Credit: Shutterstock photoAs per media reports, Chevron CorporationCVX has completed its largest seismic survey for deciphering the feasibility of its Australia oil hunt.
Seismic survey is generally referred to as earth's ultrasound that comes in handy for the oil and gas exploration and production players while locating the presence and the size of deposits. The integrated major is now analyzing data from the survey to decide whether oil drilling activities in the Great Australian Bight would at all be viable. The reserves in the region - the world's last immense unexplored basin per BP plc BP - are still untapped.
BP completed seismic survey three years back and is now mulling over drilling the Great Australian Bight by Oct 2016.
San Ramon, CA-based Chevron is one of the largest integrated energy companies in the world with an impressive business model. Its current oil and gas development project pipeline is among the best in the industry, boasting large, multi-year projects. Additionally, Chevron possesses one of the healthiest balance sheets among its peers, which helps it to capitalize on investment opportunities with the option to make strategic acquisitions.
However, the ongoing oil price slump has adversely affected Chevron's cash flows, particularly at its upstream unit which is its largest earnings generating segment.
As a result, Chevron currently carries a Zacks Rank #3 (Hold) implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, a couple of better-ranked players in the energy sector are Pembina Pipeline Corporation PBA and LRR Energy LP LRE . Both firms sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
