Chevron Corporation CVX, the second-largest U.S. oil producer, recently reported that it has started production at the Mafumeira Sul oil field along with Angolan state oil major – Sonangol. The initial production capacity of the field is 10,000 barrels per day.
The Mafumeira Sul oil field is estimated to produce 110,000 barrels per day or more, once fully developed. Located off the coast of Angola, the project is worth $5.6 billion and currently uses early production systems or EPS to produce 10,000 barrels of oil per day.
Sonangol has a 41% stake in the Mafumeira Sul oil project. Chevron, on the other hand, holds a 39.2% interest. The other partners are Total S.A. (TOT) and Eni SpA (E) with 10% and 9.8%, respectively.
San Ramon, CA-based Chevron is one of the largest global publicly traded oil and gas companies, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
Recently, Chevron yielded first gas from Alder field – a gas condensate field in the Central North Sea. The Alder project complements Chevron’s strategy of investing and developing resources in the U.K., enhance the production capacity of its portfolio and increase the field life of Britannia – a vital asset of Chevron in the North Sea.
CHEVRON CORP Price
Chevron currently carries a Zacks Rank #3 (Hold) which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. BAK, Ultra Petroleum Corp. UPLMQ and McDermott International Inc. MDR. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
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