New York, January 30 (FinanceEnquiry.com) - Analyst Michael Kay of S&P Capital IQ reiterates his STRONG BUY rating on the shares of Chevron Corporation (NYSE: CVX), while reducing his estimates for the company.
 
In a research note published on January 27, the analyst mentions that the shares of Chevron declined 2 percent after Q4 EPS of $2.58 that was short the estimates. The company's US refining margins have squeezed and throughputs fell 13 percent, whereas reserve replacements were 171 percent on $29 billion CapEx, substantially ahead of the 3-year average of 94 percent. Australia LNG and deepwater will result into a CapEx of $32.7 billion in 2012. The 69 percent of production comprise high margin liquids, and refining was weak, while reduced footprint may limit some volatility, the analyst adds. The EPS estimate for 2012 has been reduced from $13.65 to $13.35 and for 2013 it is initiated at $14.60.