Chevron’s Upstream segment is involved in the exploration, development, production and transportation of crude oil and natural gas; processing, liquefaction, transportation and regasification associated with LNG; transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operating a gas-to-liquids plant.
The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It is also involved in cash management and debt financing activities, insurance operations, real estate activities and technology businesses.
The company posted strong third-quarter results, driven by massive global demand for its oil and gas and rising production from its U.S. oilfields.
Chevron stock comes with a 3.15% dividend. Credit Suisse’s $202 target price is well above the $188.04 consensus target and Thursday’s close at $181.13.
ConocoPhillips
This is another large-cap company that offers strong value for investors. ConocoPhillips (NYSE: COP) explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids (NGLs) worldwide.
Conoco’s portfolio includes resourceich North American tight oil and oil sands assets; lowerisk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects.
Many Wall Street analysts feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford with visibility on future growth from a sizable position in the Permian Basin.
The company posted a profit of $3.55 per share. Earnings, adjusted for nonecurring costs, came to $3.60 per share, which surpassed Wall Street expectations for of $3.41 per share.
Investors receive a 3.11% dividend. Bank of America Securities has a Wall Street high price target of $140. The consensus target for ConocoPhillips stock is $129.94, and shares closed almost 6% higher on Thursday at $133.82 on the strong earnings print.
Exxon Mobil
Despite the rally in oil this year, this mega-cap energy leader trades at a reasonable valuation and still offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
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