Despite recent underperformance, Chevron’s shares offer great value

  • Chevron shares look inexpensive
  • Chevron is one of the best-run big energy companies in the world
  • Chevron’s underperformance in 2023 was deserved
  • Despite recent weakness in oil and gas prices, Chevron’s shares still look inexpensive
  • Chevron trades at 10.7 times projected 2024 earnings and yields 4.2%
  • After the Hess deal closes, Chevron plans to buy back $20 billion of stock annually
  • Chevron has a lower-risk growth profile than peers
  • Chevron trades at a 15% discount to its average cash-flow multiple
  • Chevron should have a total yield of about 12% after the Hess deal closes

Chevron shares have been trading at a discount, making them an attractive investment option. Despite underperforming in 2023, Chevron remains one of the best-run big energy companies globally. The company faced challenges with production shortfalls in its oil fields and investors were skeptical about its expensive acquisition of Hess. However, Chevron’s shares still look inexpensive, even with the recent weakness in oil and gas prices. With a projected 2024 earnings multiple of 10.7 and a dividend yield of 4.2%, Chevron offers a compelling valuation. Additionally, after the Hess deal closes, Chevron plans to buy back $20 billion of stock annually, further enhancing shareholder value. Analysts believe that Chevron has a lower-risk growth profile compared to its peers and trades at a 15% discount to its average cash-flow multiple. After the Hess deal closes, Chevron is expected to have a total yield of about 12%. Overall, Chevron presents an attractive investment opportunity for those looking for a well-run energy company with cheap shares.

Public Companies: Chevron (CVX), Exxon Mobil (XOM), Hess (HES)
Private Companies:
Key People: Greg Buckley (Analyst at Adams Funds)

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Factuality Level: 7
Justification: The article provides some relevant information about Chevron’s performance and stock price, as well as the reasons behind its underperformance in 2023. It also mentions the company’s plans for dividend increase and stock buybacks. However, the article lacks in-depth analysis and supporting data to fully evaluate the claims made about Chevron’s valuation and growth prospects. Additionally, the article includes some unnecessary background information and a promotional message about text-to-speech technology.

Noise Level: 3
Justification: The article provides a brief analysis of Chevron’s performance in 2023 and mentions some reasons for its underperformance. It also mentions the company’s valuation and plans for dividend increase and stock buybacks. However, the article lacks in-depth analysis, data, and evidence to support its claims. It also does not provide actionable insights or explore the consequences of Chevron’s decisions on stakeholders. Overall, the article contains some relevant information but lacks depth and rigor.

Financial Relevance: Yes
Financial Markets Impacted: Chevron

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Chevron’s performance and valuation, indicating its relevance to financial topics. However, there is no mention of any extreme events or their impact.

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