U.S. energy behemoth
) announced that it has entered into a deal with Argentina-based
integrated oil firm YPF SA (YPF).
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Per the agreement, both the companies have decided to invest
extra $1.6 billion to sustain the exploration and advancement of
the shale oil and gas properties in Vaca Muerta formation. Both
the companies are likely to drill roughly 170 wells in the Vaca
Muerta's 96,000-acre of land, in 2014. Vaca Muerta − situated in
Argentina − has a rich deposit of shale oil and natural
Included in the deal, Chevron will also explore 49,400 acres in
the Narambuena region. Narambuena is located in the Vaca Muerta
Chevron believes that the drilling and exploration program will
help the company drive production significantly in the long run.
San Ramon, California-based Chevron is one of the largest
publicly traded oil and gas companies in the world, based on
proved reserves. It is engaged in oil and gas exploration and
production, refining and marketing of petroleum products,
manufacturing of chemicals, and other energy-related businesses.
The company divides its operations into two main segments:
Upstream and Downstream.
However, Chevron expects to post lower first-quarter 2014
earnings than the previous quarter, owing to substantial currency
conversion expenses along with asset impairment charges.
As such, Chevron retains a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Range Resources Corp.
Helmerich & Payne Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).