Chevron Corporation (CVX), Exxon Mobil Corporation (XOM), ConocoPhillips (COP): Three Things You Must Know Before Investing in Energy

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For example, Chevron Corporation (NYSE:CVX) announced that it expects to increase its oil and natural gas production by more than 20% by 2017. A large part of the increase comes from expanding natural gas operations in Australia, specifically in the Greater Gorgon Area. Chevron has a 47% stake in the area, which is expected to produce some 450,000 BOE per day in addition to 8.9 million tons per year of liquid natural gas. Not coincidentally, valuation firm Trefis recently valued Chevron’s shares at $145, $23 higher than it is currently trading.

Final thoughts

Energy companies may look similar at first glance, but they have each have different strengths and weaknesses when studied as an investment. Your analysis shouldn’t stop with just these three metrics, but they are an excellent place to start.

This article was written by Randy Holcombe and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned. The Motley Fool recommends Chevron.

The article 3 Things You Must Know Before Investing in Energy originally appeared on Fool.com.

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