On March 6th Chevron Corp said it expected its annual production to increase at a rate between 4% and 7% during the current year. The company also projects to boost its free cash flow, which would allow it to resume its share buyback program for the first time since 2015.
Chevron shares closed higher for a second consecutive trading session on Tuesday. The stock went up 0.44% ($0.50) to $113.65, after touching an intraday high at $115.49, or a price level not seen since February 27th ($116.05).
In the week ended on March 4th the shares of the oil major lost 0.84% of their market value compared to a week ago, which marked the sixth drop out of seven weeks.
However, due to the recent streak of gains, the stock has extended its advance to 1.55% so far during the current month, following a 10.71% slump in February. The latter has been the worst monthly performance since February 2009, when the stock plummeted 13.91%.
For the entire past year, Chevron shares rose 6.36% following another 30.84% surge in 2016.
Chevron expects asset divestitures, reduction in overall expenditures as well as increased oil production at higher margins due to rising output and stabilizing prices within the industry.
“We intend to maintain capital discipline … Even with no commodity price appreciation, we expect to deliver stronger upstream cash margins and production growth. This is a powerful combination”, Michael Wirth, Chevrons Chief Executive Officer, said during an analyst day presentation, cited by Reuters.
According to the US oil company, its overall production forecast for 2018 is based on oil price levels at $60 per barrel, while the projection also does not take into account asset sales.
Chevron said it expected high margin barrels of oil to increase by over 200 million barrels of oil equivalent per day during the current year. Meanwhile, the oil major expects Permian Basin production to increase to almost 500 000 barrels per day by the end of 2020 and 650 000 barrels per day by the end of 2022.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Chevron’s stock price, have a median target of $132.00, with a high estimate of $160.00 and a low estimate of $106.00. The median estimate is a 16.15% surge compared to the closing price of $113.65 on March 6th.
The same media also reported that 13 out of 25 surveyed investment analysts had rated Chevron Corporation’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Chevron stock are presented as follows:
R1 – $113.88
R2 – $114.10
R3 (Range Resistance – Sell) – $114.33
R4 (Long Breakout) – $115.00
R5 (Breakout Target 1) – $115.79
R6 (Breakout Target 2) – $116.12
S1 – $113.42
S2 – $113.20
S3 (Range Support – Buy) – $112.97
S4 (Short Breakout) – $112.30
S5 (Breakout Target 1) – $111.51
S6 (Breakout Target 2) – $111.18
By using the traditional method of calculation, the weekly levels of importance for Chevron Corporation (CVX) are presented as follows:
Central Pivot Point – $112.51
R1 – $115.18
R2 – $118.73
R3 – $121.40
R4 – $124.08
S1 – $108.96
S2 – $106.29
S3 – $102.74
S4 – $99.20
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