Buffett will benefit from the new Petro Heaven in Guyana, through Chevron.

***THE ARTICLE DOES NOT CONSTITUTE AN INVESTMENT RECOMMENDATION***

***CHEVRON SHARES CAN BE TRADED ON THE VARCHEV ABSOLUTE TRADER PLATFORM UNDER THE TICKER CVX.US***

Warren Buffett will indirectly gain exposure to emerging oil superpower Guyana thanks to Chevron’s planned acquisition of Hess (the fifth largest exposure in Buffett’s portfolio).
-Hess has a 30% stake in an oil reservoir off the coast of Guyana where Exxon Mobil has discovered more than 11 billion barrels of oil.
-Chevron described the field as an “outstanding asset” that is expected to deliver production growth over the next decade.

Berkshire Hathaway owns a 6.4% stake in Chevron worth about $20 billion. The company is poised to benefit from the Chevron-Hess merger and gains from Guyana’s oil reserves, which could boost Chevron’s stock value and extrapolate Buffett’s profits.
– According to forecasts, Guyana’s GDP is expected to grow by 38% to approximately $16 billion, which is about one-seventh of Warren Buffett’s net worth. The country is expected to produce 400,000 barrels of oil a day this year and 1.2 million barrels by 2028.
-However, if Berkshire Hathaway does not increase its stake, it will be diluted to 5.5% due to Chevron’s share issuance to finance the Hess acquisition.

Chevron is one of the five largest exposures in Buffett’s $350 billion portfolio.
TOP 10 SHARES IN BUFFET’S PORTFOLIO

Because Berkshire owns a significant stake in Chevron, Buffett will be keeping a close eye on the Hess deal and the Guyana facility, as it will have a direct impact on his investment in Chevron.

Technical picture:

-The price is reaching key support levels. We see that it will currently test 23.6FIBO (key horizontal support), which coincides with the bottom of the main long trend. The current 65MA crosses the 200MA /Golden Cross/, which further supports the Bullish scenario, after the nearly year-long consolidation sideways. Currently, the price is below 200MA, which makes it profitable for long-term investors, while the main trend made a good correction with the lowest point of correction up to 38.2FIBO /which is considered a corrective trend correction/.

***CHEVRON SHARES CAN BE TRADED ON THE VARCHEV ABSOLUTE TRADER PLATFORM UNDER THE TICKER CVX.US***