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I don't want to say anything, it's not recommended, but according to WB I invested in $CVX+0.5% stock and unlike him I continue to hold it and I'm really happy about it as an extremely favorable deal for the company was announced today (the investment decision was made after my analysis, don't worry). We'll write more below.

CVX

Chevron

CVX
$152.81 $0.80 +0.53%
Capital Structure
Market Cap
291.1B
Enterpr. Val.
305.2B
Valuation
P/E
13.6
P/S
1.5
Dividends
Yield
4.0%
Payout
26.6%

Chevron Corp announced it will acquire PDC Energy $PDCE-0.3% in an all-stock transaction for $7.6 billion, including debt.

The oil giant said the deal with PDC will bring strong free cash flow, low-fracture production and development opportunities in Chevron's "neighborhood" in the Denver-Julesburg Basin, as well as additional acreage to the company's position in the Permian Basin.

The deal is expected to increase Chevron's proved reserves by 10% at a purchase price below $7 per barrel of oil equivalent.

I don't know what else to say, great deal!


Great news for everyone holding on. Unfortunately I didn't catch Chevron and I don't want to jump in - I have other oil companies.

I used to sell CVX too, I think they've humbled ATH and it won't go any higher. Yeah, the other thing would be in a possible escalation of the war, but that's just a if. This deal looks good for both sides, so great news for shareholders.

But the stock hasn't reacted much yet 🤔

I'm not surprised, the news may not carry that much weight even if it's good. Plus the price of oil is down for the third day in a row, that may be a factor too.

Buffett didn't sell the whole position either, he's still a shareholder, so he's certainly happy about this deal. The boost to free cash flow is good, plus it will increase diversification within the Persian Basin and the Denver one a bit more.