Chevron Corporation’s (CVX) Pascagoula refinery in Mississippi commenced its 330,000 barrels per day (bpd) hydrogen unit last week. The start-up resulted in emission of more than 1,000 pounds of nitrogen oxide. As per a notice filed with the U.S. National Response Center, this exceeded the permissible amount of nitrogen oxide under its operating license.
The primary products of the Pascagoula, Mississippi based refinery are motor gasoline, jet fuel and diesel fuel. Other products include fuel oils such as bunker fuel, Liquefied Petroleum Gas (LPG), aviation gasoline, petroleum coke and sulfur.
The refinery’s manufacturing, storage and shipping facilities comprise 20 major refining process units, over 200 tanks (600 million gallons total capacity) and marine terminals.
Chevron is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses. Chevron, in its present form, resulted from the 2001 merger between Texaco and Chevron Corporation.
Chevron’s current oil and gas development project pipeline is among the best in the industry, boasting large, multi-year projects. Moreover, Chevron possesses one of the healthiest balance sheets among peers, helping it to capitalize on investment opportunities with the option to make strategic acquisitions.
The resumption of the buyback program not only highlights the oil giant's commitment to create value for shareholders but also underlines its confidence in commodity prices. Additionally, Chevron’s strategic initiatives – aggressive cost reduction initiatives, exiting unprofitable markets and streamlining the organization – are expected to have long-term positive effects.
However, being one of the largest integrated oil and gas companies in the world, Chevron is particularly susceptible to the downside risk from continued weakness in the global economy.
Chevron has a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. For the long term, we maintain our Neutral rating. The company faces considerable threat from its competitors –– Total S.A. (TOT) and Eni SpA (E).
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