Chevron And Exxon: Reason To Be Cautious
https://seekingalpha.com/article/4551050-chevron-and-exxon-reason-to-be-cautious
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Our returns would be better if we weren’t burning money through LCS. Hoards of people working LCS with zero profit for how long?
- All the graphs are broken out in this analysis. The conclusion: caution is warranted.
- Inflation-adjusted prices point to a peak in the cycle. We'll take a look at the history of oil booms and busts.
- Chevron and Exxon's valuations are officially stretched trading at cyclically adjusted PEs of 23x and 30x.
- In the decade ahead, we project modest returns of 5% per annum for Chevron and 7% per annum for Exxon.