Chevron (CVX) is drawing investor attention after reports revealed the company is exploring a potential purchase of select overseas assets from Russian oil major Lukoil (LUKOY). The move comes after receiving clearance from U.S. authorities to engage in preliminary talks with Lukoil. The development has sparked fresh optimism around Chevron’s stock as investors weigh the potential strategic and financial upside. CVX stock is up by 0.17% in pre-market hours on Tuesday.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Chevron is one of the world’s largest integrated energy companies, operating across oil, gas, and renewable energy. Meanwhile, Lukoil is a Russian oil and gas producer with a broad portfolio of upstream and downstream assets worldwide.
More Details About the Potential Deal
According to Reuters, Chevron is exploring the possibility of acquiring select Lukoil assets in regions where the two companies’ operations overlap, rather than pursuing the Russian firm’s entire portfolio. Chevron’s interest has not been previously reported.
The report comes after the U.S. Treasury last week granted potential buyers clearance to hold discussions with Lukoil regarding its foreign assets. Last month, the U.S. imposed sanctions on Russian oil companies, including Lukoil, as part of the administration’s efforts to pressure Moscow into engaging in peace talks with Ukraine.
If it proceeds, Chevron would join Carlyle (CG) and other interested firms in pursuing a Lukoil portfolio valued at at least $20 billion.
What the Lukoil Deal Could Mean for Chevron
Lukoil operates three refineries in Europe, holds stakes in oilfields across Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, and owns hundreds of retail fuel stations worldwide — including some in the U.S.
For Chevron, the potential deal signals a rare opportunity for an American energy giant to expand its global portfolio through Russia-linked assets. With this deal, Chevron could expand its global footprint at a time when high-quality energy assets are limited. Additionally, acquiring select Lukoil assets would strengthen its upstream portfolio, increase production capacity, and potentially improve long-term cash flow.
However, the move comes with geopolitical and regulatory risks, meaning Chevron would need to navigate the deal carefully.
Is CVX Stock a Buy, Sell, or Hold?
With 13 Buys and four Holds, Chevron stock scores a Strong Buy consensus rating on TipRanks. The average CVX stock price target of $176.18 indicates almost 14.0% upside potential from current levels.
