There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

December 16, 2008 - Chevron Corp. (CVX-NYSE) operates as an integrated energy company worldwide. The company's Petroleum operations include the exploration, development, production, and marketing of crude oil and natural gas.

Its chemical operations include manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant oil additives. The company also engages in coal mining, power generation, insurance, and real estate activities.

The company was founded in 1879. It was formerly known as Standard Oil Company of California and changed its name to Chevron Corporation in 1984. Further, it changed its name to Chevron Texaco Corporation in 2001 and to Chevron Corporation in 2005. Chevron Corporation is based in San Ramon, California.

Chevron set a new earnings record with its third quarter profits, showing $3.85 a share for three months, more than 100% better than the same quarter last year. For the period, a barrel of oil sold, on average, for $107, well above the $67 the black gold got in the previous year's quarter. On the natural gas side, 1000 cubic feet of natural gas rose by 59% to $8.64. Total profits were $1 billion for 3 months.

For the fourth quarter, the average earnings estimates by 13 analysts following the company, is $1.89, down from $2.25 last year. The earnings announcement will be on January 8, 2009. The full year should come in at $11.06, a strong increase from $8.35 in 2007. For all of 2009, analysts predict $7.14.

These numbers were all generated before the latest news from OPEC, that production of oil would be cut by 2 million barrels a day. With oil getting below $50 a barrel, the oligopoly was getting nervous. If those cuts stick, expect oil to head higher. So will earnings estimates for CVX.

No one thinks oil will get back to $145 a barrel, as it did earlier this year, but it's clear that OPEC is going to do what it can to keep the price above $45 even with a global recession. But if certain OPEC countries find their cash flows crimped by reduced production during an economic slowdown, there may be some breaks in the OPEC solidarity.

Chevron keeps drilling, as prices go up and down. With a strong balance sheet (debt is only 7% of capital and Value Line gives the company an A++ financial strength rating), CVX has spent $15.8 billion in the first nine months of this year for capital and exploratory programs. Most likely over $20 billion will be spent by the end of the year. Projects continue in Kazakhstan, Nigeria, the Middle East, Australia, and Canada. The company is also expanding its presence in the North Duri field in Indonesia and the Gulf of Mexico.

More numbers: Trailing P/E is 7 while the forward P/E is 11.2. Price to Sales is .6 while Price to Book is 1.85. Operating Margin for the last 12 months was 13.6% and Profit Margin was 8.8%. Return on Equity was a very strong 29.54%. Revenues for the last 12 months were $271.6 billion.

There is $11 billion of cash on the books. Total debt is $6.96 billion. Total debt to equity is .08. Current ratio is 1.20. Book value is $42.79. There are 2.03 billion shares outstanding and in the float. The annual dividend is $2.60 for a yield of 3.3%. The dividend takes 21% of earnings. The stock went ex-dividend on November 14 and paid on December 9.

Chevron has some great assets in the ground. The estimated present value of its reserves is $167.2 billion. It sells 4.4 million barrels of oil a day. Daily gross production in 2007 was 2.239 million barrels of oil and 4.414 billion cubic feet of natural gas. Its net proved reserves in December of 2007 were 8.589 billion barrels of oil and 22.480 trillion cubic feet of natural gas.

If you think oil and gas has hit bottom, then you'll want to focus some time and energy on CVX. It's the fourth largest oil company based on proven reserves. It's strong financially. There's a decent dividend (and rather safe). But watch out if OPEC breaks apart and one or more of its members needs revenues. The price of oil could go lower. Furthermore, alternative energy is being rapidly developed. While it's a small part of the auto industry now, with the push for independence from foreign oil and demands from Congress for more fuel efficient cars in exchange for loans, electric cars may quickly dominate new car sales within a few years.

Company Web site: www.chevroncorp.com

- Ted Allrich