Chevron (NYSE:CVX) has relocated from its decades-old headquarters, the Chevron Park campus in California, by selling it to Sunset Development Co., according to the WSJ.
The energy giant has signed a new lease with Sunset for a smaller space in the vicinity that is one-third the size of its preceding headquarters. The financial terms of the sale and the lease agreement were kept under wraps.
Over the last few years, the oil-and-natural-gas industry in the U.S. has moved to Houston. Houston has many advantages like lower taxes, a supportive regulatory framework as well as cheaper real estate.
Likewise, Chevron followed the footsteps of its peers, downsizing its real estate in California as more workers availed of the work-from-home options partially during the week.
Chevron has been working on the strategic move for years, shifting a majority of its workforce to Texas (now three times the size of its California workforce). Putting the speculation to rest, the company reaffirmed that California would continue to be its main headquarters despite the shift.
What is the Future of Chevron Stock?
As per TipRanks, the future of CVX stock looks bright as it has an average price target of $178.73, which implies 22.6% upside potential from current levels. However, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on 10 Buys and five Holds.
Markedly, CVX stock boasts a top-notch Smart Score of a “Perfect 10” on TipRanks, indicating that the stock has strong potential to outperform market expectations.
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