In This Article:
Energy major Chevron Corporation CVX has committed to partner with Hyzon Motors HYZN, according to a filing with the U.S. securities and Exchange Commission by the fuel-cell truck manufacturer.
Per the agreement, Chevron’s New Energies division and Hyzon Zero Carbon — a subsidiary of the New York-based company — will invest in Raven SR S1 LLC. A wholly owned unit of privately held renewable fuels producer Raven SR, Raven SR S1 LLC will "develop, construct, operate and maintain a solid waste-to-hydrogen generation production facility located in Richmond, California."
The deal entails Chevron to infuse $20 million in Raven, while Hyzon will shell out $10 million for around a 20% stake in the LLC.
Hyzon shares jumped more than 19% on the news. The developer of hydrogen-powered vehicles has had a torrid time of late, with a negative report from professional short-selling outfit Blue Orca Capital in 2021 and revenue recognition timing issues in China this year. With Hyzon yet to come up with quarterly earnings since the first quarter of 2022, the CVX collaboration news comes as some sort of positive for the embattled investors.
For CVX, the Raven SR alliance is another pointer to its growing commitment toward renewable and greener energy. The Zacks Rank #3 (Hold) company is one of the largest publicly traded oil and gas companies in the world, with operations in almost every corner of the globe.
Meanwhile, investors interested in the energy sector might look at operators like Nine Energy Service NINE and Patterson-UTI Energy PTEN, each carrying a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nine Energy Service: Nine Energy Service is valued at some $409.6 million. The Zacks Consensus Estimate for NINE’s 2022 earnings has been revised 1,325% upward over the past 60 days.
Nine Energy Service, headquartered in Houston, TX, delivered a 137.5% beat in Q3. NINE shares have surged 1,241% so far this year.
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.2%, on average.
Patterson-UTI is valued at around $3.5 billion. PTEN has seen its shares gain 101.1% in 2022.
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