Chevron's Move to Exit Coal Mining Makes Sense
Chevron (NYSE:CVX) is one of the largest energy companies in the world, engaging in a variety of businesses like exploration & production of oil and natural gas as well as refining, transportation and trading. The company competes with other established oil producers like Exxon (NYSE:XOM), ConocoPhillips (NYSE:COP), BP (NYSE:BP) and Anadarko (NYSE:APC). Our price estimate for Chevron stands at $104, which is in line with market price.
We have previously talked about Chevron trimming down its downstream business and focusing more on upstream, with a push into natural gas. It seems that Chevron is on a spree to better align its resources to focus on profitability. This could well be the reason behind its recent announcement in which the company expressed interest in selling its coal mining business.
(Chart created by using Trefis'
Chevron’s Mining Business At a Glance
Chevron operates both coal and molybdenum mining businesses. The productionComplete Story »