Chevron (CVX) Stock Retreating on Nigerian Pipeline Attacks, Tengiz Expansion
NEW YORK (TheStreet) -- Chevron (CVX) - Get Report stock is down 0.66% to $103.46 this morning as the company faces militant attacks in Nigeria and expanding projects in Kazakhstan.
The Nigerian militant group Delta Avengers have blown up a Chevron well and oil pipelines in the Nigerian city of Warri as of late last night, Reuters reports.
The group wants a greater share of oil wealth to go to the Niger Delta region, the impoverished area where most of the country's crude oil is produced.
Petroleum ministry sources said that the group had agreed to a month-long truce in late June 2016 after pushing production to 30-year lows due to several weeks of attacks.
Also, Chevron approved a $36.8 billion expansion in the Tengiz oil field in Kazakhstan this morning. The first oil from the expansion is slated for 2022, and will increase crude production in the field by 260,000 barrels per day.
The expansion was put on hiatus last year amidst dropping oil prices.
Recently oil companies around the world have cut back $1 trillion from expansions as oil prices dropped 75% from June 2014 to a 12-year low in January 2016.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: CVX
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.