Better Buy: Chevron vs. Pembina Pipeline
Comparing Chevron (NYSE: CVX) to Pembina Pipeline (NYSE: PBA) might come across as one of the more unexpected energy matchups. That's because Chevron is one of the largest integrated oil and gas titans, whereas Pembina Pipeline is mostly a Canadian midstream company.
But don't let their differences fool you. Over the past five years, Chevron's stock is the best-performing integrated oil and gas supermajor out of a cohort of six companies. Similarly, Pembina's stock is the second-best-performing out of 10 of the largest North American pipeline stocks, but the No. 1 performer over the past three years. Both companies have been crushing it, but which one is the better buy?
Although not the largest supermajor, Chevron has separated itself from the pack with its efficiency. In Q2 2019, Chevron had announced average cash flow breakeven at just $51 a barrel, the lowest of any supermajor. Chevron also flashed the lowest net debt ratio at 13.5%, and industry-leading earnings per barrel (EPB) of $2.66 for its downstream business. Although current earnings per barrel appear strong, Chevron has recently sold off large portions of its downstream business, leading to some uncertainty down the road.
Source Fool.com
