U.S. energy behemoth
) is almost through with repair work at its Richmond, California,
refinery crude unit, according to people familiar with the
situation. The integrated major could bring the facility online
as early as February, but for regulatory hurdles.
CHEVRON CORP (CVX): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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Chevron suspended operation at its No. 4 Crude Unit of its
Richmond refinery subsequent to the outbreak of a massive fire on
August 6, 2012. The devastating fire with thick smoke blowing
from the unit sent more than 15,000 people to emergency rooms,
while some 200 people sought medical help due to respiratory
problems. The 240,000 barrel a day unit, which accounts for
one-eighth of the total refinery capacity of California State,
has been operating at 50% capacity since the date of the
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 three main segments:
Exploration and Production; Manufacturing, Products, and
Transportation; and Other Businesses.
Chevron shares currently retain a Zacks #3 Rank, which translates
into a short-term 'Hold' rating. We are also maintaining our
long-term 'Neutral' recommendation on the stock.
Chevron's current oil and gas development project pipeline is
among the best in the industry, boasting large and multi-year
projects. Additionally, the second-largest U.S. oil company by
market value after
) possesses one of the healthiest balance sheets among its peers,
which helps it to capitalize on strategic investment
However, due to its integrated nature, Chevron is particularly
susceptible to the 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
forward. Considering these factors, we see the stock performing
in line with the broader market.