Chevron's (CVX) Wheatstone LNG Facility Resumes Full Production
Chevron Corporation CVX announced that it has resumed operations at the Wheatstone LNG facility in Australia. Previously, production at the LNG facility was halted for two weeks for the completion of unplanned repairs at the Wheatstone offshore platform’s fuel gas system. However, the facility has recently resumed full LNG and domestic gas production rates. This also includes the safe restart of operations at the facility’s two LNG trains and the domestic gas plant.
The Wheatstone LNG facility has a total capacity of 8.9 million tons per year and is one of the largest LNG facilities in Australia. Initially, the facility was expected to resume production on Jun 27, but repairs were completed ahead of schedule, allowing operations to resume early.
Chevron also restarted domestic supplies via a pipeline, which is connected to the same LNG facility that supplies gas to both the LNG plant and the onshore grid. Chevron notified Australian regulators that domestic pipeline flows would resume five days earlier than planned.
On a separate note, CVX has mentioned that due to planned maintenance and downtime, it anticipates its production to reduce 65,000 barrels of oil equivalent per day (boe/day) in the second quarter. This reduction is anticipated to affect Tengizchevroil operations in Kazakhstan and some assets in the Gulf of Mexico.
Zacks Rank and Key Picks
Currently, CVX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, SM Energy SM and Hess Midstream Partners LP HESM. Archrock and SM Energy presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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