In this week’s video blog post, I look at Chevron’s business model, top 5 risk factors, and contingent liabilities outlined in the company’s annual report.
As value investors, it is important to review the company’s fundamentals before deciding to invest in any company. Hope you all find this 16 minute video blog interesting. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
Chevron, an integrated Energy and Chemical company, is primarily divided into 2 business segments – Upstream Operations and Downstream Operations. Chevron’s goal is to lead the industry by providing superior shareholder value in any business environment. Chevron is focused on lowering carbon intensity cost efficiently, increasing the use of renewables in its business, and investing in future breakthrough technologies.
The top 5 risk factors I discussed are:
- Chevron is exposed to the effects of changing commodity prices.
- The company’s operations have inherent risks and hazards that require significant and continuous oversight.
- The company does not insure against all potential losses, which could result in significant financial exposure.
- Regulation of greenhouse gas (GHG) emissions has increased and could continue to increase Chevron’s operational costs and reduce demand for Chevron’s hydrocarbon and other products.
- Increasing attention to environmental, social and governance (ESG) matters may impact our business.
0:30 Business Overview
2:31 Petroleum Industry Overview
3:51 Chevron’s Strategic Direction
5:11 Top 5 Risk Factors
10:25 Contingent Liabilities
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10K Annual Report: here
Morningstar Key Ratios Link: here.
Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries..
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