NEW YORK (TheStreet) -- Chevron (CVX) shares closed trading down 1.5% to $100.84 in trading on Monday following reports that the international oil company could pull out of a shale gas project in western Ukraine, according to a statement released by a member of Ukranian President Petro Poroshenko's cabinet.
It is likely that the company plans to pull out of an Oleska production-sharing agreement, leaving the country without any shale-gas projects, after a Chevron imposed November 18 deadline for the country to simplify its tax laws passed without a resolution.
Ukraine's energy situation has been volatile as the country's conflict with Russia has threatened its access to energy. Russia used to supply half of the country's gas before the ouster of Ukraine's pro-Russian President earlier this year led to a protracted land dispute between the two countries.
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TheStreet Ratings team rates CHEVRON CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEVRON CORP (CVX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."