Chevron Positioned to Benefit from Venezuelan Rebuild
"So I want to start with Chevron. Their shares have been up as much as 10%. It's the only American oil major currently operating Venezuela that was under a special U.S. permission. So it's really best positioned to immediately benefit from greater U.S. access. They produce about 20% of the country's oil under a sanctions waiver. They ship to the crude to U.S. refineries."
The speaker highlights Chevron as uniquely positioned among U.S. oil majors to benefit from the upcoming spending to rebuild Venezuela's energy infrastructure, given its special sanction waiver and significant operational presence in the country.
Chevron Positioned to Benefit from Venezuelan Rebuild
"I want to start with Chevron. Their shares have been up as much as 10%. Um, it's the only American oil major currently operating in Venezuela that was under a special US permission. So, it's really best positioned to to immediately benefit from greater US access. They produce about 20% of the country's oil under a sanctions waiver. They ship to the crude to US refineries."
The speaker highlights Chevron's unique position in Venezuela, emphasizing its ability to benefit immediately from US efforts to rebuild Venezuelan energy infrastructure due to a special US permission. The company produces 20% of Venezuela's oil under a sanctions waiver and is thus positioned for near-term upside.
Buy Chevron at Low Oil Prices
"Beginning with stock number one, which is going to be Chevron, stock ticker CVX. And when it comes to Chevron, this is a company that has endured lower oil prices and it's really weighed on the stock over the course of the past 12 months. But that has me thinking more about opportunity. As you can see here on this chart, the price of oil has come under fire with the current price of crude under $60 per barrel around the lowest levels of the year. But one conflict that we see and prices spike is going to be a benefit to Chevron moving forward. You don't want to buy shares of Chevron when oil prices are sky-high. You want to buy Chevron when those oil prices are low."
The speaker highlights Chevron's attractive fundamentals amid low oil prices and suggests an opportunity to accumulate shares when oil is trading at its lower levels. The commentary emphasizes the company's strong free cash flow generation and recent investments that are expected to pay off.