Chevron (CVX), Iwatani to Co-develop 30 Hydrogen Stations

San Ramon, CA-based oil major Chevron Corporation CVX declared that it signed an agreement with the Japanese industrial gas company, Iwatani, to jointly develop and erect 30 hydrogen-fueling sites in California by 2026 as part of Chevron’s efforts to lower carbon emissions in the transportation sector.

Per the terms of the deal, Chevron proposes to fund the construction of sites, which are expected to be situated at Chevron-branded retail locations across California. To begin with, the stations will fuel light-duty vehicles but over the long term, these will retain the flexibility to service heavy-duty vehicles. Meanwhile, Iwatani will be responsible for operating and maintaining the hydrogen-fueling sites supplying hydrogen and providing transportation logistics services. Moreover, CVX intends to supply some of the sites with the surplus hydrogen production capacity from its Richmond Refinery and future hydrogen output from pilot projects in Northern California.

President of Americas Fuels & Lubricants for Chevron, Andy Walz, said that his company believes that hydrogen has the ability to help lower carbon emissions of the transportation sector and other industries as well. He added that Chevron is excited to partner with Iwatani to further the whole hydrogen transportation value chain from production to consumer purchase with a view to help customers reduce their lifecycle transportation carbon intensities.

Joseph Cappello, Chairman and CEO of Iwatani Corporation of America, mentioned that the alliance between Iwatani and Chevron validates the two companies’ shared vision and commitment to supporting the decarbonization of transportation.

Chevron is one of the largest publicly traded oil and gas companies in the world with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent. It currently churns out oil and natural gas at a 59/41 ratio. As of the end of 2021, the company had proved reserves of approximately 12.4 billion barrels of oil equivalent.

Chevron currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space that warrant a look include Centennial Resource Development CDEV, ExxonMobil XOM and Valero Energy VLO, each sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.32 per share, which is an increase of approximately 91.3% from the projected year-ago earnings of 69 cents.

Centennial stock has rallied 116.3% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share has been revised from $1.11 to $1.32, up about 18.1% in the past 60 days.

ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has increased around 39.1% in a year.

The Zacks Consensus Estimate for XOM’s 2022 earnings is projected at $6.89 per share, which is an increase of about 28% from the projected year-ago earnings of $5.38 per share.

The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $7.10 per share, up about 152.7% from the projected year-ago earnings of $2.81.

Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 75.7%. VLO is valued at around $35 billion.

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