Chevron (CVX) Stock Gaining as Oil Prices Rise

NEW YORK (TheStreet) -- Shares of Chevron Corp. (CVX) are up by 1.48% to $101.91 in mid-afternoon trading on Wednesday, as some stocks within the oil sector get a boost from the rise in the commodity's price.

Oil prices are being driven higher by data from the Energy Information Administration which showed crude supplies declined by 6.8 million barrels last week, MarketWatch reports. Analysts polled by Platts were expecting a decline of 1.6 million barrels.

Crude oil (WTI) is gaining by 1.85% to $61.25 per barrel and Brent crude is rising by 1.20% to $65.66 per barrel this afternoon, according to the CNBC.com index.

U.S. domestic oil production increased for the same week, according to the EIA data. Total U.S production was at 9.61 million barrels per day, a growth of 24,000 barrels from the previous week.

Other oil stocks moving higher today include Marathon Oil (MRO), up by 1.35% to $27.09, Anadarko Petroleum (APC), gaining by 1.84% to $84.71, and Whiting Petroleum (WLL), rising by 2.63% to $33.96 this afternoon.

Chevron is a San Ramon, Calf.-based American multinational energy corporation that operates by exploring for, developing and producing crude oil and natural gas. The company also refines crude oil into petroleum products.

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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CVX's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 38.5%. Since the same quarter one year prior, revenues fell by 37.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 43.1% when compared to the same quarter one year ago, falling from $4,512.00 million to $2,567.00 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHEVRON CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: CVX Ratings Report

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