.
The shares of the oil giant have been in the range over the past 18 months, so long -term investors may ask the question of whether this decision will cause growth that has been absent from CVX shares in recent years. The answer may not be as clear as the dividends of the company that remains one of the key points of sales for CVX shares.
Like other energy reserves in the oil and gas industry, Chevron was faced with lower than expected, raw oil prices, drilling restrictions charged with the previous administration, and costs of costs that come as many traditional oil companies begin to plunge into the renewable Nevertheless, it is important to put this news in the context with the field of energy, because many questions affect the prospects of the company.
“Training, baby, training” meets resistance
In the period from September and the elections in November, the CVX shares grew higher, based on the promise of Donald Trump to “Train, Child, Training” to release America’s energy independence. It was a play that he used with success in his first term. But this is another environment for oil companies that confront the urgent desire to increase production.
The oil and gas industry and the fate of energy reserves as a whole are always regulated by demand and demand. When the price of oil is reduced, oil companies are more expensive, especially for research projects. But this applies to Chevron and other large oil companies such as Exxon Mobil Co. NYSE: Xom and OCCIENTAL Petroleum Corp. NYSE: OxyField
Simply put, they know that if the Trump administration is successful in recheating the market, the price of oil will be directed below. And although Chevron can still break even with $ 50 oil trading, he does not seek to check it right now, especially that he is faced with an overspended project on a large project in Kazakhstan.
The merger with HESS is still weighs on earnings
Chevron continues to wait to complete his merger with HESS. The transaction is subject to the result of the arbitration submitted by Exxon Mobil. It is expected that the transaction will largely pass, but the influence of the merger on future profits affects the shares.
Technology coverage to optimize operations
Chevron reported her profit in the fourth quarter of 2024 on February 7. The company won in the highest line with revenue of $ 52.23 billion, ahead of the expectation of $ 48.41 billion. Nevertheless, the company missed a profit with a profit per share (EPS) of $ 2.06, which is significantly lower than an estimate of $ 2.42.
CVX shares fell by about 4% in the news, but since then recovered. The dismissal took place with additional news that Chevron will move to accept robotics and artificial intelligence in order to modernize and simplify their activities. However, this can be more significant for shares of artificial intelligence than for CVX investors.
CVX supply may be at a fair price
Chevron shares forecast today
$ 174,13
12.12% growthModerate purchase
Based on 17 analysts ratings
| High forecast | $ 194.00 |
|---|---|
| Average forecast | $ 174,13 |
| Low forecast | $ 160.00 |
CHEVRON shares forecast details
The price price for Chevron (P/E) 14.1 rats puts it on average for integrated oil and gas shares. And the shares jumped around their 200-day simple sliding average without much conviction over the past 12 months.
But there are several reasons, in addition to reducing costs, to be optimistic on CVX shares. Firstly, the company will probably benefit from higher exports of LNG. It is also possible that raw oil prices are really rising, not falling. This is due to the fact that the United States must continue to replenish their strategic oil reserve, and, despite the increase in production in 2024, the reserves of raw oil in the United States remain almost at the lowest level in five years.
This is a lot to digest, but in general, the prospects for oil prices in combination with a reduction in Chevron costs maintain forecasts for analysts for a consensus price of $ 174.13 and 11.6% profit compared to the current price. When you unite this with the company’s dividend yield of 4.18%, CVX shares remain high -quality shares in the purchase and retention in the unstable sector.
Chevron Co. (CVX) price diagram for Saturday, February 15, 2025
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