Chevron Corp. jumped the most in almost two months in New York trading, with an analyst upgrading the company after it promised to defend its dividend.
The world’s third-largest oil explorer rose 4.6 percent to $92.82 at the 4 p.m. close, its biggest one-day increase since Jan. 14. Shares in the San Ramon, California-based company have climbed 3.2 percent so far this year, falling and rising along with crude-oil prices.
The company will cut spending on drilling rigs, oil platforms and other projects by more than a quarter over the next two years to ensure it has cash to support its $1.07 per share quarterly dividend, Chief Executive Officer John Watson told analysts at a conference Tuesday. On Wednesday, analyst Paul Sankey at Wolfe Research LLC upgraded Chevron to “outperform," saying the payments make the stock “highly attractive" relative to its price.
“Last year, it felt as if prices and margins were collapsing faster than the company could change the message," Sankey wrote. “At this meeting, CEO Watson got his mojo back."