CVX May 2020 120.000 call

OPR - OPR Delayed price. Currency in USD
4.2400
-0.3100 (-6.81%)
As of 12:06PM EST. Market open.
Stock chart is not supported by your current browser
Previous close4.5500
Open4.1500
Bid3.9500
Ask4.3000
Strike120.00
Expiry date2020-05-15
Day's range4.1500 - 4.3500
Contract rangeN/A
Volume21
Open interest108
  • Chevron Ushers in Oil’s Era of the Sober-Major
    Bloomberg

    Chevron Ushers in Oil’s Era of the Sober-Major

    (Bloomberg Opinion) -- Along with never invading Russia or getting into a Twitter argument, we can add another golden rule — this one specifically for U.S. oil majors: Never buy a shale-gas business.Chevron Corp.’s $10-11 billion impairment, announced late Tuesday, relates mostly to the Appalachian gas assets it picked up in 2011’s $4.9 billion acquisition of Atlas Energy Inc. Back then, the Permian basin was not a regular topic on the business channels, nor was it a central pillar of Chevron’s spending plans. But now it is, and simultaneously plowing billions into a Permian oil business that spits out gas essentially for free while running a dry-gas business in the Marcellus shale is like flooring it with the parking brake on.Chevron joins the ranks of Exxon Mobil Corp. — which paid $35 billion for XTO Energy Inc. less than a year before the Atlas deal and has been haunted by it ever since — and ConocoPhillips, which bought Rockies gas producer Burlington Resources Inc. way back in 2006 for $36 billion and then wrote most of that off in 2008.But there is far more to this than just mistimed forays into the graveyard of optimism that is the U.S. natural gas market — and not just for Chevron.Big Oil just had a forgettable earnings season. Chevron announced cost overruns on the giant Tengiz expansion project in Kazakhstan. Exxon continued borrowing to cover its dividend. Across the pond, BP Plc and Royal Dutch Shell Plc flubbed resetting expectations on dividends and buybacks. What ties all of these together are weak returns on capital. Chevron’s problems in Kazakhstan are echoed in its impairment of another asset, the Big Foot field in the Gulf of Mexico. This is another mega-project that went awry and, in an era when producers can no longer count on an oil upswing to save the economics, is found wanting. Chevron is also ditching the Kitimat LNG project in Canada that it bought into in 2013.All this is a particularly sore spot for Chevron given its problems with Australian liquefied natural gas mega-projects earlier this decade. CEO Mike Wirth’s decision to clear the decks seems intended in part to signal that, unlike the experience of his predecessor with Australian LNG development, he will drop big assets that don’t make the cut financially.Discovering, financing and developing mega-projects is why the supermajors were created at the end of the 1990s. Today, when investors are interested at all, they’re leery of capital outlays, aware the outlook for oil and gas markets is challenged in fundamental ways. So tying up money in big, risky, multi-year ventures is a good way to crush your stock price.Wirth isn’t abandoning conventional development; Big Foot aside, the Gulf Of Mexico has several new projects in the pipeline, for example. But to offset the drag on returns from the extra spending at Tengiz, he must streamline the rest of the portfolio. This is the story of the sector writ large. “Too much capital is chasing too few opportunities,” as Doug Terreson of Evercore ISI puts it. Conoco, which remade itself radically after the Burlington debacle, set the tone with its recent analyst day, emphasizing the need to get the industry’s long-standing spending habits under control and focus on returns to win back investors who are free to put their money into other sectors. Chevron’s write-offs and shareholder payouts (38% of cash from operations over the past 12 months) are of a piece with this. While the company has laid out guidance for production to grow by 3% to 4% a year, that is very much subject to the returns on offer. Capital intensity — as in, shrinking it — is what counts.Chevron’s move throws the spotlight especially on big rival Exxon. While Exxon has taken some impairment against its U.S. gas assets, that represented a small fraction of the XTO purchase. Exxon also sticks out right now for its giant capex budget (bigger than Chevron’s by more than half), leaving no room for buybacks or even to fully cover its dividend.In the first decade of the supermajors, when peak oil supply was a thing, big projects with big budgets to match were something to boast about. As the second decade draws to an end, only the leanest operators will survive. Chevron won’t be the last oil major to rip off the band-aid, just as we haven’t yet seen the full extent of the inevitable restructurings and consolidation among the smaller E&P companies. On this front, there’s another golden rule: Better to get it done sooner rather than later. To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • November Core CPI Data Meets Expectation
    Zacks

    November Core CPI Data Meets Expectation

    November Core CPI Data Meets Expectation.

  • November CPI +0.3%, Core +0.2%; Plus Fed News
    Zacks

    November CPI +0.3%, Core +0.2%; Plus Fed News

    An inflation rate of 2.1% will send no one running for the hills; we might even look at these figures as somewhat "Goldilocks" \-- not too hot, not too cold.

  • Zacks

    Stock Market News for Dec 11, 2019

    U.S. stocks closed lower on Tuesday amid investors??? concern over a partial trade deal as the dateline for fresh U.S. tariff on China will end by this week end.

  • Chevron to Take $11 Billion Writedown Amid Weak Gas Prices
    Bloomberg

    Chevron to Take $11 Billion Writedown Amid Weak Gas Prices

    (Bloomberg) -- Chevron Corp. expects to write down as much as $11 billion in the fourth quarter, more than half of it from its Appalachia natural gas assets after a slump in prices.The U.S. oil major is considering the sale of shale-gas holdings, according to a statement Tuesday. The company said separately it intends to exit its stake in the Kitimat liquefied natural gas project in Canada. And Chevron also plans to keep its 2020 capital budget at $20 billion, the third consecutive year it hasn’t boosted spending.The company’s actions come from a chief executive officer, Mike Wirth, whose mantra has been capital discipline. Wirth earlier this year earned $1 billion for the company by walking away from a bidding war for Anadarko Petroleum Corp. San Ramon, California-based Chevron is the best performer among the five Western oil majors this year, but it has faced mounting costs at its Tengiz project in Kazakhstan.“The Appalachia writedown should be baked in, but the others are incrementally negative” for the stock, said Muhammed Ghulam, a Houston-based analyst at Raymond James & Associates. “I would expect most companies to have to write down gas assets this year.”Chevron follows Schlumberger Ltd. and Repsol SA in ascribing a lower value to their assets at a time when the growing adoption of cleaner energy stokes speculation that demand for fossil fuels may peak in a few years, while supplies keep rising. The oil-services giant posted a $12.7 billion writedown in October, while the Spanish producer took $5.3 billion off its balance sheet last week.Chevron’s shares dropped 0.5% to $117.35 at 8:22 a.m. in pre-market trading in New York. They are up about 8% for the year.The gas glut is particularly pronounced in North America where shale production is flooding local markets. Wirth said his decision to walk away from certain gas assets illustrates the company’s discipline in protecting shareholder funds.“The best use of our capital is investing in our most advantaged assets,” Wirth said in the statement. “With capital discipline and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term.”Wirth has made crude production from the Permian Basin a centerpiece of his global strategy, with a budget of $4 billion for the shale play next year. The giant Tengiz joint venture in the Caspian Sea, whose total cost has surged to about $45 billion, will receive $3.75 billion from Chevron in 2020.What Bloomberg Intelligence Says“Tengiz project overruns raised questions about Chevron’s commitment to capital discipline, but plans to shelve or divest Appalachia and Kitimat LNG show the company will target returns over resources.”\--Fernando Valle, analyst\--Click here to read the researchU.S. natural gas futures prices have slumped this year amid a supply glut, and are now averaging about $2.54 per million British thermal units. If it finishes the year at that level, it’ll be the lowest average price since 1999.The move to write down Appalachian gas is likely to put pressure on other producers in the region to do the same. Newly built gas export terminals along the U.S. Gulf Coast have so far failed to absorb the excess supply.Chevron held more than 750,000 net acres in the Marcellus and Utica shale formations, which stretch from West Virginia to Pennsylvania and Ohio, according to a 2017 fact sheet on its website. The writedown also encompasses the Big Foot oil platform in the U.S. Gulf of Mexico, which began producing last year.(Updates with Kitimat stake sale plan in second paragraph)To contact the reporter on this story: Kevin Crowley in Houston at kcrowley1@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Where Will Chevron (CVX) Spend the Bulk of Its 2020 Capex?
    Zacks

    Where Will Chevron (CVX) Spend the Bulk of Its 2020 Capex?

    Chevron's (CVX) projected organic capex worth $20 billion for 2020 will see no change for the third consecutive year while maintaining its capital discipline through the cycle.

  • Investing.com

    Stocks - Gamestop, American Eagle, Chevron Slump Premarket

    Investing.com -- Stocks in focus in premarket trade on Wednesday, 11th December.

  • Investing.com

    Top 5 Things to Know in the Market on Wednesday

    Investing.com -- The Fed will likely leave interest rates unchanged and keep its forward guidance neutral at the end of its two-day policy meeting. The European Union is set to present plans to make Europe climate-neutral by 2050, with far-reaching consequences for polluting industries both at home and abroad. Saudi Aramco (SE:2222) gets off to a flying start on the Riyadh exchange with a little help from its local friends, but Chevron (NYSE:CVX) is taking a massive hit on its oil and gas assets. Here's what you need to know in financial markets on Wednesday, 11th December.

  • Chevron expects $10 billion-$11 billion charge in fourth quarter; plans asset sales
    Reuters

    Chevron expects $10 billion-$11 billion charge in fourth quarter; plans asset sales

    The second-largest U.S. oil company, which plans to hold its 2020 spending program flat at $20 billion, said it may sell shale gas properties and its stake in a Canadian liquefied natural gas project. San Ramon, California-based Chevron and other energy companies have pledged to restrain spending after the collapse in oil prices earlier this decade forced many to borrow to cover the costs of long-term projects. Chevron said it expected writedowns this quarter related to a deepwater Gulf of Mexico project, which needs higher oil prices to churn a profit, and shale gas in Appalachia, which has suffered from low natural gas prices.

  • Business Wire

    Chevron Announces $20 Billion Capital and Exploratory Budget for 2020

    Chevron Corporation today announced a 2020 organic capital and exploratory spending program of $20 billion. The 2020 budget supports a robust portfolio of upstream and downstream investments, highlighted by Chevron’s world-class Permian Basin position, the company’s major capital project at TCO in Kazakhstan, and an advantaged queue of deepwater opportunities in the Gulf of Mexico.

  • Oilprice.com

    The Best And Worst Oil Majors Of 2019

    2019 has been a tough year for oil companies, but some of the oil majors have fared surprisingly well due to their economies of scale advantage and low breakeven prices per barrel

  • It's Official: Saudi Aramco to Become the Biggest IPO Ever
    Zacks

    It's Official: Saudi Aramco to Become the Biggest IPO Ever

    Saudi Aramco, which is set to trade on the Riyadh stock market, beat the previous record held by Chinese e-commerce behemoth Alibaba.

  • Should Chevron Corporation (NYSE:CVX) Focus On Improving This Fundamental Metric?
    Simply Wall St.

    Should Chevron Corporation (NYSE:CVX) Focus On Improving This Fundamental Metric?

    One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...

  • Oilprice.com

    Six Oil Stocks To Survive The Shale Bust

    The U.S. shale patch is showing serious signs of financial distress, but a few companies continue to drill profitably for oil & gas in America’s most prolific shale basins

  • Reuters - UK Focus

    Oil companies press Mexican president to resume suspended auctions

    Big oil companies operating in Mexico have launched a drive to convince leftist President Andres Manuel Lopez Obrador to resume auctions of oil and gas contracts he has branded a failure in reviving the industry. Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell Plc, among other firms in Mexico's Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts. "We've been complying (with contractual obligations), and by any metric you look at, we've been successful," Amexhi President Alberto de la Fuente told reporters this week.

  • Bloomberg

    There’s Still Time for Golf Amid Venezuela Oil Industry Collapse

    (Bloomberg) -- Despite economic chaos and political paralysis, Venezuela’s beleaguered oil industry has still found time for one long-standing tradition: The charity golf tournament.The country’s oil chamber, an industry group, and Chevron Corp., one of just a handful of American companies still allowed to do business in the South American country, are sponsoring the Dec. 7 event.The Copa Chevron will take place at Maracaibo Country Club in the oil-rich state of Zulia, Venezuela’s Texas. According to a notice for the event, several prizes are up for grabs -- in dollars, rather than the heavily devalued domestic currency -- including $200 for first place (the equivalent of about 7.7 million bolivars) and $50 for the longest drive. The entrance fee is $15.The tournament has been a social fixture for decades. Golf is also an established feature of life for many oil executives and expats in Venezuela. U.S. oil companies built country clubs throughout the country since the 1930s. The 18-hole, 6,812-yard course at Maracaibo Country Club was constructed in 1958, according to Golf Advisor website.“Besides the pool at the club, there was nothing left to do but play golf or baseball in remote oil-producing areas,” recalls Alexis Medina, a Venezuelan who now runs Advanced Logging & Explosives, an oil services firm.Golf in Venezuela has survived being labeled bourgeois by former President Hugo Chavez. The Venezuelan Golf Federation’s website lists a full calendar of youth and amateur tournaments.Chevron has sponsored its namesake tournament for the past three years. Proceeds from the Dec. 7 contest will go to the Pediatric Hospital in Maracaibo, company spokesman Ray Fohr said. “We remain focused on our base business operations and supporting the more than 8,800 people who work with us and their families,” he said.\--With assistance from Kevin Crowley.To contact the reporter on this story: Fabiola Zerpa in Caracas Office at fzerpa@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Oil Price Gains 4.2% in a Day: What's Behind the Rally?
    Zacks

    Oil Price Gains 4.2% in a Day: What's Behind the Rally?

    EIA's Weekly Petroleum Status Report shows a much bigger-than-expected drawdown in oil inventories, ending several consecutive weeks of builds.

  • Reuters

    Oil companies swap stakes in Mexico as government holds off on auctions

    With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own. The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's flagship energy reform that has seen no new licensing rounds since 2018. Companies selling stakes include large foreign producers that were awarded blocks in previous rounds such as China's CNOOC and Germany's Wintershall Dea.

  • A Fund Manager Is Using Big Plastic’s Money to Stop Ocean Trash
    Bloomberg

    A Fund Manager Is Using Big Plastic’s Money to Stop Ocean Trash

    (Bloomberg) -- For some money managers, closing a $100 million fund would be akin to reeling in a big fish. For Rob Kaplan, it’s just the bait.Kaplan, a former Walmart Inc. executive, plans to invest the $106 million he’s raised from some of the world’s biggest plastics makers in companies that promise to prevent trash from ending up in the oceans.Targets include waste and chemicals recycling firms, and Kaplan hopes the private equity-style investments will one day yield double-digit returns -- the sort that could entice heavyweight institutional investors and pension funds to plow in money of their own.“The impact we need to create takes many billions of dollars, not just the $100 million we’ve been able to raise,” Kaplan said in an interview in Singapore, where his Circulate Capital fund is based. “The only way we’re going to be able to do that is if we can prove an investment strategy that’s successful from a returns perspective.”It’s estimated about 8 million tons of plastic trash streams into the world’s oceans every year, costing fisheries and marine tourism around $2 billion. Just cutting that garbage flow in half would require an additional investment of $5 billion a year, Ocean Conservancy and McKinsey & Co. analysts say.Circulate Capital’s investors either make plastics (Dow Inc. and Chevron Phillips Chemical Co.) or sell consumer products that are packaged in them (PepsiCo Inc., Coca-Cola Co., Unilever NV, Procter & Gamble Co. and Danone SA).India, IndonesiaCirculate charges fund management and performance fees, but Kaplan declined to detail what these were.His pitch to his corporate investors was simple -- they could donate $100 million and barely make a splash, or help prove that investing in solutions is genuinely profitable. The fund plans to make 30 or 40 investments of about $2 million to $10 million each, with a focus on India and Indonesia. It’s aiming for mid-single-digit returns at the outset.The U.S. Agency for International Development is also supporting the fund, agreeing to cover 50% of loan losses up to $35 million, allowing it to take some some higher-risk bets, Kaplan said.Sustainability and impact investing is catching on as investors seek to do good and make money at the same time. Singapore’s Temasek Holdings Pte has helped establish an Asia-focused fund dedicated to impact investing while private equity giants such as KKR & Co. are also getting in on the act.Kaplan used to be director of sustainability at Walmart. He left to work at Closed Loop Partners, an investment fund that focuses on environmentally friendly supply chains, and subsequently founded Circulate Capital.(Updates with USAID support in 9th paragraph.)To contact the reporters on this story: Dan Murtaugh in Singapore at dmurtaugh@bloomberg.net;David Ramli in Singapore at dramli1@bloomberg.netTo contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, ;Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Russell WardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Oil & Gas Stock Roundup: Valaris, Kosmos Energy in the News as Market Waits on OPEC
    Zacks

    Oil & Gas Stock Roundup: Valaris, Kosmos Energy in the News as Market Waits on OPEC

    The U.S. crude benchmark finished sharply lower last week amid speculation that OPEC and its allies are deeply divided over Saudi Arabia's push for deeper production cuts.

  • Company News for Dec 2, 2019
    Zacks

    Company News for Dec 2, 2019

    Companies In The News Are: TECD, X, CVX, FB

  • Why Is Chevron (CVX) Up 0.9% Since Last Earnings Report?
    Zacks

    Why Is Chevron (CVX) Up 0.9% Since Last Earnings Report?

    Chevron (CVX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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