Energy giant Chevron Corporation (NYSE:CVX) is streamlining its portfolio following its agreement to acquire Hess Corp. (NYSE:HES) last year. As part of its portfolio restructuring initiatives, the company plans to sell all of its holdings in the Duvernay shale located in Alberta, Bloomberg reported.
According to the report, Chevron is one of the leading drilling companies in the Duvernay region. The company aims to divest assets totaling up to $15 billion by 2028, including its holdings in the Duvernay region. This initiative is focused on optimizing its portfolio and redirecting capital to more promising regions, such as the Permian Basin and Guyana.
The Hess deal will likely provide Chevron with high-quality assets and boost its free cash flows. However, CVX stock is down over 18% in one year, underperforming the S&P 500’s (SPX) gain of about 20.4%.
What is the Prediction for Chevron Stock?
Wall Street is cautiously optimistic about Chevron’s prospects due to the lower commodity prices. CVX stock has 12 Buy and five Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $177.71 implies 24.94%.
