Chevron Corporation (CVX), an American multinational energy corporation, has recently agreed to sell its 41.1% stake in Myanmar’s Yadana gas field to Canada's MTI Energy through its subsidiary, Et Martem Holdings, according to Argus Media report. As stated by a Chevron spokesperson, the deal's value and terms are both confidential.
The Yadana gas field is the largest in Myanmar and a significant source of foreign revenue for the country. It produces 770 million cubic feet of gas per day, of which 70% is exported to Thailand and 30% is used domestically.
Justice for Myanmar, a human-rights group, has called for Canadian and UK sanctions on Myanmar Oil & Gas Enterprise ("MOGE"), which owns a 15% stake in Yadana, following the sale. The group has accused MOGE of being the financial backer of the military junta in Myanmar and bankrolling its ongoing war crimes and crimes against humanity.
The sale of Chevron's stake in Yadana came after TotalEnergies, a French supermajor, withdrew from Myanmar in July 2022, leaving Chevron with a larger stake of 41.1%. Chevron's equity in the gas field increased after TotalEnergies' withdrawal, as its stake was absorbed by the remaining partners, including PTTEP of Thailand and MOGE.
Chevron had always planned to sell its share in Yadana, as it believed that simply walking away from the project would have resulted in MOGE having an even larger stake and greater influence over management of the offshore gas field.
Zacks Rank and Key Picks
Chevron Corporation, a leading integrated energy company with operations worldwide, generates approximately $95 billion in annual revenue and produces over 3 million barrels of oil equivalent per day.
Currently, Chevron Corporation carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like ProPetro Holding PUMP and Energy Transfer ET both sporting a Zacks Rank #1 (Strong Buy), and NGL Energy Partners NGL holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a Forward P/E ratio of 4.47. For comparison, its industry has an average Forward P/E of 28.50, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.1 billion. Its shares have decreased by 20.1% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.7 billion. ET delivered an average earnings surprise of 16.3% for the last four quarters, and its current dividend yield is 9.49%.
For the last quarter, Energy Transfer reported earnings of 30 cents per share, which is in line with the Zacks Consensus Estimate. The 2023 Zacks Consensus Estimate for ET indicates 2.1% year-over-year earnings per unit growth.
NGL Energy Partners: NGL Energy Partners is worth approximately $219.57 million. Its shares have decreased by 12.5% in the past year. The fiscal 2023 Zacks Consensus Estimate for NGL indicates 2.1% year-over-year earnings per unit growth.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments: retail propane, wholesale supply and marketing, and midstream.
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