Core Viewpoint - A resolution in Chevron's acquisition of Hess Corporation is imminent, with arbitration nearing a decision that could significantly impact Chevron's growth trajectory and cash flow prospects [1][2]. Acquisition Details - The arbitration centers on whether Exxon Mobil and CNOOC have a right of first refusal on Hess's stake in the Stabroek block, which is crucial for Chevron's all-stock deal [3][4]. - The deal has already passed antitrust review and received shareholder approval, indicating strong initial support for the acquisition [2][4]. Potential Outcomes - If the arbitrators rule that the right of first refusal does not apply to a full corporate acquisition, Chevron's deal could close quickly [4]. - Conversely, if the right of first refusal is upheld, only Exxon or CNOOC could acquire Hess's stake, potentially derailing Chevron's plans [5]. Strategic Importance - The acquisition is viewed as transformative for Chevron, significantly increasing production with low-cost oil and expanding its geographic footprint [6]. - It addresses a projected gap in Chevron's project pipeline beyond 2027, fostering free cash flow growth into the early 2030s [6]. Financial Projections - While the merger may initially dilute free cash flow per share, it is expected to outperform Chevron's standalone free cash flow by 2029 [7]. - Chevron is projected to generate over $18 per share in free cash flow by 2028 at $70 Brent, supported by major project ramp-ups [7]. Market Position - Chevron currently trades at an 11% free cash flow yield, higher than Exxon's 9%, indicating potential for a re-rating as clarity on post-2027 growth emerges [8]. - The downside risk for Chevron appears limited, as it offers advantages such as an integrated value chain and a balanced portfolio [9]. Future Considerations - The anticipated organic growth over the next two years could provide Chevron with the flexibility to pursue additional acquisitions, although high-quality targets are becoming scarce [10]. - If the Hess deal does not close, Chevron may redefine its strategic direction based on the resulting clarity [10].

Philipp is a seasoned value investor with nearly 20 years of experience in the field. He takes a global approach to investment opportunities, seeking out undervalued companies that offer a significant margin of safety, leading to attractive dividend yields and returns. While he does not limit his investments to specific sectors or countries, he focuses only on companies he thoroughly understands and can reasonably assess for future growth potential. Philipp is particularly enthusiastic when he identifies a ...

LVM Capital Management bought a $3.16 million stake in Northrop Grumman last quarter.What happenedLVM Capital Management increased its holding in Northrop Grumman (NOC -0.44%) by 6,237 shares during Q2 2025, bringing its total stake to 39,485 shares valued at $19.74 million. The purchase, disclosed in a Securities and Exchange Commission (SEC filing) for the period ending Q2 2025, totaled $3.16 million and adjusted the fund’s NOC allocation to 2.05% of its reportable assets.What else do you need to know?Top ...

Key Takeaways Chevron's Future Growth Project at Tengiz is fully operational, adding 260K barrels of oil per day. The project is set to generate $5B in free cash flow in 2025 and $6B in 2026 from Chevron's 50% stake. FGP expands CVX's reach in Eurasia, using tech like gas reinjection and digital operations for efficiency.Chevron Corporation (CVX) has completed a massive undertaking in Kazakhstan. The $48 billion Future Growth Project (FGP) at the Tengiz oil field, managed through its 50% owned partner Ten ...

Key Takeaways BP has gained 13.8% in six months, outperforming sector peers ExxonMobil and Chevron. Strong free cash flow growth and upstream project execution support BP's investment appeal. BP's dividend yield of 6.14% tops industry rivals, backed by disciplined capital strategy.Shares of BP plc (BP) have gained 13.8% in the past six months, outperforming the oil-energy sector’s gain of 9.8%. The company has a market capitalization of $9.3 billion.BP also outpaced its energy peers, Exxon Mobil Corporati ...

Key Takeaways DKNG's Q1 adjusted EBITDA hit $103M, up from $22.4M a year ago despite a $170M revenue impact. Margin gains reflect a 300 bps rise in gross margin and tighter control of promotional spending. DKNG expects sportsbook hold to improve and EBITDA to exceed $200M in Q2 on a stronger handle.DraftKings Inc. (DKNG) is transitioning from a high-growth story to a disciplined, cash-generating business, and 2025 could mark a critical turning point. With a reaffirmed free cash flow (FCF) target of $750 m ...

Core Viewpoint - Range Resources Corporation (RRC) has shown resilience with a 5.5% share price increase over the past six months, contrasting with a 20.7% decline in the oil-energy sector and a 3.6% rise in the S&P 500 composite [1][6] Financial Performance - RRC's market capitalization stands at $9.3 billion [1] - The Zacks Consensus Estimate projects a 38.3% year-over-year increase in RRC's 2025 earnings per share (EPS) and a 14.3% rise in revenues to $3.2 billion [3][6] - The company has achieved a 34.3% earnings growth over the last five years, surpassing the industry average of 26.1% [3] - Long-term earnings growth is anticipated at 40.8%, exceeding the industry average of 20.5% [4] Valuation and Price Targets - The average price target for RRC, based on 22 analysts, is $42.18 per share, indicating an 8.26% upside from the last closing price [5] - RRC is currently trading at a trailing 12-month EV/EBITDA of 10.01X, which is lower than the broader industry average of 11.07X [8] - The 2026E EV/EBITDA multiple is projected at 6.5X, significantly below sector peers and broader equity indices [14] Cash Flow and Capital Management - RRC has consistently generated free cash flow, with a cumulative $3.2 billion from 2021 to 2024 [13] - The forecast for 2025 free cash flow exceeds $450 million, with potential to surpass $1 billion at $4.50/MMBtu natural gas prices [6][13] - The company operates with a capital reinvestment rate below 50%, allowing for a production growth of approximately 20% through 2027 while returning capital to shareholders [13] Resource Base and Operational Efficiency - RRC holds over 30 years of high-quality, undrilled Marcellus inventory, with approximately 28 million lateral feet of drilling potential [10] - The inventory breaks even at natural gas prices below $2.50/MMBtu, with some assets viable under $2.00/MMBtu [12] - The company benefits from low capital intensity and peer-leading well costs, enabling sustained value creation even in modest commodity price scenarios [15] Environmental, Social, and Governance (ESG) Practices - RRC achieved net-zero Scope 1 and 2 greenhouse gas emissions in 2024 and reduced methane intensity by 83% since 2019 [16] - The company recycles more than 100% of its produced water and has implemented an extensive leak detection program [16] - These practices enhance stakeholder relations and support a long-term license to operate in Appalachia [17]

Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL INVESTOR UPDATE Third Quarter Fiscal 2025 Forward-Looking Statements/Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and u ...

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Investment Strategy - The company adopts a global approach to investment opportunities, focusing on undervalued companies that provide a significant margin of safety, leading to attractive dividend yields and returns [1] - The investment strategy is not limited to specific sectors or countries, but emphasizes companies that are well understood and assessed for future growth potential [1] Valuation Metrics - The company shows particular enthusiasm for companies with a solid earnings track record that are trading at less than 8 times free cash flow, which is a key metric for identifying potential investments [1]