Oil & Gas Stock Roundup: Spotlight on CVX's Capex Plan, EQNR-SHEL JV

It has been a week since both oil and natural gas prices dropped.The headlines revolved around supermajor Chevron’s (CVX) glimpse of its future spending plans and Equinor EQNR-Shell’s SHEL UK combination. Developments associated with Petrobras PBR and Crescent Energy Company (CRGYCVX) also grabbed attention.Overall, it was a bearish seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased around 1.2% to close at $67.20 per barrel, while natural gas prices moved down 8.5% to end at $3.076 per million British thermal units (MMBtu).The crude price declined after OPEC’s production cut extension failed to address fears about the commodity’s oversupply amid muted global growth.Natural gas settled with a more pronounced loss due to disappointing inventory data and expectations that fewer people would use the fuel to heat their homes due to warmer-than-normal weather.Recap of the Week’s Most Important Stories1.    Energy biggie Chevron recently announced its 2025 capital expenditure (Capex) plan, representing a reduction of about $2 billion from the previous year.CVX’s 2025 Capex plan outlines $14.5-$15.5 billion of capital spending for consolidated subsidiaries and $1.7-$2.0 billion for affiliates. The new budget positions the Zacks Rank #3 (Hold) company to deliver free cash flow growth by investing in high-return and lower-carbon projects, reflecting its commitment toward cost and capital discipline.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The company plans to spend about $13 billion on upstream operations, allocating most of this to develop its U.S. portfolio, particularly the Permian Basin, DJ Basin and the Gulf of Mexico. Though the Permian Basin's budget has been reduced to $4.5-$5.0 billion, the Gulf of Mexico is all set to speed up the deepwater growth projects to deliver the offshore production of 300 thousand barrels of oil equivalent per day by 2026. (Chevron's 2025 Capex Focus: Where Will the Company Spend?)2.    European energy powerhouses Equinor and Shell join forces to establish the UK’s largest independent oil and gas producer. The newly formed incorporated joint venture (IJV) will combine the companies’ UK offshore oil and gas assets to enhance domestic energy production and security.Equinor and Shell will equally own the venture, leveraging their decades of expertise in the UK North Sea. The primary focus is to extend the productive life of the region's oil and gas assets, ensuring economic recovery in a maturing basin facing natural production declines. Based in Aberdeen, the heart of the UK’s energy sector, the venture will consolidate critical assets from both companies, including Mariner, Buzzard and Shearwater.The IJV will focus on sustaining energy production during the UK’s energy transition. By combining resources, the venture aims to remain competitive while supporting energy demands for UK households and industries. Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, emphasized that the new venture will be crucial in ensuring the UK’s secure energy supply while supporting a balanced energy transition. (Equinor, Shell Form JV to Secure UK Oil and Gas Production)3.    Petrobras, Brazil's largest oil and gas company, and its partner Ecopetrol S.A., a Colombia-based petroleum company, have made a historic breakthrough in Colombia’s energy landscape with the discovery of the largest natural gas reserve in the country’s history. The drilling of the Sirius-2 well in the Gujaira Basin has revealed vast natural gas resources, potentially increasing Colombia’s current reserves by 200%. This unprecedented find signals a new era for Colombia’s energy sector and promises to transform its economic prospects.Located within the GUA-OFF-0 offshore block in the Gujaira Basin, the Sirius-2 well is situated at a depth of 830 meters of water. Drilling operations began on June 19, 2024, and have since confirmed volumes exceeding 6 trillion cubic feet of gas in place. This discovery has not only established Sirius-2 as the largest gas find in Colombia’s history but also set the stage for the country to become a leading player in the natural gas industry within the region. The strategic location of the Sirius-2 well within an offshore block offers significant potential for future exploration and extraction. The gas reserves discovered at this site will likely provide Colombia with a robust energy source for decades to come. This will boost the country’s energy security and economic growth. (Petrobras & Ecopetrol Announce Colombia's Biggest Ever Gas Discovery)4.    U.S.-based upstream operator Crescent Energy Company has announced the acquisition of Ridgemar Energy's Eagle Ford assets in Texas. The company stated that the cash-and-stock deal is valued at $905 million. Per the terms of the deal, Crescent Energy may have to pay an additional $170 million, subject to future oil prices. The deal is anticipated to be closed in the first quarter of 2025.The acquisition should further expand CRGY’s footprint in the Eagle Ford basin, one of the most prolific basins in the United States. Crescent Energy has achieved operational synergies following the integration of SilverBow Resources into its portfolio.Ridgemar Energy, backed by private equity firm Carnelian Energy Capital, is one of the largest private oil-producing companies operating in the Eagle Ford. The company produces approximately 20,000 barrels of oil equivalent per day. (Crescent Energy to Strengthen Eagle Ford Presence With New Acquisition)Price PerformanceThe following table shows the price movement of some major oil and gas players over the past week and during the last six months.Company    Last Week    Last 6 MonthsXOM             -3.7%                +1.6%CVX              -4.1%                +1.8%COP             -4.7%                -8.8%OXY              -6%                   -20.4%SLB              -6.7%                -8.6%RIG              -8.6%                 -29.9%VLO              -5.4%                -10.8%MPC             -3.3%                -10.5%With oil and gas moving down for the week, stocks were mostly southbound. The Energy Select Sector SPDR — a popular way to track energy companies — fell 4.7% last week. Over the past six months, the sector tracker has edged down 0.3%.What’s Next in the Energy World?Market participants will also keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report Crescent Energy Company (CRGY): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks