Chevron Texaco (CVX)

Stockchase Research Editor: Michael O'Reilly

We reiterate CVX, one of the world's largest integrated energy companies, as a TOP PICK.  With WTI prices high enough to generate impressive free cash flow, the company intends to focus on its primary asset in the Permian basin, where economics are well known.  This allows the company to maintain a ROE over 20% and to pay a good dividend backed by a payout ratio under one-third of cash flow.  We continue to recommend a tight stop at $150, looking to achieve $188 -- upside potential of 18%.  Yield 3.6%  

(Analysts’ price target is $188.13)

Stockchase Research Editor: Michael O'Reilly

We reiterate CVX, one of the world's largest fully integrated oil and gas companies as a TOP PICK.  The company continues to generate enormous free cash flow, allowing the company to aggressively retire debt and buy back shares.  It trades under 10x earnings and under 2x book value.  It pays a good dividend backed by a payout ratio under 1/3 of cash flow.  We continue to recommend a stop at $150, looking to achieve $189 -- upside potential of 19%.  Yield 3.6%

Stockchase Research Editor: Michael O’Reilly

As of end 2022, CVX was Warren Buffet’s third largest holding - $30 billion.  The company is generating incredible cash flow as it benefits from its integrated portfolio from production to retail distribution.  It trades at 10x earnings and under 2x book value and supports a 23% ROE.  Cash reserves are growing while debt is retired and shares bought back.  It pays a good dividend, backed by payout ratio under 35% of cash flow.  We recommend placing a stop loss at $150, looking to achieve $193 — upside potential over 19%.  Yield 3.58%

(Analysts’ price target is $192.96)

Chevron Corporation is one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company's operations. Chevron is based in San Ramon, California. Social media mentions are up 90% in the past 24h.