Yahoo Finance Chevron (CVX) Extends Shelf Drilling Contract Till 2026
Chevron Corporation CVX has awarded a contract to Shelf Drilling to carry out drilling operations off the coast of West Africa for its Angolan subsidiary, Cabinda Gulf Oil Company. Per the offshore driller, the Shelf Drilling Tenacious jack-up rig has been hired for a 15-month contract, whose total added value came in at $66 million.
Shelf Drilling’s recent fleet status report, released in May 2024, mentioned that Cabinda Gulf Oil Company has a 15-month option, per the terms of its current contract. The CVX subsidiary exercised the option to extend the Shelf Drilling Tenacious jack-up rig’s stay in the region.
The jack-up rig has been working with Cabinda Gulf Oil Company since January 2022. The rig’s most recent contract extension is set to keep it engaged until November 2024. The 15-month contract extension is scheduled to commence in direct continuation of the rig’s current contract, prolonging its commitment until February 2026.
The Shelf Drilling Tenacious is a 2007-built Baker Marine Pacific 375 jack-up rig that has the capacity to accommodate 150 people. It has a maximum drilling depth of up to 30,000 feet and can operate in a water depth of 375 feet.
Zacks Rank and Key Picks
Currently, CVX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, Hess Midstream Partners LP HESM and Sunoco LP SUN.Archrock presently sports a Zacks Rank #1 (Strong Buy), while Hess Midstream and Sunoco carry a Zacks Rank of #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.
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