While still a mammoth of a company, Chevron (CVX) makes decisions like a small entrepreneurial startup. The company has been in exploration and production of biofuels, natural gas, coal mining, oil, and geothermal energy and in business for over 133 years, but still shows that spry, youthful eagerness of a new challenger.
Playing in the same ball field as Royal Dutch Shell (RDS.A), Anadarko Petroleum (APC), BP (BP), and Valero Energy (VLO), the company is in second place behind Exxon Mobil (XOM), but gaining traction and speed. Chevron’s aggressive plays in natural gas and liquid exploration are helping the company move up the charts. While still seeking to give the best returns for investors, I see the company as taking risks that others are not willing to take, and is just one reason why I’m convinced that Chevron is still a great buy today.
Just looking at how the company invests capital for exploration is a lesson on good management. Take natural gas for example. Although the price for natural gas is still relatively low, exploration of the gas is a smart move for a future rise in price. Chevron has been picking up the pace of natural gas exploration around the world. At the Chevron-operated Wheatstone natural gas project in Australia, the company recently announced that its Australian subsidiaries have signed a non-binding Heads of Agreement with Tohoku Electric Power Company Incorporated for the delivery of liquefied natural gas [LNG].To continue reading, click here.
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