By Sarfaraz A. Khan and Gohar Yousuf
One of the world’s leading integrated energy companies, Chevron (CVX)
has been spending enormous amounts of cash on some of its biggest
projects to ramp up its production of oil and gas. As a result, the
company has not returned as much cash to shareholders, through dividends
and buybacks, as they would have liked. Following the global financial
crisis, investors have favored companies with attractive dividends and
buyback programs, as opposed to companies like Chevron, who invest in
their long term future. This is one of the reasons why this oil giant’s
shares have remained under pressure, despite having attractive long term
growth prospects.
Going Over the Budget
In its most recent quarterly results, Chevron reported a 25.6% year-over-year increase in capital and exploration expenses to $10.59 billion. A significant portion of this increase was attributed to the company’s operations in the international markets, where its spending grew by 28% to $7.84 billion. In the U.S, Chevron spent around $2.7 billion, showing an increase of 18% from the same quarter last year. Overall, in the first nine months of the current year, Chevron has... read full article at GuruFocus
Going Over the Budget
In its most recent quarterly results, Chevron reported a 25.6% year-over-year increase in capital and exploration expenses to $10.59 billion. A significant portion of this increase was attributed to the company’s operations in the international markets, where its spending grew by 28% to $7.84 billion. In the U.S, Chevron spent around $2.7 billion, showing an increase of 18% from the same quarter last year. Overall, in the first nine months of the current year, Chevron has... read full article at GuruFocus
