Chevron Bets Big on Risky Countries with a Long-Term View
Chevron, one of the world's largest energy companies, has made a habit of investing in countries others tend to avoid. The company's portfolio includes upstream (production), midstream (pipeline), and downstream (chemicals and refining) assets, spread across the globe.
The integrated energy giant thinks in decades, not just quarterly earnings or near-term oil price fluctuations. Energy assets are huge capital investments that can take years to build and produce for decades, requiring a long-term perspective.
Chevron's willingness to invest in countries like Venezuela and Iraq may seem risky in the short term, but it gives the company an edge over more conservative competitors like ExxonMobil. With a debt-to-equity ratio of roughly 0.2x, Chevron has the financial wherewithal to stick with bold bets even if they take years to pay off.