This energy giant is a safer way for investors looking to be positioned in the energy sector. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company, with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. The company sports a sizable dividend and has a solid place in the sector when it comes to natural gas and liquefied natural gas (LNG).
Back in December, the company gave some solid 2021 guidance, and the analyst noted this at the time:
Chevron provided guidance around capital expenditures through 2025. On a headline basis, the company expects to spend $14 billion in 2021 ($9.7 billion in cash capital expenditures), and $14-$16 billion annually in 2022-2025 relative to Chevron’s prior out year guidance of $19-22 billion, which excluded the Noble transaction. The company remains focused on investments in the Permian, other unconventionals, and the Gulf of Mexico.
Shareholders receive a 5.43% dividend, which analysts feel comfortable will remain at current levels. Truist Securities has a $105 price target, which is higher than the $103.77 consensus target. The last Chevron stock trade on Thursday was reported at $95.00 a share.
This is another large-cap company with a stock that offers strong value for investors. ConocoPhillips (NYSE: COP) explores for, produces, transports and markets crude oil, bitumen, natural gas, LNG and NGLs worldwide.
Conoco’s portfolio includes resource-rich North American tight oil and oil sands assets; lower-risk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects.
Many Wall Street analysts feel that Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford, with visibility on future growth from a sizable position in the Permian. While sentiment on the company has soured given, federal lands exposure, M&A uncertainty and some less than stellar earnings execution, the analysts expect the stock price to reflect a recovery in 2021 and 2022 crude oil prices.
Investors receive a 3.61% dividend. Truist Securities has set its price target at $50. The posted consensus target is higher at $55.27, and ConocoPhillips stock closed at $47.69 on Thursday.