Barclays maintains an 'Overweight' on Chevron (CVX); Update on Frade Field Seep
Tweet
Share
E-mailGet Alerts CVX Hot Sheet
Price: $168.71 +1.46%
Rating Summary:
24 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 25
Rating Summary:
24 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 25
Join SI Premium – FREE
Barclays maintains an 'Overweight' on Chevron (NYSE: CVX) price target of $138.00.
Barclays analyst says, "CVX shares fell 2.7% yesterday (11/15) compared to the North American Integrated Oil average and XOI down 0.6% and 0.3%, respectively, and the S&P500 up 0.5%. We believe CVX shares reacted to an unsubstantiated account that the oil seep in the vicinity of a Frade field appraisal well was larger than the 200-300 b/d initially estimated by Brazil's National Agency of Petroleum (ANP)...In light of ANP's estimate that the spill could have been 200-300 b/d and other reports suggesting upwards of 10x that amount (Business Insider, 11/15, Chevron's Oil Spill Off Brazil Could Be 10 Times Bigger Than Official Estimates), CVX issued a press release yesterday reiterating the original 400-650 barrel surface sheen estimate.
"Recent oil spill incidents in Brazil suggest the maximum fine imposable by the ANP at R$50 million, or US$28 million (based on current exchange rate of
$R1.7723/USD). The federal government can also impose additional fines, which in the most severe case of a Petrobras (NYSE: PBR) refinery spill brought total fines to $4,700 per barrel spilled. CVX is 51.7% owner and operator of the Frade field with PBR and Frade Japao at 30% and 18.3%, respectively."
For an analyst ratings summary and ratings history on Chevron click here. For more ratings news on Chevron click here.
Shares of Chevron closed at $103.27 yesterday.
Barclays analyst says, "CVX shares fell 2.7% yesterday (11/15) compared to the North American Integrated Oil average and XOI down 0.6% and 0.3%, respectively, and the S&P500 up 0.5%. We believe CVX shares reacted to an unsubstantiated account that the oil seep in the vicinity of a Frade field appraisal well was larger than the 200-300 b/d initially estimated by Brazil's National Agency of Petroleum (ANP)...In light of ANP's estimate that the spill could have been 200-300 b/d and other reports suggesting upwards of 10x that amount (Business Insider, 11/15, Chevron's Oil Spill Off Brazil Could Be 10 Times Bigger Than Official Estimates), CVX issued a press release yesterday reiterating the original 400-650 barrel surface sheen estimate.
"Recent oil spill incidents in Brazil suggest the maximum fine imposable by the ANP at R$50 million, or US$28 million (based on current exchange rate of
$R1.7723/USD). The federal government can also impose additional fines, which in the most severe case of a Petrobras (NYSE: PBR) refinery spill brought total fines to $4,700 per barrel spilled. CVX is 51.7% owner and operator of the Frade field with PBR and Frade Japao at 30% and 18.3%, respectively."
For an analyst ratings summary and ratings history on Chevron click here. For more ratings news on Chevron click here.
Shares of Chevron closed at $103.27 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- 7 stocks impacted by the 'new normal' in the luxury goods market
- Keyence (6861:JP) (KYCCF) PT Lowered to JPY67,000 at JPMorgan
- CapCom Co Ltd. (9697:JP) (CCOEY) PT Lowered to JPY6,100 at CLSA
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
