Chevron (CVX), Egypt Sign Mediterranean Gas Exploration Deal

Chevron Corporation CVX, the U.S.-based energy major, and Egypt’s government-run Egyptian Natural Gas Holding Company recently signed a memorandum of understanding to work together on transporting natural gas from offshore Mediterranean fields to Egypt for processing, liquefaction and export.

Per the agreement, the two firms will evaluate potential prospects to transfer the gas available in the eastern Mediterranean Sea to Egypt to magnify its value by liquefying it to be re-exported and sold. This process will make it economically viable for both parties.

Two years ago, Chevron bought a 40% interest stake in a huge natural gas field in the Mediterranean Sea, off the coast of Israel. Moreover, the company plans to drill its first exploration well in its concession area in the eastern Mediterranean Sea in September.

CVX said that it is also considering gas monetization in the region, which will include floating LNG (“FLNG”) technology. FLNG comprises the use of ships or offshore platforms to convert gas into liquid for supply to tankers.

“We look forward to continuing to build our relationship with EGAS and the Egyptian government," Chevron stated.

Meanwhile, the Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla, held a meeting with the CEO of Chevron, Michael Wirth, where they discussed the shared cooperation between the two parties and CVX’s activities in the field of research and exploration.

Chevron is one of the largest publicly traded oil and gas companies in the world with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, Chevron is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent.

Chevron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Enerplus ERF, PBF Energy PBF and Murphy USA MUSA each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enerplus stock has rallied 115.1% in a year. The Zacks Consensus estimate for Enerplus’ 2022 earnings has been revised 31.8% upward over the past 60 days.

The Zacks Consensus Estimate for ERF’s 2022 earnings is projected at $3.40 per share, up about 250.5% from the projected year-ago earnings of 97 cents.

The Zacks Consensus Estimate for PBF Energy’s 2022 earnings has been revised upward by about 103.3% over the past 60 days from $3.34 to $6.79 per share. PBF Energy’s stock has rallied 118.6% in a year.

The Zacks Consensus Estimate for PBF’s 2022 earnings is projected at $6.79 per share, up about 371.6% from the projected year-ago loss of $2.50.

The Zacks Consensus Estimate for Murphy USA’s 2022 earnings per share (EPS) has been revised upward by about 44.8% over the past 60 days from $12.11 to $17.54.

MUSA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49.1%.

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