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Chevron (CVX) CEO Downplays Venezuela-Guyana Tension

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Chevron Corporation’s (CVX - Free Report) chief executive officer Mike Wirth expressed optimism on Monday, disregarding the likelihood of a military conflict arising from the ongoing border dispute between Venezuela and Guyana. Despite the recent exchange of hostile statements between the South American nations, Wirth said that armed conflict was unlikely.

Speaking at an event hosted by the Council on Foreign Relations in Washington, he acknowledged the hostile statements made by both Venezuela and Guyana, but remained confident that armed conflict was not the likely outcome. Instead, he highlighted the historical precedence of diplomatic solutions in resolving territorial disputes.

Wirth assured that Chevron is closely monitoring developments in the region. The company, involved in significant energy projects in both Venezuela and Guyana, recognizes the potential impact of geopolitical tensions on its operations. The CEO's comments reflect a measured outlook, acknowledging the gravity of the situation while expressing faith in diplomatic channels to find a resolution.

The border dispute between Venezuela and Guyanahas been a longstanding issue, with both nations staking claims to the Essequibo oil-rich region. Despite the current tension, Wirth's comments reflect a measured and optimistic outlook, suggesting that diplomatic efforts may prevail over military confrontation in addressing territorial disagreement.

Zacks Rank & Key Picks

Chevron currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) , Liberty Energy Inc. (LBRT - Free Report) and EOG Resources, Inc. (EOG - Free Report) . While Matador Resources sports a Zacks Rank #1 (Strong Buy), both Liberty Energy and EOG Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.

MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.

Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.

LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.

EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. 

EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.


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