Chevron-branded products are sold in North America by business
units of ChevronTexaco Corp. Included are Chevron Products Co.,
which operates six major U.S. refineries and markets petroleum
products, primarily gasoline. The Global Lubricants business
markets motor oils and many other types of lubricants. Global
Aviation oversees the marketing of general aviation fuels.
Based in San Ramon, Calif., Chevron Products Co. is one of the
largest refiners and marketers of petroleum products in the
United States. With six refineries and 7,900 retail outlets,
it serves customers in 29 states - - primarily in the West,
Southwest and South. It is also one of the top three asphalt
sellers in the nation, a product supplied by two additional
asphalt refineries in Willbridge, Ore., and Perth Amboy, N.J.
Chevron Product's three largest refineries -- in Pascagoula,
Miss. and the California cities of Richmond and El Segundo --
are complex and highly efficient facilities, each a strong
competitor in its respective region. The West Coast
refineries are configured to reliably produce large volumes
of high-value, cleaner-burning gasoline and diesel fuels,
designed to meet the specific and stringent air quality
needs of the California market. The company's three smaller
refineries --on the Hawaiian island of Oahu, in El Paso,
Texas and Salt Lake City, Utah -- are positioned to take
advantage of growing niche markets.
Reasons To Invest
There are several catalysts at play in ChevronTexaco that could
take the stock higher over the next 12 to 18 months. One of
which is a macro economic event, the other company specific.
OPEC recently agreed to a production cut of 1.5 million barrels
of crude oil per day. The cartel is trying to add support to
the weak price of oil, which has slid lower in the last year
because of weak demand due to the slumping global economy and
overcapacity. Meanwhile, major oil concerns have been scrambling
to reduce supply. The pieces are falling in place to see a
rally in the price of oil, with the economy rebounding, OPEC
determined to cut supply and the oil companies doing the same.
It's a classic supply/demand set-up.
ChevronTexaco, which not too long ago was two separate and very
big oil companies, will benefit from the synergies created by
the merger over the next twelve months. The combined company
will cut costs and boost profitability, making it one of the
premier plays in the next cycle higher in the energy market.
All the while, investors can collect the chunky dividend that
comes along with owning shares of ChevronTexaco. At present,
the stock is yielding over 3 percent annually. The dividend
alone could carry this stock higher in the New Year as investors
seek out better returns that cash accounts with 1 handles.
Shares to Qualify = 1 Accept Foreign Accounts: Yes
Auto-reinvestment = Yes Temper Enrollment Serv: Yes
Min/Max Investment = $50 to $100,000/year
Dividend: 5% to $2.50 + 8 cents/share Cash: $3 + 8 cents/share
Auto ReInvest: $1.50 + 8 cents/share
Industry Group: Integrated Oil 52-week high=$98.49
Annual Dividend Per Share= 2.80 52-week low =$78.44
Last earnings 10/20 est = 1.45 actual = 1.82
Next earnings 01-20 est = 0.92 versus = 2.21
P/E = 11.62
Strong Buy = 8
Moderate Buy = 3
Hold = 9
Moderate Sell = 0
Strong Sell = 1