Hedge Fund CEO: Maduro Overthrow ‘a Huge Long-Term Opportunity for Chevron’

Monday on Fox Business Network’s “Mornings with Maria,” Infrastructure Capital Advisors CEO Jay Hatfield predicted Chevron would be a beneficiary of Venezuelan dictator Nicolas Maduro’s removal from office.

“What about oil prices following the overthrow of Venezuelan dictator Nicolas Maduro,” host Maria Bartiromo said. “Energy stocks this morning are skyrocketing and we’ve been talking about Chevron, the only American company that is still in Venezuela. It is poised to win big here. This morning, the stock is up better than 6%, had been up close to 8% earlier. President Trump says the U.S. will run Venezuela with billions planned to invest and rebuild infrastructure and eventually boost production. Analysts expect oil prices could not move much in the near-term, but longer term, these are huge opportunities. Your thoughts, Jay, on the oil sector as potential investment?”

Hatfield replied, “So, I believe in dividend stocks, so our large-cap dividend fund. Their biggest holdings are Exxon and Chevron. So these are phenomenal companies, irrespective of the current events. Chevron has a huge advantage operating since they’ve never left. And keep in mind, 20 percent of the world’s oil reserves are held in Venezuela, but only 1 percent of the production. So they used to produce 3.5 million barrels. Now producing one. The only caveat you can see it already in the market, it’s not going to happen overnight. First, we need stability. And this is very heavy oil, so very hard to produce, very viscous, hard to refine.”

“So this is not going to happen overnight, but a huge long-term opportunity for Chevron, which is a phenomenal company,” he added. “So, you know, fitting into the theory we’ve been talking about, it’s OK to have other ideas besides just tech.”

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