Chevron, Sitting on Cash Pile: an Acquisition Target That Makes Perfect Sense
With interest rates low, shareholders can argue it's counterproductive to be sitting on so much cash. Put it to work. So there's been talk about acquisitions and what it could buy.
One idea: it could buy that heap of trouble Chesapeake Energy (CHK). As natural gas prices are low, Chevron might be able to get the country’s second-biggest and most-troubled natural gas producer for a decent price. Shareholders seem eager to sell it off.
But there's a nice energy company that might be an even more attractive takeover target. Its name is Chevron. Take a look at its PE.
One of Chevron's competitors spends a lot of its extra cash buying up its own stock.
Chevron hasn't done as much of that, and it has plenty of cash.
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