American multinational energy giant Chevron is all set to buy Anadarko Petroleum Corp. in a $33 billion cash and stock deal.
The deal is not just in line with the company’s strategy to expand its shale-drilling ambitions and places it just behind Exxon Mobil Corp. as one of the world’s largest publicly traded producers of oil and gas. But, it also helps the second biggest U.S. energy company to expand operations in U.S. shale oil and gas production, offshore drilling and liquefied natural gas exports business.
According to the terms of the deal, Anadarko’s shares has been valued at $65 per share – a 37% premium to its Thursday close and Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. Further, Chevron will adopt $15 billion of Anadarko’s debt.
With this deal Chevron not only gets relatively cheap large-scale production to take their Permian position a level up just behind Exxon (XOM), but it also gives them access to West and East African reserves. This in turn can help Chevron roll their Australian LNG development capability into Mozambique.
Representing the 11th biggest deal for an energy and power company, it’s expected to create synergies worth $1 billion for Chevron.
Chevron had hit 16.2 billion barrels of oil equivalent (BOE) in 2018, while Anadarko clocked a production count of 4 billion BOE from the Permian region in western Texas and eastern New Mexico in 2018.
CVX's Aroon Indicator triggered a bullish signal on March 04, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 272 similar instances where the Aroon Indicator showed a similar pattern. In of the 272 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on March 13, 2024. You may want to consider a long position or call options on CVX as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CVX just turned positive on March 14, 2024. Looking at past instances where CVX's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
CVX moved above its 50-day moving average on March 07, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVX advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CVX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CVX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.820) is normal, around the industry mean (1.194). P/E Ratio (13.886) is within average values for comparable stocks, (23.288). Projected Growth (PEG Ratio) (4.459) is also within normal values, averaging (4.381). Dividend Yield (0.039) settles around the average of (0.105) among similar stocks. P/S Ratio (1.506) is also within normal values, averaging (0.941).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which explores and refines oil and natural gas
Industry IntegratedOil