The Biden government in the United States has issued a sanctions waiver for the oil major —
Chevron
CVX
— and other energy services companies so that they have a minimal existence in the South-American country of Venezuela and keep operating in the oil-abundant nation.
The license issued by the U.S. Treasury Department allows Chevron and others to perform only the basic upkeep of wells Chevron operates jointly with the Venezuelan state-run oil giant PDVSA, crushing the hopes of those who wanted to see a recommencement of exports to ease pricing pressure on American gas stations.
The waiver, which will have its effects for another six months until Dec 1, 2022, retains stringent curbs intended to stop Chevron from drilling, lifting, purchasing or processing Venezuelan-origin crude or oil products.
Last week, the administration hinted at probable ease in terms of CVX’s business in the country. The company, under a distinct authorization, will be permitted to engage in talks with PDVSA on its future operations in the country.
In 2020, the U.S. government barred Chevron from selling crude from the group of joint ventures it has in Venezuela, in which PDVSA is the majority shareholder, and enforced it to halt importing diesel into Venezuela.
However, the U.S. administration upheld that it would grant a complete sanctions respite to Venezuela if President Nicolas Maduro and a coalition of opposition parties led by Juan Guiado pen down an agreement to hold fresh parliamentary and presidential elections in the country.
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent. It currently churns out oil and natural gas at a 59/41 ratio. As of the end of 2021, the company had proved reserves of approximately 12.4 billion barrels of oil equivalent.
Chevron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include
Earthstone Energy
ESTE
,
PBF Energy
PBF
and
Oasis Petroleum
OAS
, each sporting a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Earthstone’s 2022 earnings has been revised upward by about 41.8% over the past 60 days from $2.80 to $3.97 per share. Earthstone’s stock has increased 78.6% in a year.
The Zacks Consensus Estimate for ESTE’s 2022 earnings is projected at $3.97 per share, up about 217.9% from the projected year-ago earnings of $1.25.
The Zacks Consensus Estimate for PBF Energy’s 2022 earnings has been revised upward by about 150% over the past 60 days from $2.52 to $6.30 per share. PBF Energy’s stock has rallied 92.8% in a year.
The Zacks Consensus Estimate for PBF’s 2022 earnings is projected at $6.30 per share, up about 352% from the projected year-ago loss of $2.50.
Oasis Petroleum’s stock has increased 83.7% in a year. Oasis Petroleum beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 19.6%.
The Zacks Consensus Estimate for OAS’ 2022 earnings is projected at $37.08 per share, up about 289.5% from the projected year-ago earnings of $9.52.
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