Exxon Mobil Corporation (XOM), ConocoPhillips (COP): Is Chevron Corporation (CVX) Destined for Greatness?

Fool contributor Dan Carroll notes that Chevron Corporation (NYSE:CVX) has also recently pulled out a liquefied-natural-gas project in Nigeria after enduring delays. However, the company should continue to expand its geographical presence in resource-rich Africa — at least once crucial Middle Eastern shipping lanes again appear relatively safe. Chevron isn’t alone in its withdrawal from Middle Eastern projects — rival Exxon Mobil Corporation (NYSE:XOM) recently reduced its stake in an Iraqi field due conflicts between the Baghdad and Kurdish governments.

On the other hand, Exxon Mobil Corporation (NYSE:XOM) recently acquired Celtic Exploration for $2.6 billion, and has bought up 226,000 acres of unconventional oil assets from ConocoPhillips (NYSE:COP) in Athabasca, Canada for a price of $720 million. Going forward, Chevron Corporation (NYSE:CVX) has also been aggressively leveraging its non-conventional oil reserves, as it made an agreement with Argentine-government-controlled YPF to gain access to shale oil reserves located in Vaca Muerta in Argentina. The race is on to control promising fields in relatively safe locations.

Fool analyst Joel South notes that United States’ oil and nat-gas production levels are moving up, but the industry is saddled with high capital expenditures, which crimp even the largest companies’ ability to make any big domestic moves. The domestic oil-directed rig count also saw a significant decline due slowing drilling activities in the latest quarter. However, Chevron’s efforts to go midstream with its Angola pipeline project should pay off in the near future. The company’s Gorgon facility is also 67% complete.

Putting the pieces together
Today, Chevron Corporation (NYSE:CVX) has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Chevron Destined for Greatness? originally appeared on Fool.com.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Chevron. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.