NEW YORK (TheStreet) -- Shares of Chevron (CVX) are falling 1.10% to $100.47 after three more tendons, which links the company's Big Foot deepwater oil project to the Gulf of Mexico seabed, sunk, causing concerns that this would affect the project's start date, Reuters reported.
Early last week, the oil company said that six tendons had sunk, driving the total number up to nine, after this weekend.
While no oil leaked at the site, the timeline of the project's start date has been pushed back indefinitely, Reuters said. The project was expected to start in late 2015.
The California-based company set up a command center in Houston to respond to the situation and stated that a U.S. Coast Guard representative was on the site, Reuters added.
Additionally, lower oil prices are contributing to declining shares. Crude Oil (WTI) is lower by 1.51% to $58.24 per barrel and Brent crude is lower by 0.90% to $62.74 according to the CNBC.com index.
Separately, 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 reasonable 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."