Chevron

Chevron Says It Will Buy Hess Corp. in All-stock Deal Worth $53 Billion.

Chevron: In January Expect to Recommend Increase to 1Q Dividend of 8% to $1.63.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: CVX is buying upstream peer Hess Corporation (HES 163 ***) in an all-stock deal valued at about $58 billion. Per the deal, each share of HES will be exchanged for 1.025 shares of CVX stock. We estimate the deal at an enterprise value to 2024 EBITDA multiple of 8.1x, in line with HES’s five-year historical forward average, and only 1% above HES’s current multiple. The deal is expected to close in early 2024, and CVX views it as accretive by 2025. We like the deal for CVX both from a strategic and valuation standpoint. Strategically, CVX adds more oil exposure in long-cycle plays (Guyana), which complements CVX’s expansion in the short-cycle Permian Basin. On valuation, we are surprised at the minimal premium needed, and the lack of

Morgan Stanley analyst Devin McDermott maintains Chevron (NYSE:CVX) with a Equal-Weight and lowers the price target from $203 to $201.

Chevron (NYSE:CVX) Q2 Adj. EPS $3.08 Misses $3.28 Estimate, Sales $48.90B Beat $48.80B Estimate.

Chevron (NYSE:CVX) reported Q2 adjusted earnings Friday of $3.08 per diluted share, down from $5.82 a year earlier. Analysts polled by Capital IQ expected $2.98. Revenue for the quarter ended June 30 was $48.90 billion compared with $68.76 billion a year earlier. Analysts surveyed by Capital IQ estimated $48.00 billion. Chevron said its board declared a quarterly dividend of $1.51 per share, payable Sept. 11 to shareholders on record as of Aug. 18.