Chevron, Sitting on Cash Pile: an Acquisition Target That Makes Perfect Sense
Chevron (CVX) has some money to spend. In fact, for the past two years, it's been carrying around more cash than Exxon (XOM) has been.
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.
CVX Cash and ST Investments data by YCharts
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.
CHK Market Cap data by YCharts
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.
CVX PE Ratio data by YCharts
One of Chevron's competitors spends a lot of its extra cash buying up its own stock.
XOM Stock Buybacks data by YCharts
Chevron hasn't done as much of that, and it has plenty of cash.
CVX Stock Buybacks data by YCharts
From the editors of YCharts.YCharts Pro Investor Service includes professional stock charts, stock ratings and portfolio strategies.
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