Chevron (NYSE:CVX) is reportedly exploring the sale of certain oil and gas assets in New Mexico and Texas for a value of about $100 million. The oil-producing company has been divesting properties in the Permian Basin, where it’s the largest landowner, possessing 2.2 million acres of land in the region.
The company is offering to sell its two parcels of land via auction, with bids due on July 27. One of the lands covers about 2,134 net acres in New Mexico, and the other parcel spans 29,901 acres in both New Mexico and West Texas.
While CVX is selling its properties in the Permian Basin, the company has also made certain acquisitions in the region recently, demonstrating its commitment to enhancing its portfolio.
As part of this strategy, the company entered into an agreement to acquire PDC Energy (PDCE) in a stock-and-debt deal worth $7.6 billion last month. Furthermore, Chevron bought Noble Energy in 2020 as a strategic move that enhanced its portfolio of U.S. shale and international gas assets.
Is CVX Stock a Buy?
Chevron continues to strategically build its position in the Permian Basin in order to increase its production level to one million barrels of oil equivalent by 2025. Furthermore, the Dividend Aristocrat’s strong cash position supports its dividend payouts to shareholders and share buyback plans.
Wall Street analysts are cautiously optimistic about Chevron. It has a Moderate Buy consensus rating based on 10 Buys and nine Holds. The average CVX stock price target of $189.32 implies 21.2% upside potential.
As per TipRanks data, the most accurate analyst for CVX is Wolfe Research analyst Sam Margolin. Copying the analyst’s trades on this stock and holding each position for one year could result in 89% of your transactions generating a profit, with an average return of 10.13% per trade.
