According to Reuters, Chevron Corporation (NYSE:CVX) is considering divesting its 20% holding in the giant Athabasca Oil Sands project, potentially becoming the latest energy conglomerate to leave Canada’s oil sands. Due to low crude prices and the considerable initial capital investments required to get a project off the ground, oil giants Royal Dutch Shell and ConocoPhillips (NYSE:COP) have sold much of their Canadian oil sands to other companies in recent months. If Chevron Corporation (NYSE:CVX) were to divest, the company could potentially raise $2.5 billion for its 20% stake. Chevron has lately divested non-core assets to focus more on more promising and lower-cost shale plays.
Shares of the company are down Thursday due to softer crude prices and broader sector weakness.
What Does The Smart Money Sentiment Say?
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Smart money sentiment surround Chevron was stable in Q4. Of the 742 elite funds we track, 50 had a bullish position in Chevron Corporation (NYSE:CVX) at the end of the fourth quarter, down 3 funds from the previous quarter.
The Bottom Line
Chevron Corporation (NYSE:CVX) is trending after Reuters reported that the company is considering divesting its stake in a giant Canadian oil sands project. For more reading, check out ‘11 Countries That Consume The Most Oil In the World‘.