Chevron uzavřel s Microsoftem 20letou smlouvu na dodávku plynu pro datové centrum pro AI v Texasu, kde bude pohánět turbíny GE Vernova o výkonu 2,7 gigawattu. Firma to bere jako test, ale vidí v tom platformu pro další růst.
Integrated energy outfit Chevron (CVX +1.92%) is looking beyond the traditional oil and gas business for growth opportunities. That's the chief takeaway from a late-June press release in which the company announced it was working with Microsoft to power one of its new artificial intelligence (AI) data centers in West Texas, bypassing local electric utilities.
This is just a taste, however, of the direction the energy company is moving in now that it has the option to do so.
Image source: Getty Images.
Adapting to the demands of the revolution It's not a complicated arrangement. Software powerhouse Microsoft's artificial intelligence data center in West Texas needs power. Rather than tapping a nearby utility for what may or may not be an adequate or affordable supply, the tech giant is installing 2.7 gigawatts' worth of natural gas power turbines made by GE Vernova, which will use gas supplied directly by Chevron for a contracted period of 20 years.
It's obviously not Chevron's usual business model. But these are unusual times. AI data center-driven demand for electricity is straining producers. So, operators are taking matters into their own hands, largely because they can. Reliable natural gas power turbines are now available at scale, and Chevron has the infrastructure in the region to make a direct natural gas supply feasible.
For now, the agreement looks more like a test than a new business venture, but that's apt to change eventually. As Chevron's president of new energies, Jeff Gustavson, commented in an interview following the announcement, "If we can get to a returns equation that works for our company and our shareholders, you can expect to hear more from us going forward." For clarity, Gustavson made a point of adding, "This does represent a platform for growth for us." High-opportunity areas include the Midwest, the Gulf Coast, the Rocky Mountains, and Utah -- all areas where the company's already got established infrastructure.
And it should pursue them. Although these so-called "behind-the-meter" natural gas-burning power plants aren't unheard of, they've also only scratched the surface of the underlying opportunity. For perspective on the sudden surge in demand, Bloomberg notes that roughly 100 gigawatts' worth of behind-the-meter gas power has been planned or permitted specifically for U.S. data centers, but only 2 GW is currently up and running. Separately but simultaneously, PwC believes AI-driven demand for natural gas could more than quintuple over the next 10 years, with much of it being directly burned by the end user rather than a utility company.
The more Chevron can steer this evolution, the better.
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Cool stories alone don't produce meaningful cash It's an exciting prospect to be sure, simply because the idea solves a very real problem that's only apt to grow before it starts to shrink. It's also just pretty cool to see companies collaborating creatively to come up with solutions that at one point would have been unthinkable. And, it's worth mentioning that Chevron is tinkering with man-made alternatives to natural gas, if and when that time comes.
Just don't let this be the chief reason you step into a stake. It will be years before this venture grows into something that could make a noticeable difference in Chevron's gas-and-oil-driven bottom line.
Chevron reportedly plans to sign early-stage deals Friday to invest in Iraqi oil fields and consider the construction of a pipeline connecting Iraq’s reservoirs to the Syrian coast as oil majors seek workarounds for the Strait of Hormuz.
As the US and Iran have renewed strikes in the Middle East, major oil producers – including Iraq – have been desperately searching for alternatives to the strait, a vital maritime route for 20% of the world’s oil supplies that has been effectively blockaded during the war.
Nations across the Persian Gulf have poured billions of dollars into new pipelines, rail corridors and energy storage hubs to skirt around the strait – and now Chevron is considering getting in on the action, according to the Wall Street Journal.
Chevron reportedly plans to sign early-stage deals in Iraqi oil fields. Anadolu via Getty Images The Houston, Tex.-based oil major is considering rebuilding a pipeline from Kirkuk, Iraq, to the Syrian port of Baniyas on the Mediterranean Sea, a senior Chevron official told the outlet.
An oil pipeline tracing along that route has been shut down for more than two decades after it was badly damaged in 2003 during the US’ invasion of Iraq.
Chevron will join a consortium of investors that plan to conduct studies to determine whether they should build a new pipeline in its place or update existing infrastructure, according to the exec.
The company has been in talks with the Iraqi government for 12 to 18 months and the preliminary deals are a “long ways from the finish line,” he said.
On Thursday, Iraqi Prime Minister Ali Al Zaidi visited Chevron’s headquarters in downtown Houston to meet a group led by Chevron Vice Chairman Mark Nelson.
The prime minister met with President Trump in the Oval Office on Tuesday.
“The United States is facilitating conversation between Iraq and Syria on future energy development projects and supports the growing diplomatic relationship between the two countries,” a senior Trump administration official told The Post.
Iraqi Prime Minister Ali Al Zaidi (above) met with President Trump in the Oval Office Tuesday. Graeme Sloan – Pool via CNP/Shutterstock Chevron confirmed it is discussing possible investments in two Iraqi oil fields, the Nasiriyah and West-Qurna-2.
“Chevron looks forward to sharing its expertise in successfully developing oil and gas projects to support Iraq in further developing its energy resources,” a spokesperson told The Post.
The company declined to comment on reported talks about a pipeline, saying it does not comment on third-party statements or commercial matters.
The news comes as strikes ramped up in the Middle East this week after President Trump announced a ceasefire with Iran was “over,” reversing declines in gasoline prices.
On Thursday, American diesel prices rose above $5 a gallon again, hitting an average price of $5.01, according to AAA.
Regular gasoline prices hit $3.94 a gallon Thursday – below its peak of $4.56 in the spring, but on the incline again and about 10 cents higher than this time last week.
Diesel prices rose above $5 a gallon again Thursday. Weston Hancock/SOPA Images/Shutterstock As the on-and-off blockade of the Strait of Hormuz has caused the worst-ever global energy supply disruption, experts have warned it could take many months for gasoline to fall below the $3 level – and that’s only if a permanent peace deal to keep the strait open is reached.
Trump said this week that the strait is reopened for all nations except Iran, but safety concerns remain as Tehran is still able to strike at commercial shipping vessels in the waterway.
Elevated energy prices have already started to weigh on households, but it has yet to be seen whether they will have a lasting inflationary effect – as economists warn higher fuel prices could hike costs for food, apparel, furniture and virtually anything that travels via truck.
Economic data released this week indicated higher energy prices have yet to fully bleed through to consumer goods – but Federal Reserve officials warned one good inflation report isn’t enough to dispel concerns.
The White House did not immediately respond to The Post’s request for comment.
Chevron v pátek podepíše s iráckou vládou memoranda o porozumění k rozvoji podílů v polích West Qurna 2 a Nassiriya. Dohoda má posunout podmínky ke konečnému převzetí West Qurna 2.
A Chevron logo at the Chevron building in Houston, Texas, U.S. August 19, 2025. REUTERS/Kaylee Greenlee Purchase Licensing Rights, opens new tab
SummaryCompaniesWest Qurna 2 currently produces about 460,000 barrels per dayFriday's preliminary agreement would progress commercial terms toward a final West Qurna 2 takeover deal, the executive saidChevron is also discussing pipeline routes to bypass the Strait of Hormuz, the executive saidHOUSTON, July 16 (Reuters) - Chevron will sign memorandums of understanding on Friday with the Iraqi government to advance the U.S. oil major's interests in the West Qurna 2 and Nassiriya oilfields, according to a senior Chevron executive.
The company is also continuing talks with Iraq to produce technical studies and evaluate potential pipeline routes to transport crude out of the country and bypass the Strait of Hormuz, the executive said.
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Iraqi Prime Minister Ali al-Zaidi, who took office in May, visited Chevron's Houston headquarters on Thursday as part of a five-day trip to the U.S., which included a meeting with President Donald Trump on Tuesday.
Iraq's government is seeking to secure U.S. partnerships during this week's visit to the U.S. to help boost its oil output. In February, Chevron moved into exclusive talks with Iraq for West Qurna 2, one of the world's largest oilfields that currently produces about 460,000 barrels per day.
The preliminary agreement on Friday will progress commercial terms and help lead to a final agreement for Chevron to take over the oilfield, the senior executive said.
Chevron and Iraq signed an agreement in principle last August to develop the Nassiriya oilfield project that consists of four exploration blocks in addition to the development of other producing oil fields.
Reporting by Sheila Dang in Houston; Editing by Nathan Crooks and Chizu Nomiyama
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Chevron uzavřel s Alinta Energy novou dlouhodobou smlouvu na dodávky 46 petajoulů plynu v letech 2027 až 2032. Plyn půjde z Gorgon, Wheatstone a North West Shelf Project.
Key Takeaways Chevron will supply 46 petajoules of gas to Alinta Energy from 2027 through 2032.CVX will source gas from Gorgon, Wheatstone and the North West Shelf Project.Chevron said Gorgon and Wheatstone supply about 40% of Western Australia's domestic gas needs. Chevron Corporation’s (CVX - Free Report) Australian affiliate, Chevron Australia Pty Ltd, has signed a new long-term natural gas supply agreement with Alinta Energy, reinforcing its commitment to supporting Western Australia's (WA) energy security. Beginning in July 2027, Chevron will supply 46 petajoules of natural gas over five years from its interests in the Gorgon and Wheatstone facilities, as well as the North West Shelf Project.
The agreement extends a partnership spanning more than four decades and ensures a reliable source of natural gas for households, businesses and industrial customers across Western Australia. It also highlights the growing importance of long-term supply contracts as the state balances rising energy demand with the transition to a lower-carbon future.
Five-Year Agreement Secures Reliable Gas SupplyUnder the agreement, Chevron will provide Alinta Energy with 46 petajoules of natural gas between 2027 and 2032. The supply will come from three of Western Australia's most significant gas assets — Gorgon, Wheatstone and the North West Shelf Project.
The long-term contract provides Alinta Energy with greater certainty over its fuel portfolio while helping ensure stable energy supplies for its retail and commercial customers.
CVX Is Supporting Western Australia's Energy SecurityChevron emphasized that its major LNG developments continue to play a vital role in the state's domestic energy market. According to the company, the Gorgon and Wheatstone facilities together supply approximately 40% of Western Australia's domestic gas needs.
Reliable natural gas remains essential for electricity generation, mining operations and other energy-intensive industries. By securing long-term supply, the agreement supports the continued availability of dependable and affordable energy throughout the state.
A Partnership Built Over Four DecadesThe latest agreement builds on a long-standing relationship between Chevron and Alinta Energy that has existed for more than 40 years. Both companies highlighted the importance of trusted partnerships in maintaining consistent gas supplies and supporting customers during an evolving energy landscape.
For Alinta Energy, access to long-term production from established projects strengthens its ability to serve households, businesses and industrial users while adapting to changing energy demands.
A Long-Term Commitment to Reliable Gas SupplyThe new agreement demonstrates Chevron's continued focus on maximizing the value of its Australian gas portfolio while supporting domestic energy needs. At the same time, it provides Alinta Energy with greater supply certainty from proven gas projects.
As Western Australia continues to require reliable energy alongside its transition toward lower-emission sources, partnerships like this are expected to remain an important part of maintaining energy security and supporting economic activity across the region.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Currently, CVX carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Suncor Energy Inc. (SU - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Imperial Oil Limited (IMO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alberta-based Suncor Energy is Canada's premier integrated energy company. The company's operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. The Zacks Consensus Estimate for SU’s 2026 earnings indicates 114.2% year-over-year growth.
Houston, TX-based Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western United States. Its integrated platform sources crude, refines transportation fuels and distributes products. The Zacks Consensus Estimate for PARR’s 2026 revenues indicates 123.8% year-over-year growth.
Calgary-based Imperial Oil is one of the largest integrated oil companies of Canada, mainly engaged in oil and gas production, petroleum products refining and marketing and chemical business. The Zacks Consensus Estimate for IMO’s 2026 earnings indicates 69.2% year-over-year growth.
Exxon Mobil ve 2. čtvrtletí čeká nárůst zisku o 5 miliard USD na 15,7 miliardy USD, ale ropní giganti neplánují výrazně zvyšovat těžbu. Místo toho sázejí na zpětné odkupy akcií a snižování dluhu.
The US energy industry is bracing for a huge windfall from the Iran war, but oil majors aren’t planning to ramp up drilling – even as the Trump administration pushes them to lower gasoline costs.
President Trump has repeatedly pressured American energy giants to “Drill, baby drill!” and recently threatened to investigate the industry for price-gouging as Americans feel pain at the pump – a concern for Republicans ahead of the midterms.
But oil majors are reluctant to build out more rigs and wells, resisting White House pressure as they claim their bumper profits are just a temporary boost.
The US energy industry is bracing for a huge windfall – but oil majors are hesitant to ramp up production. USA TODAY Network via Reuters Connect “I think the industry is strong,” Joe Adamski, managing director of ProcureAbility, a supply chain consultancy, told The Post. “We are sitting at a very good position compared to the rest of the world … [but] oil companies are looking at it and saying this is a blip on the radar.”
In a preview of its second-quarter earnings, Exxon Mobil said this week it could see a $5 billion jump in profits – pushing adjusted earnings to $15.7 billion, or triple the previous quarter.
Experts said Chevron and Shell are also expected to report blowout second-quarter earnings later this month, similar to their first-quarter results – which came in 45% and 37% higher than expected, respectively.
“It’s going to be extra billions of dollars, as we saw with Exxon Mobil,” Jeff Krimmel, founder of Krimmel Strategy Group, told The Post. “It’ll be a multibillion gain across the industry just based on all the disruptions that continue to exist that really peaked toward the end of the second quarter.”
Big markups The huge windfall for US oil majors comes as attacks on vessels and airstrikes in the Middle East have largely choked off the Strait of Hormuz, a vital maritime route for 20% of the world’s oil. That has sent demand skyrocketing for alternatives like US crude, which peaked above $110 a barrel in April.
Markups on US crude jumped to an all-time high – as much as an extra $30 to $40 a barrel – as Asian and European refiners competed for the limited supply while scrambling to replace Middle Eastern oil stuck in the strait.
As of Friday, US crude oil futures traded at $71.25 a barrel while Brent crude hit $75.61 – set to end the week higher after Trump said the ceasefire with Iran was “over” and military strikes near the Persian Gulf again derailed traffic through the strait.
Trump has been pushing for more fossil fuel output, repeatedly urging companies to expand drilling operations and declaring a national energy emergency on the first day of his second term in January 2025.
US crude oil production hit a new record in 2025, according to the US Energy Information Administration. Bloomberg via Getty Images Last year, the Interior Department issued an aggressive proposal to expand offshore drilling near Florida and along the entire California coastline – fueling fierce pushback from local politicians fearful of oil spills.
In March, the Trump administration exempted drilling in the Gulf of America from the Endangered Species Act, citing “national security” concerns about oil supplies amid the war in Iran. Conservationists have decried the move, citing a risk to wildlife, particularly endangered whales.
Despite the policy changes, oil majors have been reluctant to spend their profits on building out more rigs and wells, as they expect demand to normalize quickly once the war ends unless there is severe lasting damage.
In a worst-case scenario for the oil industry, OPEC – the world’s most powerful oil cartel – could fall apart, and dominant Saudi Arabia could ramp up its energy production too far for others to compete, potentially sending oil as low as $40 a barrel, according to a CNN report.
Efficiencies, not new drilling US giants’ stance does not mean production has been slowing. US crude oil production hit a new record in 2025 of 13.6 million barrels per day according to the US Energy Information Administration. By comparison, the entirety of Europe, excluding Russia, reportedly produced about 4 million barrels per day – or less than 4% of the global share.
However, it was efficiencies like better equipment and technology – not extra drilling – that helped boost production last year, according to Krimmel.
In a preview ahead of its second-quarter earnings, Exxon Mobil said this week that it could see a jump of $5 billion. Christopher Sadowski The number of active rigs and wells that were drilled in the US actually dipped, according to the EIA.
“We saw oil prices get above $90, even $100 temporarily during this war, and there was no huge rush to add rigs, to add production,” Krimmel said. “We already had a production surplus going into the war. A lot of analysts are expecting to reapproach that surplus as these flows normalize now.”
In May, Exxon Mobil and Chevron said that despite the Iran war, they did not intend to drill much more oil than initially planned.
Adamski said fears of political blowback are also likely keeping oil majors from building out new rigs, an expensive process that can take years and face opposition from environmentalists.
“They are sensitive to being in a political storm, that they would have a target on their back and Congress will start talking again about windfall profit taxes and things like that,” Adamski said.
“So they want to avoid putting in the appearance that they are taking advantage of this, so instead they’re doing share buybacks, they are paying down debt. They’re doing things like that.”
Pain at the pump But oil majors’ massive profits could draw scrutiny as the war in Iran eats into wallets, costing Americans roughly $1,000 per household in higher fuel, food and other expenses, according to economist Mark Zandi.
Trump has been eager to lower gasoline prices ahead of the November midterms, most recently heralding a new chain of gas stations on social media that are selling gas for $3.479 a gallon – well below market prices and wholesale costs.
The White House said these “Freedom Fuel” stations, which are mostly located near Philadelphia and in southern New Jersey, are run by a private company with no government support. It is unclear who is running the stations and for how long.
Last week, the Department of Justice asked state attorneys general to investigate potential antitrust violations by energy giants – after Trump accused them of price-gouging.
“I have instructed the DOJ to immediately start looking into this. Gasoline prices better start going down a lot faster than what I’m seeing!” the president wrote in a Truth Social post in June.
Gas has been slower to come down than oil, hitting $3.88 a gallon Friday after peaking at $4.56 this spring, according to AAA – but experts said that is a normal reaction since there is typically a lag between gasoline and oil prices.
“It really is just politics. The public gets angry when gas prices go up, and politicians need to be seen as being responsive to that anchor,” Krimmel told The Post.
“That’s about the extent of the action that you’ll see out of the federal government…There is zero indication that anything nefarious is happening there.”
Chevron uzavřel s Microsoftem 20letou smlouvu na dodávku elektřiny pro datové centrum v západním Texasu. Projekt Kilby má po etapách dodat 2,67 GW od roku 2028.
Key Takeaways Chevron signed a 20-year deal to power a Microsoft West Texas data center with a gas-fired facility.Chevron expects Project Kilby to deliver 2.67 GW in phases from 2028 with mid-teen return targets.Chevron posted higher Q1 2026 production and returned $6B via dividends and buybacks during the quarter. Chevron Corporation (CVX - Free Report) is expanding beyond its traditional oil and gas business by entering one of the fastest-growing markets in the global economy — artificial intelligence (“AI”) infrastructure. The company recently signed a 20-year power purchase agreement with Microsoft Corporation (MSFT - Free Report) to develop a dedicated natural gas-fired power facility for a West Texas data center. The deal highlights CVX's strategy to capitalize on rising electricity demand from AI data centers while creating a new source of long-term cash flows.
The announcement follows Chevron's solid first-quarter 2026 operating performance, supported by higher production from legacy Hess assets, the Permian Basin and the Gulf of America. While the Microsoft partnership opens an entirely new growth avenue, investors must assess whether this opportunity is significant enough to justify buying the stock today.
Chevron's Microsoft Deal Creates a New Growth PlatformUnder the agreement, CVX's subsidiary, Energy Forge One, will develop Project Kilby, a co-located natural gas-fired power facility dedicated to supplying electricity to a Microsoft-operated data center in West Texas under a 20-year power purchase agreement.
Project Kilby is expected to provide approximately 2.67 gigawatts of generating capacity through a phased buildout, with first power targeted for 2028. Management expects the project to generate diversified cash flows that are largely independent of oil and natural gas price cycles while targeting mid-teen investment returns. By supplying electricity directly to the MSFT-operated data center rather than the regional grid, CVX also expects greater reliability for AI workloads.
For CVX, the agreement represents more than a single infrastructure project. It reveals how the company can leverage its Permian natural gas resources, engineering expertise and project execution capabilities to participate in the long-term growth of AI infrastructure. If CVX secures similar agreements with additional hyperscale customers, this business could become a meaningful complement to its traditional upstream operations.
Chevron's Core Business Remains StrongBeyond the Microsoft agreement, Chevron continues to deliver solid operational results. During the first quarter of 2026, worldwide production increased 15% year over year to 3.86 million barrels of oil equivalent per day, while U.S. production climbed 24%, driven by the Hess acquisition and continued growth in the Permian Basin and the Gulf of America.
The company also maintained one of the industry's strongest shareholder-return programs, distributing $6 billion through dividends and share repurchases during the quarter. This marked CVX's 16th consecutive quarter of returning more than $5 billion to its shareholders. Management also reaffirmed its capital spending guidance and structural cost-reduction target of $3-$4 billion by the end of 2026.
These strengths give CVX the financial flexibility to invest in long-duration infrastructure projects without compromising shareholder returns.
ExxonMobil and Shell Could Also Benefit From AI DemandCVX is not the only integrated energy company seeking to benefit from AI-driven electricity demand.
ExxonMobil (XOM - Free Report) is leveraging its extensive natural gas resources while evaluating opportunities to provide lower-carbon electricity solutions for hyperscale data centers. Like CVX, ExxonMobil believes AI-driven power demand could become an important source of long-term natural gas consumption.
Meanwhile, Shell plc (SHEL - Free Report) is approaching the opportunity through its integrated gas and LNG business. As one of the world's largest LNG suppliers, Shell is well positioned to benefit from rising natural gas demand as AI data centers require reliable, around-the-clock electricity. Shell's global LNG portfolio provides additional flexibility to serve markets experiencing rapid AI infrastructure expansion.
We believe Chevron is among the first integrated energy companies to secure a long-term commercial agreement to supply dedicated power for a hyperscale AI data center.
Risks Should Not Be IgnoredAlthough Project Kilby strengthens Chevron's long-term growth outlook, the project remains in its early stages. Final investment approval is expected later this year, while commercial operations are targeted for 2028. Key uncertainties continue to include construction costs, execution risks, regulatory approvals, customer expansion and potential risks associated with an AI bubble.
In addition, the project's financial contribution is likely to remain modest relative to CVX's overall earnings during the initial years. The company's near-term results will continue to depend primarily on crude oil prices, refining margins and upstream production growth.
Valuation Remains Reasonable Despite AI Growth PotentialFrom a valuation perspective, CVX trades at a forward P/E ratio of about 12.22, compared with ExxonMobil at 12.31 and Shell at 8.52. This makes Shell the least expensive among the three on an earnings basis.
Image Source: Zacks Investment Research
Analysts Expect Steady Earnings GrowthOver the past 60 days, the Zacks Consensus Estimate for CVX's earnings per share has increased 1.73% for 2026 and 4.95% for 2027.
Image Source: Zacks Investment Research
Over the past year, CVX’s shares have gained roughly 13.8%, while ExxonMobil has advanced about 20.7% and Shell has risen approximately 13.5%.
Share Price Performance Comparison
Image Source: Zacks Investment Research
Is CVX Stock a Buy?The partnership with Microsoft gives Chevron an attractive long-term growth narrative by connecting one of the world's largest energy companies with one of the fastest-growing sources of electricity demand. Combined with strong production growth, disciplined capital allocation and consistent shareholder returns, Chevron is building an additional avenue for growth beyond its traditional energy business.
However, the financial impact of Project Kilby remains several years away and CVX continues to face the commodity-price volatility that affects the broader energy sector. With a Zacks Rank #3 (Hold), CVX appears suitable for long-term investors seeking exposure to a financially strong integrated energy company that is gradually expanding into AI infrastructure. Investors may prefer to wait for additional execution milestones before becoming more aggressive on the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coca-Cola, American Express a Chevron v posledních šesti měsících zvýšily dividendy. Všechny tři jsou dlouholeté Buffettovy pozice s odlišným profilem výnosu a růstu.
Warren Buffett spent decades assembling Berkshire Hathaway’s equity book around a simple principle: Own high-quality businesses that produce predictable cash flow and share it with owners. Three of the longest-tenured holdings in that portfolio, Coca-Cola, American Express, and Chevron, all pushed their dividends higher over the past six months, and each offers a distinct income and growth profile heading into the back half of 2026. Here’s why July is a reasonable window for investors to examine each one.
Coca-Cola (KO) Coca-Cola (NYSE:KO | KO Price Prediction) has been the archetypal Buffett income holding for decades, and the fundamentals still look sturdy. The company delivered $816 million in dividend income to Berkshire in 2025 alone, on a cost-basis yield that Berkshire’s disclosures pegged at 65%. That is what compounding at scale looks like.
Q1 2026 results reinforced the thesis. Coca-Cola posted EPS of 86 cents against the 81 cents expected, with revenue of $12.47 billion up 12.1% year over year and organic revenue growth of 10%. Operating margin expanded to 35.0% from 32.9%, and Coca-Cola Zero Sugar volume grew 13%. Management guided FY2026 organic revenue growth to 4-5% and comparable EPS growth to 8-9%.
The current quarterly dividend sits at 53 cents per share, up from 51 cents in 2025, extending a streak of annual increases that now stretches back more than six decades. Shares traded around $83.93 on July 8, up more than 21% year to date. The forward P/E of 26 is not cheap and a dividend yield of 2.53% reflects that.
The risk: FX headwinds, a $960 million BODYARMOR impairment, and roughly 4% headwind from divestitures including the pending Coca-Cola Beverages Africa sale can weigh on reported growth even as the underlying business hums.
American Express (AXP) American Express (NYSE:AXP) is the growth engine of the Buffett dividend trio. The company recently raised its quarterly dividend from $0.82 to $0.95 per share, roughly a 16% bump, and Berkshire collected $479 million in AXP dividend income during 2025 on a 44% cost-basis yield. The stock has gained nearly 125% since the start of 2023, elevating its weight in Berkshire’s equity portfolio.
Q1 2026 numbers were strong across the board. AXP reported EPS of $4.28 versus $3.99 expected, revenue of $18.91 billion, and net income of $2.97 billion, up 15%. Billed business hit $428.0 billion, and card member spending climbed 10%, the highest quarterly growth in three years. Net card fee revenues grew double digits for a 30th consecutive quarter. The write-off rate improved to 2.0% from 2.1%. Management reaffirmed FY2026 guidance of 9% to 10% revenue growth and EPS of $17.30 to $17.90.
CEO Stephen J. Squeri said, “We had a very strong start to the year, reflecting continued momentum across our premium customer base.” Shares traded around $337.34 on July 8 after an 8.02% rally over the past month, with a forward P/E of 20 and analyst target of $366.58.
The risk: Macro and geopolitical uncertainty, potential credit card interest rate caps, and rising variable engagement costs could compress margins if premium spending slows.
Chevron (CVX) Chevron (NYSE:CVX) is the highest-yielding name in this group and the one most tied to the commodity cycle. The quarterly dividend was recently raised to $1.78 per share, up from $1.71, extending a 39-year streak of annual increases. Trailing yield sits near 4.08%.
Q1 2026 marked Chevron’s sixth consecutive EPS beat. Adjusted EPS came in at $1.41 versus 97 cents expected, a 45.56% beat. Worldwide net oil-equivalent production jumped 15% to 3,858 MBOED, powered by the Hess acquisition and record U.S. output above 2 million bpd for a third straight quarter. Chevron repurchased $2.5 billion in Q1, its 16th consecutive quarter returning more than $5 billion to shareholders. In 2025 alone, the company returned $27.1 billion to shareholders.
Wolfe Research upgraded CVX to Outperform with a $210 price target on July 6, citing Guyana as a near-term free cash flow catalyst. CEO Mike Wirth said, “Chevron delivered solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution.” Shares traded around $175.66 on July 8, still up nearly 13% year to date despite a roughly 17% pullback from their 2026 high.
The risk: Citigroup sees Brent falling to $60–$65/barrel by year-end, and Goldman Sachs forecasts a 3 million bpd global oil surplus by 2027. Political friction in California and Venezuela operational uncertainty add to the volatility.
What to Watch Next Each of these Berkshire mainstays offers a different flavor of the same underlying thesis: durable brands, disciplined capital returns, and dividends that keep climbing. Coca-Cola gives defensive stability, American Express supplies dividend growth with premium-consumer torque, and Chevron delivers the highest current yield with commodity optionality. Upcoming Q2 earnings reports across all three will be the next major test.
Chevron Australia uzavřela s Alinta Energy pětiletou smlouvu na dodávky zemního plynu ze Západní Austrálie. Od července 2027 dodá 46 petajoulů z projektů Gorgon, Wheatstone a North West Shelf.
A Chevron logo at the Chevron building in Houston, Texas, U.S. August 19, 2025. REUTERS/Kaylee Greenlee Purchase Licensing Rights, opens new tab
CompaniesJuly 10 (Reuters) - Chevron Australia (CVX.N), opens new tab said on Friday it has signed a long-term agreement with energy retailer Alinta Energy to supply natural gas from its Western Australian portfolio.
Chevron said starting July 2027 it will supply 46 petajoules of gas to its long-standing partner Alinta Energy over a five- year period from across its equity interests in the Chevron-operated Gorgon and Wheatstone facilities, and the North West Shelf Project.
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"Following almost a decade in operation, Gorgon and Wheatstone have become pillars of energy security for the state and together provide approximately 40 percent of WA’s domestic gas supply," Chevron Australia President Balaji Krishnamurthy said in a press release.
Singapore's Sembcorp Industries (SCIL.SI), opens new tab acquired Australian gas and electricity provider Alinta Energy for an enterprise value of A$6.5 billion ($4.32 billion) last year.
Reporting by Swati Verma in Bengaluru; Editing by Kim Coghill
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Chevron umožní rivalům koupit jeho chemickou technologii surfaktantů prostřednictvím společnosti ZL Chemicals, která má zvýšit těžbu z břidlicových vrtů. Podle firmy technologie zvýšila první roční produkci nových vrtů až o 20 %.
Item 1 of 2 A sample of shale rock, which Chevron uses to test its chemical surfactant technology, is shown in this handout photo provided by Chevron on July 7, 2026. Chevron/Handout via REUTERS
[1/2]A sample of shale rock, which Chevron uses to test its chemical surfactant technology, is shown in this handout photo provided by Chevron on July 7, 2026. Chevron/Handout via REUTERS Purchase Licensing Rights, opens new tab
SummaryCompaniesZL Chemicals will sell Chevron's surfactants to other oil producersChevron said surfactants improved first-year output in new wells by up to 20%Average shale oil recovery across industry is 10%HOUSTON, July 8 (Reuters) - Chevron (CVX.N), opens new tab will allow rival oil producers to buy a chemical technology it developed to boost production from shale wells, the company said on Wednesday, as part of a broader push to increase U.S. oil output.
The move comes as the U.S. shale industry, which transformed global energy markets nearly 20 years ago through the fracking boom, grapples with declining well productivity, which experts say is pushing companies either to drill more wells or adopt new technology to sustain output.
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Chevron said it will license its chemical surfactants technology to chemicals manufacturer ZL Chemicals, which will oversee the sales process to other oil companies.
The chemicals that are being licensed to ZL have improved production from newly drilled wells by up to 20% during the first year, and also reduced production decline in existing wells by between 5% and 8%, Chevron said.
"With constraints on energy in the world today, there's a call on oil and gas companies to get more energy to market," Chevron's Chief Technology and Engineering Officer Ryder Booth said in an interview. "This is a way that we can answer the call to help boost production."
U.S. President Donald Trump recently urged oil companies, including Chevron and ExxonMobil (XOM.N), opens new tab, to increase oil output and help bring down gasoline prices during the U.S.-Israeli war with Iran.
IMPROVING OIL RECOVERYChemical surfactants can help reduce damage to the shale formation from the fracturing process and act similarly to soap, cleaning out particles that can get lodged in cracks in the shale rock and prevent oil from flowing. The chemicals then aid the separation of the oil from the underground rock so that it can more easily reach the surface.
During a recent Reuters tour of a Chevron technology lab in Houston, researchers showed a glass vial of crude oil that clung to the sides of the bottle when shaken around.
In another vial that contained both crude and chemical surfactants, the oil flowed easily through the bottle without sticking to the glass, and the oil eventually separated from the surfactants, illustrating how the process can help oil detach from shale rock.
Industry experts say the oil recovery rate in shale is just 10%, with the industry leaving the remaining 90% in the ground because technology is not yet advanced enough to squeeze the rest of the oil out of tight, compacted rock.
Improving the recovery rate is critical because the best drilling areas have been tapped out over time.
"We're at the point where big gains are not there anymore," said Bob Fryklund, chief upstream strategist at S&P Global Energy, though he added that technology advancements have helped the oil industry consistently beat forecasts.
In addition to its own wells, Chevron also holds a royalty interest in some wells in the Permian Basin that are operated by other companies. Licensing the previously proprietary chemical technology means the company could benefit from higher oil production across the top U.S. oilfield.
"This helps unlock production at a bigger scale beyond just the Chevron-operated areas," Booth said.
The company will begin testing a new version of the chemicals technology in the third quarter, he added.
Reporting by Sheila Dang in Houston; Editing by Nathan Crooks and Sonali Paul
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Tanker Chevron Yasa Polaris přepravující ropu pro CPC byl u ruského pobřeží Černého moře zasažen dronem. Chevron uvedl, že posádka je v bezpečí a vývoz z Kazachstánu nebyl ovlivněn.
CompaniesMOSCOW, July 8 (Reuters) - Chevron's (CVX.N), opens new tab Yasa Polaris oil tanker, used for Caspian Pipeline Consortium shipments, was attacked by a drone off Russia's Black Sea coast, two industry sources said on Wednesday.
Chevron said on Monday it was aware of an incident with a vessel heading to the Caspian Pipeline Consortium's loading facilities near Russia's Black Sea port of Novorossiysk and the crew was safe, while exports from Kazakhstan were not affected.
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The Chevron-led Tengizchevroil oil company is the major exporter of CPC Blend oil sourced mainly from a giant Tengiz oil field it operates in Kazakhstan.
Yasa Polaris is an oil tanker built in 2022 and able to carry about 160,000 metric tons of oil, according to LSEG data. The vessel is managed by Yasa Holding registered in Turkey. The shipmanager did not immediately answer a Reuters request for a comment.
Ukraine has targeted the CPC oil terminal and vessels carrying oil in the Black Sea area many times since the start of the war in 2022. Last year one of single point moorings at the CPC terminal was heavily damaged in an attack.
The Caspian Pipeline Consortium plans to export about 1.6 million barrels per day of CPC Blend crude in July, down from around 1.7 million bpd planned for June after drone damage to a Russian gas facility meant output had to be reduced, two trading sources said.
Reporting by Olesya Astakhova in Moscow and Ron Bousso in London. Editing by Mark Potter and Louise Heavens
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Exxon Mobil a Chevron míří k nejsilnějším čtvrtletním ziskům za roky, tažené vyššími cenami ropy a silnými rafinačními maržemi. Trump zároveň tlačí na ropný průmysl, aby před listopadovými mezivolbami snížil ceny benzínu.
America’s biggest oil companies are poised to post their strongest quarterly earnings in years — as President Donald Trump has been ramping up pressure on the industry to lower gas prices ahead of November’s midterm elections.
Exxon Mobil and Chevron are expected to report second-quarter profits that are more than three times higher than in the first three months of the year, fueled by a surge in crude prices after the US-Israeli conflict with Iran disrupted global energy markets, Reuters reported.
LSEG estimates project Exxon will earn roughly $15.9 billion in adjusted net income, while Chevron is forecast to post about $9.9 billion.
The anticipated windfall could create political headaches for the White House, which has made lowering fuel costs a priority as drivers continue to face elevated prices at the pump.
Exxon Mobil is expected to report second-quarter profits that are more than triple its first-quarter earnings, according to analyst estimates. Christopher Sadowski for NY Post “Gasoline Retailers must get their Prices down, IMMEDIATELY!” Trump wrote in a June 29 social media post.
Although benchmark crude has largely retreated to levels seen before the conflict, gasoline prices remain significantly higher.
Analysts attribute the disconnect to tight fuel inventories, strong export demand and unusually high refining margins rather than crude prices alone.
The administration has intensified scrutiny of the industry, with the Justice Department examining potential gasoline price gouging.
Treasury Secretary Scott Bessent has also warned refiners and producers that additional administrative measures remain possible if retail prices fail to fall.
Behind the scenes, oil industry lobbyists have increased outreach to lawmakers and administration officials as companies seek to counter criticism over fuel prices.
Chevron is forecast to benefit from higher refining margins and robust fuel export demand during the second quarter. Weston Hancock/SOPA Images/Shutterstock Industry executives argue they have only limited control over what consumers ultimately pay, noting that refining costs, transportation, marketing expenses and taxes account for much of the final price.
Trade groups echoed that argument, saying gasoline prices are influenced by numerous factors beyond crude oil, including regulatory requirements such as renewable fuel mandates.
“Gasoline prices don’t move in lockstep with crude oil, especially during a major global disruption affecting supply, refining and inventories,” Bethany Williams, a spokesperson for the American Petroleum Institute, told Reuters.
Analysts expect the second quarter to produce the industry’s strongest results since 2022, when Russia’s invasion of Ukraine sent energy markets soaring.
Gasoline prices remain elevated even as crude oil has retreated to near pre-conflict levels. John McCoy for CA Post Much of the earnings growth is being driven by a sharp rebound in refining profitability.
According to energy advisory firm TPH, gasoline refining margins averaged about $25 per barrel during the quarter, while diesel margins climbed to roughly $45 per barrel — their highest levels since mid-2022.
President Trump has pressed oil producers to lower gasoline prices ahead of the November midterm elections. AP Photo/Julia Demaree Nikhinson Strong overseas demand for US fuel exports further boosted refiners after supply disruptions abroad.
Despite continued frustration among motorists over gasoline prices, analysts at BMO Capital Markets expect the major oil companies to keep prioritizing shareholder returns through expanded stock buybacks rather than increasing production.
Industry executives maintain that profits naturally rise and fall with market cycles, arguing that periods of high earnings often follow times when companies absorb significant financial risk during weaker markets.
Chevron vyplácí forwardový dividendový výnos 4,2 % a zvyšuje dividendu už 39 let v řadě. Firma díky diverzifikaci a novým projektům očekává růst produkce ropy a plynu o 2 % až 3 % ročně do roku 2030.
Chevron (CVX 1.61%), one of the world's largest integrated energy companies, pays a forward dividend yield of 4.2%. It's raised its dividend annually for 39 consecutive years, putting it on track to become a Dividend King if it maintains that streak for 50 years in a row. Let's see why Chevron will remain a reliable income stock even as oil prices endure some volatile swings.
Image source: Getty Images.
What sets Chevron apart from its competitors? Chevron owns upstream exploration and extraction, midstream pipeline infrastructure, and downstream refining and chemical production businesses.
When oil prices rise, upstream businesses flourish as their revenue growth outpaces their expenses -- but downstream businesses can struggle with rising input costs. Declining oil prices can help downstream companies but hurt upstream ones. Midstream companies, which merely charge tolls for using their pipelines, can generate stable profits in both environments.
Chevron's scale and diversification across all three markets make it a more reliable, all-weather play on the energy market than stand-alone upstream, midstream, and downstream companies. It has a presence in 180 countries, but most of its oil and natural gas comes from the U.S., Kazakhstan, and Australia rather than the volatile Middle East.
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Why is Chevron a reliable dividend stock? Over the past 12 months, Chevron spent 95% of its free cash flow (FCF) on its dividends. That high cash dividend payout might seem like a red flag, but the energy giant has plenty of ways to generate more cash. It's expanding its Tengiz Field in Kazakhstan, upgrading its main field in the Permian Basin, launching new deepwater projects in the Gulf of Mexico, increasing its natural gas production in Australia, and ramping up its presence in Guyana, one of the world's fastest-growing oil regions, through its recent acquisition of Hess.
Chevron expects those catalysts to boost its oil and gas production by 2%-3% annually through 2030. To achieve that expansion without crushing its margins, it aims to reduce its structural costs by $3 billion to $4 billion by the end of 2026. Analysts expect its adjusted EPS to nearly double this year, yet its stock still looks like a bargain at 11 times forward earnings.
Chevron's stock declined over the past month as oil prices pulled back, but it should easily weather the downturn and continue to raise its dividends. It's been a reliable income stock for nearly four decades, and it will remain a top energy dividend play for the foreseeable future.
Chevron zvažuje další projekty napájení datových center v USA kromě projektu Project Kilby, aby využil rostoucí poptávku po elektřině pro AI. První elektřina z projektu Project Kilby má přijít v roce 2028.
Key Takeaways Chevron is evaluating U.S. data center projects beyond Project Kilby to meet rising AI electricity demand.CVX plans natural gas-fired facilities in multiple regions, with Project Kilby targeting first power in 2028.Chevron sees dedicated power projects as a potential long-term revenue stream beyond commodity prices. Per Reuters, Chevron Corporation (CVX - Free Report) is expanding its ambitions in the fast-growing data center power market by exploring additional projects across the United States. Building on the momentum of Project Kilby, the company is evaluating opportunities in several strategic regions to support the rapidly increasing electricity demand driven by artificial intelligence (AI) and cloud computing.
With abundant natural gas resources, proven energy infrastructure expertise and a growing pipeline of potential customers, Chevron is positioning itself as a key provider of dedicated power solutions for next-generation digital infrastructure.
Building on the Success of Project KilbyProject Kilby represents Chevron's first dedicated natural gas-fired power project designed specifically for a hyperscale data center. The 2.67-gigawatt facility will supply electricity to Microsoft's data center campus in Pecos, TX, with enough generating capacity to power a city the size of San Francisco.
The project reflects Chevron's strategy of combining its extensive energy development experience with growing demand from technology companies seeking reliable, large-scale power sources for AI workloads.
Chevron expects to make a final investment decision by the end of the year, while the first electricity from Project Kilby is anticipated in 2028. The facility also has the potential to expand beyond its initial capacity as future demand increases.
Chevron Is Exploring New Growth Opportunities NationwideFollowing Project Kilby, Chevron is actively evaluating similar opportunities in several regions, including West Texas, the Midwest, the Gulf Coast and areas near Colorado's Rocky Mountains. The company is also considering projects in Utah, where it already operates a hydrogen facility.
Chevron has indicated that future developments could involve both Microsoft and other technology customers, depending on project economics and commercial viability. The company believes multiple locations across the country offer the right combination of energy resources, infrastructure and customer demand to support dedicated data center power facilities.
Natural Gas Supports Reliable AI InfrastructureAs AI adoption accelerates, reliable electricity has become one of the biggest challenges facing data center expansion. Chevron believes natural gas offers an effective solution, backed by its abundant domestic supply, operational flexibility, and ability to provide continuous, dispatchable power.
Unlike intermittent energy sources, natural gas generation can quickly respond to changing electricity demand while maintaining stable operations. This reliability is particularly valuable for data centers, where uninterrupted power is essential to support AI processing, cloud services and other digital workloads.
CVX Is Balancing New Opportunities With Existing OperationsWhile expanding into dedicated power generation, Chevron continues to prioritize the energy needs of its own operations. The company evaluates new investments across its broader business to ensure projects supporting external customers do not compromise the reliability of power required for activities such as drilling operations and compression infrastructure in the Permian Basin.
This enterprise-wide approach allows Chevron to pursue emerging business opportunities while maintaining operational efficiency across its core energy portfolio.
Creating a New Long-Term Revenue StreamBeyond supporting growing electricity demand, data center power projects provide Chevron with an opportunity to diversify its revenue sources. Dedicated power generation offers income that is less directly exposed to fluctuations in oil and natural gas commodity prices, creating a potentially more stable long-term business segment.
Although industry analysts believe it is still too early to determine the financial impact of these projects, Chevron continues to advance its plans as demand for AI infrastructure grows across the United States.
Chevron Looks Beyond Project KilbyThe rapid expansion of AI and cloud computing is reshaping electricity demand, creating significant opportunities for energy providers capable of delivering reliable, large-scale power. Chevron's strategy extends well beyond Project Kilby, with multiple regions under evaluation for future developments.
By leveraging its natural gas resources, project execution capabilities and established energy infrastructure, Chevron aims to play an increasingly important role in powering the next generation of AI-driven data centers while strengthening its long-term growth strategy.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Currently, CVX carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Global Partners LP (GLP - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and Liberty Energy Inc. (LBRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. It owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2026 earnings indicates 113.1% year-over-year growth.
TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into two reportable segments: Refining and Logistics. The Zacks Consensus Estimate for DK’s 2026 revenues indicates 5.9% year-over-year growth.
Liberty Energy is a leading North American oilfield services company, specializing in hydraulic fracturing and completion solutions. The company provides differentiated services through advanced technology integration and real-time data analytics. The Zacks Consensus Estimate for LBRT’s 2026 earnings indicates 66.7% year-over-year growth.
Chevron hledá další dohody pro napájení datových center v USA po kontraktu s Microsoftem v Texasu. Projekt Kilby má mít výkon 2,67 GW a první elektřina má přijít v roce 2028.
A Chevron gas station sign is seen in Austin, Texas, U.S., October 23, 2023. REUTERS/Brian Snyder Purchase Licensing Rights, opens new tab
SummaryCompaniesChevron expects a final investment decision on Project Kilby by the end of the yearChevron targets West Texas, Midwest, Gulf Coast, Rockies and Utah for future projectsNEW YORK, June 26 (Reuters) - Chevron (CVX.N), opens new tab is exploring additional data center deals across the U.S., including the Midwest, Rockies, and Gulf Coast, following its two-decade-long contract to power a Microsoft data center in West Texas, a company executive told Reuters.
Oil and gas companies such as Chevron (CVX.N), opens new tab and Exxon Mobil (XOM.N), opens new tab are angling to profit from the record-high electricity demand generated by Big Tech's AI-driven data center expansion, offering their natural gas and experience developing large and complex energy projects.
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Chevron said on Monday it signed an agreement to develop a natural gas-fired power facility, called Project Kilby, which would have 2.67 gigawatts of capacity and provide dedicated electricity to Microsoft's data center campus in Pecos, Texas. The project is the first of its kind for Chevron and will be big enough to power a city the size of San Francisco.
CHEVRON EYES TEXAS, MIDWEST, GULF COASTThe oil major sees potential for additional projects in West Texas, which is part of the Permian Basin, the top U.S. oilfield that holds abundant natural gas resources, said Jeff Gustavson, Chevron's president of new energies, in an interview on Wednesday.
Other regions of interest include the Midwest and Gulf Coast — an important energy production and shipping area — as well as near Colorado's Rocky Mountains, he said. The company is also considering data center deals in Utah, where Chevron has a hydrogen facility.
"We'll look at other parts of the country. We'll look at it with Microsoft. We'll look at it with other potential customers," Gustavson said. "If we can put the right pieces together to meet our return thresholds, you can see more announcements over time."
Kilby provides Chevron with a separate revenue stream not exposed to the commodity price risk of its core business. Gustavson said Chevron and its partners are finalizing project design details and declined to disclose the estimated cost.
Analysts said this week it is too early to tell whether providing power to data centers will become a meaningful revenue stream for Chevron.
Chevron expects to make a final investment decision by the end of the year. The first power from Kilby is expected in 2028, with the project taking several years to hit full capacity.
The project, which will require seven GE Vernova turbines and multiple smaller turbines from Caterpillar, can eventually expand beyond its initial 2.67 gigawatt capacity.
Reporting by Laila Kearney in New York and Sheila Dang in Houston; Editing by Rod Nickel
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Chevron uvedl, že všichni zaměstnanci ve Venezuele jsou v pořádku a provoz po silných zemětřeseních pokračuje bez narušení. Normálně fungují i klíčové těžební projekty, rafinerie Paraguaná a exportní terminál José.
Key Takeaways Chevron confirmed employees are safe and Venezuelan operations continue without earthquake disruptions. CVX said key crude projects, refining and export facilities continue operating normally. Chevron is supporting communities while monitoring safety and recovery across Venezuela. Chevron Corporation (CVX - Free Report) has confirmed that its operations in Venezuela remain unaffected despite two powerful earthquakes that caused widespread destruction and significant loss of life, underscoring the company's commitment to employee safety, operational resilience and support for local communities during challenging times.
Employee Safety Remains the Top Priority for CVXChevron reported that all of its employees in Venezuela are safe and accounted for following the twin earthquakes, which measured 7.2 and 7.5 in magnitude. The company expressed solidarity with the Venezuelan people and reaffirmed its commitment to supporting employees, neighboring communities and maintaining safe operations.
With a long-standing presence in the country, Chevron emphasized that protecting its workforce remains its highest priority while continuing to monitor the evolving situation closely.
CVX's Operations Continue Without DisruptionDespite the severe impact of the earthquakes, Chevron, currently carrying a Zacks Rank #3 (Hold), confirmed that its Venezuelan assets continue to operate normally. The company's three onshore heavy crude projects in western and eastern Venezuela have not experienced operational disruptions.
Key oil infrastructure also remained functional following the seismic events. Venezuela's Paraguaná refining complex, located near the affected region, continued normal refining activities, while the José export terminal maintained regular crude export operations.
These developments demonstrate the resilience of critical energy infrastructure even under difficult circumstances.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Industry Maintains StabilityChevron was not the only energy company to report uninterrupted operations. Other international operators, including Eni S.p.A. (E - Free Report) and Repsol, S.A. (REPYY - Free Report) , also confirmed that their Venezuelan assets remain operational.
Eni continues supplying natural gas that supports approximately half of Venezuela's gas-fired power generation, while Repsol's projects, including its partnership with Eni in the Perla gas field, continue contributing to the country's energy supply.
Although operations have remained stable, authorities and industry operators like CVX, E and REPYY continue assessing petrochemical facilities located closer to the earthquake's epicenter to ensure long-term safety.
Recovery Efforts Continue Across VenezuelaEmergency response teams remain engaged in rescue and recovery efforts following one of the strongest earthquakes recorded in Venezuela in more than a century. Authorities continue evaluating damage to industrial facilities, public infrastructure and residential areas.
Meanwhile, the Morón Petrochemical Complex has begun restoring operations after temporarily suspending activities to complete safety inspections. The precautionary shutdown reflects the industry's emphasis on protecting personnel and ensuring facility integrity before resuming operations.
Chevron's Long-Term Commitment to VenezuelaChevron has maintained a presence in Venezuela through years of political and economic uncertainty. It is making major developments in Venezuela, where production from its joint ventures has been steadily rising, reinforcing its position as a critical partner to PDVSA. The company currently contributes roughly a quarter of the country’s total crude output, underscoring both its operational importance and long-term strategic interest in the region. Chevron's ability to continue operating safely following this natural disaster reflects its focus on operational excellence, risk management and responsible energy production.
By prioritizing employee safety while maintaining reliable operations, Chevron continues to support Venezuela's energy sector during a period of significant national hardship.
Chevron's Ongoing Commitment to Safety and RecoveryAs Venezuela continues recovery efforts, Chevron remains focused on safeguarding its workforce, supporting affected communities and ensuring the safe operation of its assets. The company's swift response and operational resilience demonstrate the importance of strong safety practices and infrastructure preparedness in the face of unexpected natural disasters.
With ongoing assessments across the country's energy sector, Chevron continues working alongside stakeholders to provide reliable energy while contributing to recovery efforts wherever possible.
Chevron podepsal s Microsoftem 20letou smlouvu o dodávkách elektřiny pro datacentrum v Texasu. Projekt má dodat 2,7 GW a první elektřina má přijít v roce 2028.
CNBC’s Brian Sullivan walked viewers through a landmark energy agreement that paints the picture for how much electricity the AI buildout actually needs. Chevron has signed a 20-year power purchase agreement with Microsoft to supply natural-gas-fired electricity to a Microsoft data center in far west Texas, about an hour southwest of Odessa. According to Sullivan, the project will deliver 2.7 gigawatts of capacity, roughly the equivalent of two million homes’ worth of power, and represents “one of the first we’ve seen of its kind, certainly of its size, by Chevron.”
Four publicly traded names sit at the center of the project: Chevron (NYSE:CVX | CVX Price Prediction), Microsoft (NASDAQ:MSFT), GE Vernova (NYSE:GEV), and Caterpillar (NYSE:CAT). Sullivan noted that Caterpillar and GE Vernova supply the turbines that convert natural gas into electricity for the facility, while Chevron supplies the molecules from its Permian Basin position.
What the Deal Looks Like in the Filings In its Q1 2026 8-K, Chevron disclosed an “exclusivity agreement with Microsoft” and Engine No. 1 for a power generation project in West Texas. The branded version, Project Kilby, will be operated through Chevron’s Energy Forge One LLC in partnership with Joulent, targeting a Final Investment Decision by the end of 2026 and delivering first power in 2028. According to Chevron’s press release, the project’s local impact figures include over $10 billion in expected tax revenue and almost 2,000 jobs.
For Chevron, this is a meaningful new growth wedge on top of an already-strong operating base. CEO Mike Wirth said, “2025 was a year of significant achievement. We successfully integrated Hess, started up major projects, delivered record production, and reorganized our business.” The company posted record full-year 2025 production of 3,723 MBOED, $33.9 billion in operating cash flow, and a 39th consecutive annual dividend increase. Shares closed at $173.63 on June 18, up 22.08% over the past year.
Why Microsoft Is Locking Up Power for Two Decades The scale of Microsoft’s AI infrastructure spend explains the urgency. Satya Nadella told investors that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Capital expenditures hit $30.88 billion in fiscal Q3 2026, up 84.39% year over year, with commercial remaining performance obligations of $627 billion. Shares trade at $379.40, down 21.2% year-to-date, as investors weigh capex intensity against future AI returns.
Other Picks-and-Shovels Beneficiaries GE Vernova and Caterpillar are the most direct beneficiaries of agreements like this. On Q1 2026 results, GE Vernova CEO Scott Strazik said, “Our Q1 Electrification orders to data centers were more than full-year 2025 results,” with total Q1 orders of $18.3 billion and gas power gigawatts under contract growing sequentially from 83 to 100. Shares climbed 22.44% in the past week to $1,109.73, and 127% over one year.
Caterpillar CEO Joe Creed announced on the same earnings cycle that “Power generation grew 48%, driven by strong demand for large gensets and turbines used in data center applications with an increasing mix towards prime power,” and disclosed a new 2.1 gigawatt prime power agreement, the sixth of at least one gigawatt. Caterpillar stock sits at $985.82, up 176.97% year over year.
The Natural Gas Backdrop and What to Watch Brian Sullivan framed the macro pressure bluntly: “The demand for natural gas from the United States, unfortunately and kind of sadly, will only go up.” He connected that to a major natural gas facility in Qatar that was damaged in March, with an attempted restart reportedly exploding on the day of his report, reinforcing the value of domestic supply. Henry Hub spot prices are near $3.06/MMBtu as of mid-June 2026, elevated relative to the 2024 baseline, following a brief January 2026 spike to $30.72/MMBtu.
Traditional oil and gas companies are increasingly becoming infrastructure providers for AI data centers, while equipment suppliers benefit from years of contracted demand. Investors should watch for a final investment decision by year-end, potential opposition from West Texas communities over water and land use, and whether other energy producers follow Chevron’s lead by signing long-term power agreements tied to the growing AI investment cycle.
