Hold Off on Chevron…Patience is Key… ($CVX)
Some stocks are ready to buy right away. Other times, its just better to wait and jump in later. This is the current case with Chevron. Hold off on this stock for awhile, until its a buy again. Isac Simon explains why you should wait.
Exploration and production
Total U.S. production volumes dipped by 17,000 barrels of oil equivalent per day (Boe/d) in the first two months of this year, when compared to the fourth quarter of 2011. The company cites the sale of its Cook Inlet assets in Alaska as the reason for the production drop. On a year-on-year basis, total production fell by a huge 50,000 Boe/d. That’s more than a 7% drop.
Internationally, overall production volumes remained the same sequentially. However, liquids production fell by 30,000 barrels per day (Bpd) and more than 6% in the first two months on a year-on-year basis (which translates to an 89,000 Bpd plunge). And the reason isn’t exactly clear. Furthermore, in the middle of March, Chevron had to shut down production from its 33,000-Bpd Frade field off the coast of Brazil after detecting a second leak following the first leak last November. This should bring down average daily production further
This one is a sleeping giant. Its generally a good stock, but just hold off to get in again. Keep this on the back burner… it will be worth it later.
Quotes taken from report by Isac Simon, Read the entire article here.
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