Chevron unit inks $120M two-year crude supply prepayment agreement
Chevron has secured a prepayment and commercial agreement with Frontera Energy’s Colombian unit to receive up to $120 million of crude oil supply over two years. The deal enhances Chevron’s feedstock diversification in South America and provides price certainty through prepaid terms.
1. Institutional Stake Increase
Annex Advisory Services LLC boosted its holdings in Chevron by 4.4% during the third quarter, purchasing an additional 8,589 shares to reach a total of 205,705 shares. The position was valued at $31.94 million in the fund’s latest Form 13F filing. Other asset managers also adjusted their exposure: Quaker Wealth Management increased its stake by 197.7% to 217 shares, Vermillion & White Wealth Management Group added 86.1% for a 255-share holding, and IMG Wealth Management raised its position by 52.3% to 265 shares. Collectively, institutional investors and hedge funds now own 72.42% of Chevron’s outstanding equity.
2. Insider Sale by Board Director
Director John B. Hess reduced his personal stake by selling 275,000 shares on November 20th, representing a 19.6% decline in his holdings. The transaction generated proceeds of approximately $41.46 million, leaving Hess with 1,128,045 shares valued at roughly $170.05 million. Insider ownership across all executives and directors stands at 0.20% of Chevron’s total shares outstanding.
3. Analyst Rating Updates
Equity research firms have recently revised their assessments of Chevron’s outlook. Mizuho upgraded to an outperform rating while raising its price target from $204 to $206. UBS maintained a buy recommendation, Raymond James Financial reiterated an outperform stance but trimmed its target to $160 from $170, and Piper Sandler adjusted its overweight rating with a reduced objective of $169 from $171. Overall, one analyst rates the stock as Strong Buy, eleven as Buy, eight as Hold, and three as Sell, yielding an average consensus target of $166.
4. Q3 Earnings and Dividend Announcement
For the third quarter, Chevron delivered earnings per share of $1.85, surpassing consensus estimates by $0.14, on revenue of $48.17 billion, which outpaced forecasts by $1.18 billion. The results reflected a 1.9% year-over-year decline in quarterly revenue. Net margin stood at 6.57%, while return on equity reached 8.74%. The company also declared a quarterly dividend of $1.71 per share, equating to an annualized payout of $6.84 and a yield of approximately 4.5%, with a payout ratio of 96.2%.