The Australian arm of the integrated energy behemoth,
), received a conditional approval from the Australian
Environmental Protection Authority (EPA) to expand its Gorgon
liquefied natural gas facility.
The approval includes an additional 32 hectares of land on Barrow
Island to facilitate construction work to support the existing
project. This increases Chevron's footprint on the island to 332
hectares. However, the EPA has also stated that Chevron must
offset the negative impact that such an expansion would have on
the local wildlife.
The report submitted by the EPA is open for a public appeal for a
two-week period ending Jan 20, 2014.
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.
Chevron possesses one of the healthiest balance sheets among
peers, which helps it to capitalize on investment opportunities
with the option to make strategic acquisitions. Moreover, the
company's current oil and gas development project pipeline is
among the best in the industry, boasting large, multi-year
However, due to its integrated nature, Chevron is particularly
susceptible to downside risk from any weakness in the global
economy. We are also concerned about the company's high level of
capital spending, which may result in reduced returns going
Chevron currently holds 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 consider better-ranked energy sector stocks
Williams Companies, Inc.
Helmerich & Payne, Inc.
Athlon Energy Inc.
). All these stocks currently sport a Zacks Rank #1 (Strong
ATHLON ENERGY (ATHL): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
WILLIAMS COS (WMB): Free Stock Analysis
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