Chevron v souvislosti s dohodou s Hess Midstream zaúčtuje jednorázový odpis až 4 mld. USD, který by měl snížit náklady na midstreamové služby v Bakkenu až o 50 %.
Chevron (CVX +2.88%) offers an attractive 3.1% yield, backed by 38 consecutive annual dividend increases. It is the kind of energy stock that even a conservative dividend investor can comfortably buy and hold for the long term. A key part of Chevron's success, however, is its willingness to think long term, even if that entails material up-front costs.
Here's why Chevron's agreement with Hess Midstream LP (HESM +1.90%), which will require a write-off of up to $4 billion, is the perfect example of the long-term thinking that makes Chevron a buy-and-hold energy stock.
Image source: Getty Images.
Chevron is a financially strong industry giant
The first thing that you need to understand about Chevron is its scale. With a market cap of around $440 billion, it is one of the world's largest energy companies. It has operations around the world and spread across the entire energy value chain, from the upstream (production) through the midstream (pipelines) and all the way to the downstream (chemicals and refining). The up to $4 billion write-off Chevron is facing from its deal with Hess Midstream is actually a fairly small figure given the company's size and diversification.
Moreover, Chevron has one of the strongest balance sheets among its integrated energy peer group. With a debt-to-equity ratio of roughly 0.2x, only ExxonMobil (XOM +2.79%), at around 0.16x, has less leverage right now. Chevron can easily handle the write-off that the deal with Hess Midstream will entail. In other words, don't worry about the up-front cost; focus on the long-term benefit.
What exactly is Chevron doing with Hess Midstream?
On the surface, the deal with Hess Midstream is pretty generous for Hess. Chevron is basically giving Hess Midstream assets and eating the cost. That's why the transaction will involve a one-time write-off of up to $4 billion. The assets in question are Chevron's ownership interest in Hess Midstream, including its general partner interest, as well as some of Chevron's own midstream assets.
Before getting into what Chevron is getting out of this, it is important to remember that Chevron completed its acquisition of Hess in 2025. The ownership stake in Hess Midstream came along with that transaction. So this move is partly about Chevron cleaning up its portfolio as it integrates the Hess business.
CVX Chevron$233.21+$6.53 (+2.88%)
NYSE · As of 4:00 PM ET 10/23/26
However, Chevron is getting something out of this deal, as it will materially lower its midstream costs in the Bakken region. Management believes the reduction could be as much as 50%, which would be a significant long-term benefit. In fact, controlling costs is a key focus of most oil companies, given that the products they sell are commodities. The lower Chevron's operating costs are, the more profit it can make over the long term. And the more leeway it has to protect its profits when oil prices eventually fall from their recent highs.
Chevron's short-term pain will lead to a long-term gain
Chevron's ability to think long-term is exactly why dividend investors should consider the stock a core energy holding. In fact, despite the up-front cost, the Hess Midstream deal highlights Chevron's goal of positioning itself to benefit through the entire energy cycle. In other words, don't look at the up to $4 billion one-time charge as a negative. Look at it as Chevron paying now to benefit from lower costs for years to come, which is likely to be a huge positive in the historically volatile energy sector.
The company's strong dividend history is proof of Chevron's success at thinking long term. But don't overlook the 3.1% yield, which is well above the energy industry average of 2.4%. If you are considering an energy investment right now, Chevron could actually be the buy-and-hold dividend stock you've been looking for precisely because of its willingness to make deals like the one it just inked with Hess Midstream.
Chevron za čtvrtletí očekává EPS ve výši 4,78 USD, což představuje meziroční nárůst o 158,4 %, a tržby ve výši 60,49 miliardy USD, meziročně vyšší o 21,6 %.
Chevron (CVX - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis oil company is expected to post quarterly earnings of $4.78 per share in its upcoming report, which represents a year-over-year change of +158.4%.
Revenues are expected to be $60.49 billion, up 21.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 29.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Chevron?For Chevron, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.69%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Chevron will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Chevron would post earnings of $5.8 per share when it actually produced earnings of $6.06, delivering a surprise of +4.48%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Chevron appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Chevron plánuje v Argentině do roku 2035 ztrojnásobit produkci na 195 000 barelů ropného ekvivalentu denně; růst by mohlo urychlit rozšíření vrtů v El Trapial.
In a windy, remote oilfield in Argentina, Chevron (CVX.N) is bringing in US workers, equipment and expertise, betting it can recreate the Permian Basin shale boom that transformed the US oil industry two decades ago, this time in the Vaca Muerta formation, where success has long been elusive.
The US oil producer hopes to accelerate its goal of tripling production from Argentina, with plans to go from one to three drilling rigs at its El Trapial block by early 2029, a company executive told Reuters. Longer term, the company is working to secure government approval for its plan to spend $13.8 billion over 30 years so it can increase production at the block, one of Chevron's three projects in the formation, company officials said.
Vaca Muerta, Spanish for dead cow, is one of the world’s largest shale basins. Output there has never reached its full potential due to Argentina's volatile economy, which has been marked by bouts of protectionism, sovereign debt defaults, hyperinflation and capital controls that made it difficult for companies to access US dollars to pay for imports.
"There's always been an expectation that Vaca Muerta would deliver more than it has," said Adrian Lara, a principal analyst at energy consultancy Wood Mackenzie.
That is changing under President Javier Milei, whose sweeping reforms have accelerated an oil boom that has put Argentina on track to overtake Guyana to become the third-largest liquids producer in South America by 2028, Wood Mackenzie estimates.
The country is expected to average 910,000 barrels of oil equivalent per day this year, a 42% increase from 2023 when Milei took office, according to Wood Mackenzie data.
Even with favorable government policy, producers still must contend with higher costs and a less-developed supply chain than in the Permian, where Chevron alone produces about 1 million barrels of oil equivalent per day (boepd).
Chevron's 25-year-plus history in Argentina and its stake in the upcoming Vaca Muerta Oil Sur export pipeline demonstrate confidence that Argentina's oil sector can sustain its upward trajectory, country manager Ana Simonato said in an interview in Buenos Aires.
"The difference is in the way that we're partnering and working together. That's something very important to enable Vaca Muerta's development," she said.
The importance of oil and gas to Argentina's economy means that even if Milei is not reelected in 2027, a new administration may avoid policies that could slow the energy sector, Lara said. Operators are still confronting the question of how stable Milei's reforms will be as they consider long-term investments, he added.
NEW RIGS, UPGRADED FACILITIES
Chevron disclosed in June that it submitted a $13.8 billion investment plan for El Trapial, but the timeline and its plan to deliver additional rigs and accelerate production growth across the country have not been previously reported.
The oil producer said last year it would triple its output across Argentina by 2035 to 195,000 boepd. That timeline could accelerate if it is able to add a second drilling rig in June next year and a third around early 2029 at El Trapial, Chevron's president of shale and tight, Gerbert Schoonman, said.
"I'm hoping we can shave a year or two off," he said.
Chevron fully owns and operates El Trapial, which currently produces 40,000 boepd. It also holds a 50% interest in both Loma Campana, which produces about 110,000 boepd, and Narambuena, which has not yet started production. Energy firm YPF (YPFDm.BA) operates both, which are also located in Vaca Muerta.
El Trapial is central to Chevron's long-term Vaca Muerta strategy. Chevron envisions extending its contract for the block's western section beyond its 2032 expiration and building additional facilities such as tanks to separate oil and water to handle increased production, Simonato said.
The remote location requires a 45-minute chartered flight from the city of Neuquen. Chevron is replacing older housing units on the campgrounds where crews stay with redesigned buildings with eight bedrooms each. The dining hall's menu features steak — not surprising for a country known for beef — while a new soccer field and courts for padel, a racket sport booming in popularity worldwide, are a short walk away.
HIGH COSTS REMAIN A PROBLEM
The hurdles to develop the field remain vast. Bringing a well online costs about 30% more than in the Permian, though better oil productivity in Vaca Muerta helps to close the gap, Chevron Argentina operations manager Juan Pablo Romano said during a September press tour of El Trapial.
Sand used for hydraulic fracturing, or fracking, is delivered on trucks that travel nearly 2,000 kilometers (1,240 miles) from north of Buenos Aires, as local sources of sand have not yet produced satisfactory results for the high-pressure process, Schoonman said.
Schoonman said that when the second rig is delivered in June, Chevron will be able to build enough inventory of drilled wells so a fracking crew can work continuously on-site, rather than their current intermittent schedule.
The ability to continuously drill and frack wells was a game changer for the Permian and other US shale basins, Schoonman added.
"The same will happen in Vaca Muerta. I'm 100% convinced of that," he said.
Key Takeaways Chevron is exploring a $1 billion sale of U.S. Gulf assets, including Petronius, Tubular Bells and Llano.Chevron is prioritizing Anchor and Ballymore to reach 300,000 barrels of oil equivalent per day by 2026.CVX's potential asset sales could attract global and domestic buyers, freeing up capital for growth projects.
Per Reuters, Chevron Corporation (CVX - Free Report) is exploring the potential divestment of several mature oil and gas assets in the U.S. Gulf as part of its strategy to streamline operations and prioritize high-growth opportunities. The proposed transaction could generate approximately $1 billion, according to sources familiar with the matter, although the company has not confirmed any expected proceeds.
The energy major has initiated a marketing process involving select producing properties, with the potential divestments expected to unfold over several months. Chevron emphasized that the initiative remains in its preliminary stages and that there is no certainty of completing any transactions.
The portfolio review reflects Chevron's intention to concentrate resources on newer offshore developments with stronger long-term growth potential while optimizing its existing asset base.
Chevron Identifies Mature Gulf Assets for Potential SaleChevron's proposed divestment portfolio includes Petronius, Tubular Bells and Llano, alongside working interests in several other operated and non-operated offshore fields.
Petronius, which commenced production in 2000, is operated by Chevron in partnership with Talos Energy. Tubular Bells began operations in 2014 and is now wholly owned by Chevron. The company initially held a 43% interest in the field before acquiring the remaining ownership through its takeover of Hess.
Meanwhile, Chevron inherited a 50% stake in Llano following the Hess acquisition. The Shell-operated field has been producing since 2004.
By considering the disposal of these established producing assets, Chevron aims to better align its offshore portfolio with its strategic priorities. However, the company has clarified that the marketing process does not necessarily mean the properties will ultimately be sold.
Anchor and Ballymore Drive Chevron's Gulf Growth StrategyChevron's portfolio optimization efforts coincide with its ambition to increase U.S. Gulf production to 300,000 barrels of oil equivalent per day by the end of 2026.
The company is increasingly prioritizing newer developments, including Anchor and Ballymore, as it seeks to expand production from strategically important offshore projects.
Anchor represents a significant technological milestone as Chevron's first offshore platform operating at ultra-high subsea pressure. Ballymore, which commenced production in 2025, also forms an important part of the company's regional development strategy.
Beyond these projects, Chevron continues exploring opportunities to discover additional hydrocarbon resources near its existing offshore infrastructure. The company has also maintained an active presence in federal offshore drilling-rights auctions, reflecting its commitment to developing future production opportunities.
Strong Buyer Interest Could Support Chevron's Divestment PlansFavorable market conditions could improve Chevron's prospects of securing buyers for its mature offshore properties. Continued interest in U.S. energy assets, coupled with supportive oil prices, provides a potentially attractive backdrop for the proposed transactions.
According to people familiar with the process, the assets could collectively fetch approximately $1 billion, although the final value would depend on negotiations and market conditions.
Potential buyers may include international offshore operators seeking to establish or expand their presence in the U.S. Gulf. Domestic energy companies with existing regional operations could also participate, while other major energy producers may evaluate the opportunity.
A successful divestment would enable Chevron to further rationalize its portfolio and potentially redirect capital toward developments offering greater long-term growth prospects.
What the Asset Sale Could Mean for ChevronChevron's planned portfolio reshaping underscores its focus on improving the strategic composition of its U.S. Gulf operations rather than withdrawing from the region.
By potentially monetizing older producing fields while advancing newer offshore developments, the company could strengthen its ability to concentrate investment on projects supporting future production growth.
Nevertheless, the divestment initiative remains subject to buyer interest, valuation negotiations and transaction execution. Its ultimate financial and operational impact will depend on which assets are sold and the terms achieved.
For now, Chevron's efforts highlight a broader strategy of balancing portfolio optimization with continued investment in high-potential offshore resources.
CVX’s Zacks Rank & Other Key PicksChevron is one of the largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Currently, CVX flaunts a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector may consider some other top-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) , Crescent Energy Company (CRGY - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary-based Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2026 earnings indicates 61.4% year-over-year growth.
Crescent Energy is a U.S. onshore oil and gas producer focused on three major basins: the Eagle Ford in Texas, the Permian in Texas and New Mexico, and the Uinta in Utah. The Zacks Consensus Estimate for CRGY’s 2026 earnings indicates 46.7% year-over-year growth.
Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for DK’s 2026 earnings indicates 169.4% year-over-year growth.
Chevron (CVX +0.60%) is preparing to invest more than $7 billion in Venezuela over the next five years, expanding its presence in a country with some of the world's largest oil reserves. In fact, the company recently secured improved commercial and legal terms for its Venezuelan joint ventures, along with additional drilling acreage in the country's oil-rich Orinoco Belt. But the number you should watch isn't the $7 billion investment. It's 600,000 barrels per day. That's Chevron's production target for Venezuela, representing more than double its 2026 output.
Image source: Getty Images.
Why production growth is the key
Chevron's three Venezuelan joint ventures produced about 280,000 barrels of oil per day in the second quarter of 2026, up 15% from the previous six months. So reaching 600,000 barrels per day would add roughly 320,000 barrels of daily production.
At an illustrative oil price of $70 per barrel, that additional output would represent approximately $8.2 billion in annual gross oil sales before accounting for operating costs, government payments, and Chevron's ownership stakes in the joint ventures. That's not trivial.
Chevron also expects total production costs to remain below $20 per barrel, potentially leaving substantial room for profits if oil prices remain favorable. Of course, Venezuela carries significant political and regulatory risks. Years of underinvestment have also left much of the country's oil infrastructure in need of repair. That can't be ignored.
CVX Chevron$225.71+$1.34 (+0.60%)
NYSE · As of 4:00 PM ET 10/20/26
A strategic advantage
Chevron has operated in Venezuela for more than a century and already has producing assets, infrastructure, and established partnerships. That said, the company's investment case extends well beyond Venezuela, with major operations in the United States and other international markets.
On a global scale, Chevron already produces more than 4 million barrels of oil equivalent per day. The additional 320,000 barrels per day targeted in Venezuela would represent roughly 8% of that total, although Chevron's actual share would be smaller because it doesn't fully own the joint ventures. So while Venezuela isn't likely to make or break Chevron, it could still become a meaningful source of additional cash flow, particularly if production costs remain below $20 per barrel. And that does make Venezuela relevant.
Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
On Oct. 14, Chevron (CVX -0.05%) touched an all-time high closing price of $222.04. As I write this, it's trading at just about a dollar below that. The stock has had a banner 2026, climbing 45% and massively outperforming the broader market.
CVX Chevron$224.87-$0.12 (-0.05%)
NYSE · As of 3:40 PM ET 10/19/26
So, the question for investors right now is: Is that impressive price gain just due to elevated oil prices, which are bound to come back down eventually? Or is the stock a buy for the long term?
Well, it's certainly true that oil prices are elevated. The current price for a barrel of Brent crude, the international benchmark, is just under $106. That's 46% higher than before the war in the Persian Gulf began. When oil prices rise, revenue and profits for oil majors rise in tandem, and share prices follow.
But Chevron has more going for it than just war-related increases in crude prices. It is extremely well-positioned to benefit from President Donald Trump's deal with Venezuela that gives the U.S. control of more than 65 billion barrels of that country's proven reserves. Chevron appears to be intricately involved with the plan, as it was the only American oil major to retain operations in Venezuela after the Bolivarian revolution of 1999.
Image source: Getty Images.
The company is also expanding its presence in the Mediterranean Sea, with new agreements to begin seismic research in waters off Greece later this year. The expansion into Greek waters bolsters Chevron's strategy to expand in the Eastern Mediterranean and build on operations in Israel, Egypt, and Cyprus. The region is a significant and growing source of natural gas.
A global refining shortage will benefit Chevron There's also the global shortage of refining capacity, which is expected to outlast the conflict with Iran. The shortage is a big positive for Chevron, which has the capacity to refine the heavy, sour crude produced by Venezuela. Chevron CEO Mike Wirth said in January that the company can process an additional 100,000 barrels per day of Venezuelan crude at its Pascagoula, Mississippi refinery.
Chevron reported net income of $12.1 billion for the second quarter, nearly 400% higher than the year-ago quarter, on record U.S. production and 20% growth in global production. This was its highest quarterly profit in the last six years. It beat Wall Street's earnings estimates by $0.50 a share, at $6.06.
Chevron will report its third-quarter results on Oct. 30, and I expect similarly positive figures. As a result of all this recent good news, and more expected, I believe this stock is a buy, even after hitting a record high.
Wall Street agrees. Of the 25 Wall Street analysts who cover the stock (as recorded by Yahoo! Finance), 20 rate it a "Buy" or "Strong Buy."
Assenagon Asset Management S.A. grew its stake in shares of Chevron Corporation (NYSE:CVX – Free Report) by 26.9% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,432,618 shares of the oil and gas company’s stock after acquiring an additional 304,098 shares during the quarter. Assenagon Asset Management S.A. owned about 0.07% of Chevron worth $293,424,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Chevron during the 2nd quarter valued at $25,663,729,000. Bank of New York Mellon Corp purchased a new position in shares of Chevron in the second quarter worth $2,378,114,000. Legal & General Group Plc purchased a new position in shares of Chevron in the second quarter worth $1,462,412,000. Berkshire Hathaway Inc raised its stake in shares of Chevron by 6.6% in the fourth quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company’s stock worth $19,837,131,000 after purchasing an additional 8,091,570 shares during the last quarter. Finally, Deutsche Bank AG bought a new position in shares of Chevron during the second quarter valued at $1,189,577,000. 72.42% of the stock is currently owned by institutional investors.
Key Headlines Impacting Chevron Here are the key news stories impacting Chevron this week:
Positive Sentiment: Analyst support remains a key catalyst. Morgan Stanley raised its price target to $226 from $218 and assigned an “overweight” rating, implying additional upside. Wells Fargo also initiated or reiterated a “Buy” view on Chevron. Chevron price target raised by Morgan Stanley Positive Sentiment: Expectations for the upcoming earnings report are strong. Wall Street anticipates a sharp year-over-year increase in third-quarter earnings, supporting the recent rally. Chevron previously exceeded quarterly EPS and revenue estimates, while second-quarter 2026 free cash flow reportedly reached $18.1 billion. Chevron earnings expectations Positive Sentiment: Chevron’s integrated business and dividend profile continue to attract investors. Its upstream, refining and chemicals operations can provide resilience across commodity cycles, while the company’s roughly 3.5% yield and strong cash generation support its appeal as an income stock. Neutral Sentiment: Chevron has reached a fresh one-year high. Coverage highlights continued momentum and questions whether fundamentals justify further gains. The stock’s strong multi-year performance may keep investor interest elevated, but also raises the risk of profit-taking. Chevron reaches a fresh high Negative Sentiment: Chevron’s CEO warned that global oil-market safety buffers have been depleted. Commercial inventories, emergency reserves and previously sanctioned barrels have reportedly been drawn down following the Iran-related supply shock. The warning increases concerns about supply vulnerability, diesel prices and potential economic pressure that could weigh on demand. Chevron CEO warns oil buffers are depleted Negative Sentiment: Valuation is becoming a near-term headwind. Commentary suggests Chevron may be fairly valued or overvalued after its rally, potentially limiting upside unless earnings and oil prices continue to outperform. Chevron valuation analysis Insider Activity In other news, Director John B. Hess sold 100,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $194.26, for a total value of $19,426,000.00. Following the transaction, the director directly owned 178,045 shares in the company, valued at $34,587,021.70. The trade was a 35.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R. Pate sold 2,470 shares of Chevron stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total value of $506,621.70. Following the sale, the insider directly owned 10,794 shares in the company, valued at $2,213,957.34. This trade represents a 18.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,152,582 shares of company stock worth $225,853,661 in the last quarter. 0.56% of the stock is currently owned by insiders. Analysts Set New Price Targets A number of analysts have recently commented on CVX shares. Royal Bank Of Canada lifted their price target on shares of Chevron from $220.00 to $230.00 and gave the stock an “outperform” rating in a research note on Thursday, September 24th. Barclays lowered their price objective on shares of Chevron from $216.00 to $208.00 and set an “equal weight” rating on the stock in a research report on Monday, August 17th. BMO Capital Markets raised their target price on shares of Chevron from $210.00 to $235.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Wall Street Zen raised shares of Chevron from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Zacks Research raised shares of Chevron from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $213.42.
Check Out Our Latest Stock Report on Chevron
Chevron Price Performance Shares of Chevron stock opened at $219.51 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25. The stock’s fifty day moving average is $206.81 and its 200 day moving average is $193.29. The stock has a market cap of $433.71 billion, a P/E ratio of 20.48, a P/E/G ratio of 0.61 and a beta of 0.53. Chevron Corporation has a one year low of $146.49 and a one year high of $223.46.
Chevron (NYSE:CVX – Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, topping the consensus estimate of $5.55 by $0.51. The firm had revenue of $67.20 billion for the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a return on equity of 11.09% and a net margin of 9.57%. The business’s revenue for the quarter was up 57.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.77 earnings per share. Sell-side analysts anticipate that Chevron Corporation will post 17.53 earnings per share for the current year.
Chevron Announces Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th were paid a dividend of $1.78 per share. The ex-dividend date was Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a yield of 3.2%. Chevron’s dividend payout ratio (DPR) is presently 68.26%.
About Chevron (Free Report)
Chevron Corporation (NYSE:CVX) is an integrated energy company engaged in the exploration, development, production, transportation and sale of crude oil and natural gas. Its upstream operations include oil and gas exploration and production, while its downstream business includes refining crude oil, marketing fuels and manufacturing and distributing lubricants, petrochemicals and fuel additives.
The company also invests in lower-carbon businesses and technologies, including renewable fuels, carbon capture and storage, hydrogen and other opportunities intended to reduce emissions from its operations and energy products.
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B.A. Schrock Wealth Management ve třetím čtvrtletí získala novou pozici ve společnosti Chevron: 16 149 akcií CVX v hodnotě přibližně 3,345 milionu USD.
B.A. Schrock Wealth Management Inc. bought a new stake in shares of Chevron Corporation (NYSE:CVX – Free Report) during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 16,149 shares of the oil and gas company’s stock, valued at approximately $3,345,000.
A number of other institutional investors and hedge funds also recently made changes to their positions in CVX. Howard Financial Services LTD. raised its stake in Chevron by 8.6% during the 3rd quarter. Howard Financial Services LTD. now owns 5,836 shares of the oil and gas company’s stock valued at $1,192,000 after purchasing an additional 464 shares during the last quarter. ZWJ Investment Counsel Inc. boosted its holdings in Chevron by 3.8% in the 3rd quarter. ZWJ Investment Counsel Inc. now owns 272,206 shares of the oil and gas company’s stock valued at $55,587,000 after purchasing an additional 10,053 shares during the period. Mather Group LLC. boosted its holdings in Chevron by 77.3% in the 3rd quarter. Mather Group LLC. now owns 89,259 shares of the oil and gas company’s stock valued at $18,391,000 after purchasing an additional 38,926 shares during the period. Hudock Inc. grew its position in Chevron by 5.3% in the 3rd quarter. Hudock Inc. now owns 21,104 shares of the oil and gas company’s stock worth $4,363,000 after purchasing an additional 1,054 shares during the last quarter. Finally, West Wealth Group LLC grew its position in Chevron by 9.1% in the 3rd quarter. West Wealth Group LLC now owns 2,651 shares of the oil and gas company’s stock worth $541,000 after purchasing an additional 222 shares during the last quarter. Institutional investors and hedge funds own 72.42% of the company’s stock.
Chevron News Roundup Here are the key news stories impacting Chevron this week:
Positive Sentiment: Analyst support remains a key catalyst. Morgan Stanley raised its price target to $226 from $218 and assigned an “overweight” rating, implying additional upside. Wells Fargo also initiated or reiterated a “Buy” view on Chevron. Chevron price target raised by Morgan Stanley Positive Sentiment: Expectations for the upcoming earnings report are strong. Wall Street anticipates a sharp year-over-year increase in third-quarter earnings, supporting the recent rally. Chevron previously exceeded quarterly EPS and revenue estimates, while second-quarter 2026 free cash flow reportedly reached $18.1 billion. Chevron earnings expectations Positive Sentiment: Chevron’s integrated business and dividend profile continue to attract investors. Its upstream, refining and chemicals operations can provide resilience across commodity cycles, while the company’s roughly 3.5% yield and strong cash generation support its appeal as an income stock. Neutral Sentiment: Chevron has reached a fresh one-year high. Coverage highlights continued momentum and questions whether fundamentals justify further gains. The stock’s strong multi-year performance may keep investor interest elevated, but also raises the risk of profit-taking. Chevron reaches a fresh high Negative Sentiment: Chevron’s CEO warned that global oil-market safety buffers have been depleted. Commercial inventories, emergency reserves and previously sanctioned barrels have reportedly been drawn down following the Iran-related supply shock. The warning increases concerns about supply vulnerability, diesel prices and potential economic pressure that could weigh on demand. Chevron CEO warns oil buffers are depleted Negative Sentiment: Valuation is becoming a near-term headwind. Commentary suggests Chevron may be fairly valued or overvalued after its rally, potentially limiting upside unless earnings and oil prices continue to outperform. Chevron valuation analysis Insider Activity In other news, Director John B. Hess sold 710,665 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the completion of the sale, the director owned 363,711 shares of the company’s stock, valued at approximately $70,596,305.10. This trade represents a 66.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider R. Pate sold 2,470 shares of Chevron stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total transaction of $506,621.70. Following the completion of the transaction, the insider owned 10,794 shares of the company’s stock, valued at $2,213,957.34. This trade represents a 18.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,152,582 shares of company stock valued at $225,853,661 in the last ninety days. 0.56% of the stock is currently owned by corporate insiders. Analyst Upgrades and Downgrades Several research analysts have recently issued reports on the stock. TD Cowen boosted their price objective on shares of Chevron from $215.00 to $225.00 and gave the stock a “hold” rating in a report on Monday. Bank of America increased their target price on shares of Chevron from $210.00 to $227.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Piper Sandler increased their target price on shares of Chevron from $207.00 to $243.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Wells Fargo & Company lifted their target price on Chevron from $226.00 to $230.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. Finally, The Goldman Sachs Group lowered their price target on Chevron from $240.00 to $228.00 and set a “buy” rating on the stock in a research note on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $213.42.
Check Out Our Latest Research Report on CVX
Chevron Price Performance NYSE:CVX opened at $219.51 on Friday. The company has a market capitalization of $433.71 billion, a price-to-earnings ratio of 21.05, a PEG ratio of 0.61 and a beta of 0.53. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25. Chevron Corporation has a 52 week low of $146.49 and a 52 week high of $223.46. The company has a 50-day moving average of $206.81 and a 200-day moving average of $193.29.
Chevron (NYSE:CVX – Get Free Report) last released its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, beating analysts’ consensus estimates of $5.55 by $0.51. The company had revenue of $67.20 billion for the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a return on equity of 11.09% and a net margin of 9.57%. The company’s quarterly revenue was up 57.4% on a year-over-year basis. During the same period in the previous year, the business earned $1.77 earnings per share. As a group, equities research analysts anticipate that Chevron Corporation will post 17.53 earnings per share for the current fiscal year.
Chevron Announces Dividend The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were issued a dividend of $1.78 per share. This represents a $7.12 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is currently 68.26%.
About Chevron (Free Report)
Chevron Corporation (NYSE:CVX) is an integrated energy company engaged in the exploration, development, production, transportation and sale of crude oil and natural gas. Its upstream operations include oil and gas exploration and production, while its downstream business includes refining crude oil, marketing fuels and manufacturing and distributing lubricants, petrochemicals and fuel additives.
The company also invests in lower-carbon businesses and technologies, including renewable fuels, carbon capture and storage, hydrogen and other opportunities intended to reduce emissions from its operations and energy products.
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Akcie společnosti Chevron za poslední měsíc vzrostly o 5 % a dosáhly nového 52týdenního maxima 222,55 USD. V posledním čtvrtletí zisk na akcii (EPS) ve výši 6,06 USD překonal konsenzuální odhad 5,80 USD.
A strong stock as of late has been Chevron (CVX - Free Report) . Shares have been marching higher, with the stock up 5% over the past month. The stock hit a new 52-week high of $222.55 in the previous session. Chevron has gained 45.7% since the start of the year compared to the 40.4% gain for the Zacks Oils-Energy sector and the 47.9% return for the Zacks Oil and Gas - Integrated - International industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2026, Chevron reported EPS of $6.06 versus consensus estimate of $5.8.
For the current fiscal year, Chevron is expected to post earnings of $17.53 per share on $239.3 in revenues. This represents a 140.47% change in EPS on a 26.59% change in revenues. For the next fiscal year, the company is expected to earn $15.5 per share on $236.24 in revenues. This represents a year-over-year change of -11.6% and -1.28%, respectively.
Valuation MetricsThough Chevron has recently hit a 52-week high, what is next for Chevron? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Chevron has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.2X. On a trailing cash flow basis, the stock currently trades at 13.3X versus its peer group's average of 6.7X. Additionally, the stock has a PEG ratio of 0.61. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Chevron currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Chevron passes the test. Thus, it seems as though Chevron shares could still be poised for more gains ahead.
How Does CVX Stack Up to the Competition?Shares of CVX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is OMV AG (OMVKY - Free Report) . OMVKY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. OMV AG beat our consensus estimate by 347.30%, and for the current fiscal year, OMVKY is expected to post earnings of $2.55 per share on revenue of $39.7 billion.
Shares of OMV AG have gained 0.6% over the past month, and currently trade at a forward P/E of 8.16X and a P/CF of 5.41X.
The Oil and Gas - Integrated - International industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVX and OMVKY, even beyond their own solid fundamental situation.
Chevron za 10 let s reinvestovanými dividendami proměnil investici ve výši 1 000 USD na 3 276 USD, ale zaostal za indexem S&P 500, který dosáhl hodnoty 3 647 USD.
Chevron just posted one of its strongest runs in years, yet patient investors who held through every oil crash and geopolitical shock may be surprised by where they actually stand against the broader market.
The energy major’s stock has gained sharply over the past year, and the rally changes how its full decade looks. Put $1,000 into Chevron (NYSE:CVX | CVX Price Prediction) ten years ago, reinvest every dividend, and you’d now hold more than three times your money. Even so, you’d still trail the S&P 500.
Oil Crashes, Oil Spikes and a Hess-Sized Push for Scale Chevron works across the whole energy chain. Upstream, it finds and produces oil and gas. Downstream, it refines, markets and makes chemicals. Results swing with crude prices. The 2020 COVID crash hit the whole industry hard, though Chevron kept paying its dividend. Russia’s invasion of Ukraine in 2022 then brought a boom.
Chevron closed its Hess acquisition in 2025. That year production hit a record 3,723 MBOED, up 12%. In 2026, military action that began February 28 effectively shut the Strait of Hormuz, and Brent averaged $117 per barrel in April. Second-quarter revenue rose 51.4% to $67.2B. Over the whole decade, the quarterly dividend climbed from $1.07 to $1.78.
Your $1,000 Became $3,276 Chevron’s figures use dividend-adjusted prices, so they assume all dividends were reinvested. The S&P 500 figures track SPDR S&P 500 ETF Trust (NYSEARCA:SPY) on price alone and leave out its dividends.
1-Year Return
Initial Investment: $1,000 Current Value: $1,516 Total Return: 51.61% S&P 500 (same period): $1,190 (19.01%) 5-Year Return
Initial Investment: $1,000 Current Value: $2,462 Total Return: 146.21% Annualized Return: 19.7% S&P 500 (same period): $1,786 (78.59%) 10-Year Return
Initial Investment: $1,000 Current Value: $3,276 Total Return: 227.63% Annualized Return: 12.6% S&P 500 (same period): $3,647 (264.67%) Timing drove almost everything here. The 5-year window starts in October 2021, just before the 2022 surge, and Chevron beat the index easily over that period. The 10-year holder sat through the 2020 collapse and still fell behind a benchmark that wasn’t even credited with its dividends. Reinvested payouts did much of the work. Without them, Chevron’s decade would look much weaker.
Why Chevron’s Dividend Case Matters Most Right Now Chevron’s case today depends on income that holds up across the oil cycle. Investors focused on riding the current crude spike could face more risk.
Bull case: The CEO says Hess assets generate free cash flow “roughly double the incremental dividends.” A 20-year Microsoft (NASDAQ:MSFT) power deal adds cash flow that doesn’t depend on commodity prices. Chevron also bases its 2030 targets on oil prices below current levels.
Bear case: Today’s earnings depend on a Hormuz disruption that won’t last forever. The stock trades at $217.22, right near its 52-week high of $217.78.
The income case looks stronger than the price-gain case. A decade of crashes and spikes still turned $1,000 into $3,276 for patient holders who reinvested. Energy majors reward holders who stay through a full cycle.
Contact [email protected] for any questions or corrections.
Scott Capital Advisors LLC acquired a new stake in Chevron Corporation (NYSE:CVX – Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 3,099 shares of the oil and gas company’s stock, valued at approximately $636,000.
A number of other institutional investors have also made changes to their positions in the company. Blue Capital Inc. bought a new stake in Chevron during the second quarter valued at $786,000. OneAscent Wealth Management LLC bought a new position in shares of Chevron during the second quarter worth about $973,000. Global Retirement Partners LLC acquired a new position in Chevron during the 2nd quarter valued at about $14,276,000. Ferguson Wellman Capital Management Inc. increased its stake in shares of Chevron by 0.6% in the third quarter. Ferguson Wellman Capital Management Inc. now owns 911,718 shares of the oil and gas company’s stock valued at $186,182,000 after purchasing an additional 5,787 shares during the period. Finally, Janney Montgomery Scott LLC grew its holdings in Chevron by 6.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 1,251,102 shares of the oil and gas company’s stock worth $258,853,000 after buying an additional 79,439 shares in the last quarter. 72.42% of the stock is owned by institutional investors and hedge funds.
Chevron News Roundup Here are the key news stories impacting Chevron this week:
Positive Sentiment: Chevron was added to Zacks’ Rank #1 (Strong Buy) income-stocks list, reinforcing the appeal of its dividend and operating outlook. Best Income Stocks to Buy for October 13th Positive Sentiment: TD Cowen raised its Chevron price target from $215 to $225 while maintaining a Hold rating. The higher target reflects potential upside supported by production growth, cost savings and cash flow. Chevron Stock Gets Price Target Increase from TD Cowen Positive Sentiment: Chevron and Egypt are advancing discussions surrounding Cyprus’ Aphrodite gas field and pipeline, including commercial agreements, long-lead procurement and a potential final investment decision. Progress could create a longer-term international gas-growth catalyst. Chevron and Egypt Discuss Next Steps for Aphrodite Gas Pipeline Positive Sentiment: Analysts continue to cite Chevron’s strong cash flow, expanding production, cost reductions, Hess integration and upbeat 2026 earnings expectations. The stock has outperformed the broader energy industry over recent months. CVX Outpaces Industry in Past 6 Months Neutral Sentiment: Chevron’s planned January 2027 leadership changes will make Jeff Gustavson CFO and move current CFO Eimear Bonner to lead Oil, Products & Gas. The restructuring ties New Energies more closely to the core business, but execution risks remain. Chevron CFO Shake-Up Negative Sentiment: Hurricane-related shutdowns temporarily disrupted U.S. Gulf oil production, although Chevron and other major producers are restoring output. The interruption could weigh on near-term volumes and earnings. U.S. Gulf Oil Production Restored After Hurricane Negative Sentiment: Chevron’s CEO warned that restrictions on diesel and fuel exports could backfire, potentially tightening regional supply and creating unfavorable market distortions. Separately, the average reported price target of $213.08 is slightly below the stock’s opening price, suggesting limited consensus upside. Chevron CEO Warns Against Diesel and Fuel Export Decision Insider Buying and Selling In other Chevron news, Director John Hess sold 710,665 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the transaction, the director owned 363,711 shares in the company, valued at $70,596,305.10. This trade represents a 66.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Michael Wirth sold 317,100 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $200.46, for a total transaction of $63,565,866.00. Following the completion of the sale, the chief executive officer owned 26,308 shares of the company’s stock, valued at $5,273,701.68. The trade was a 92.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,152,582 shares of company stock worth $225,853,661. 0.56% of the stock is currently owned by company insiders. Analyst Ratings Changes A number of research firms recently commented on CVX. Dbs Bank upgraded shares of Chevron to a “moderate buy” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on Chevron from $190.00 to $222.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. Wells Fargo & Company raised their target price on shares of Chevron from $226.00 to $230.00 and gave the stock an “overweight” rating in a report on Thursday, September 3rd. Mizuho set a $234.00 target price on Chevron in a report on Monday. Finally, Zacks Research upgraded Chevron from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $213.08.
Read Our Latest Stock Report on Chevron
Chevron Price Performance NYSE CVX opened at $214.89 on Tuesday. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $424.57 billion, a PE ratio of 20.60, a price-to-earnings-growth ratio of 0.59 and a beta of 0.53. The company has a 50 day moving average price of $204.94 and a two-hundred day moving average price of $193.04. Chevron Corporation has a 12-month low of $146.49 and a 12-month high of $217.78.
Chevron (NYSE:CVX – Get Free Report) last released its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, beating analysts’ consensus estimates of $5.55 by $0.51. The business had revenue of $67.20 billion for the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.09%. Chevron’s revenue for the quarter was up 57.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.77 EPS. As a group, equities analysts predict that Chevron Corporation will post 17.34 earnings per share for the current fiscal year.
Chevron Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were paid a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is presently 68.26%.
About Chevron (Free Report)
Chevron Corporation (NYSE:CVX) is an integrated energy company engaged in the exploration, development, production, transportation and sale of crude oil and natural gas. Its upstream operations include oil and gas exploration and production, while its downstream business includes refining crude oil, marketing fuels and manufacturing and distributing lubricants, petrochemicals and fuel additives.
The company also invests in lower-carbon businesses and technologies, including renewable fuels, carbon capture and storage, hydrogen and other opportunities intended to reduce emissions from its operations and energy products.
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Akcie Chevronu za šest měsíců posílily o 10,6 % a překonaly energetický sektor. Konsenzus podle Zacks očekává pro rok 2026 meziroční růst zisku na akcii o 137,9 %.
Key Takeaways Chevron gained 10.6% in six months, outperforming its sub-industry and the broader energy sector's returns.CVX targets over 10% average annual adjusted free cash flow growth through 2030.Chevron achieved $3 billion in annualized savings, while 2026 earnings are projected to grow 137.9% YoY.
Over the past six months, shares of Chevron Corporation (CVX - Free Report) have outpaced both its sub-industry and the broader energy sector. The stock gained 10.6%, outperforming the sub-industry and the energy sector’s rise of 7.2% and 7.4%, respectively.
Image Source: Zacks Investment Research
Despite concerns surrounding oil demand, crude price fluctuations and evolving geopolitical conditions, Chevron continues to distinguish itself as a leading integrated energy company. Its strong track record of shareholder returns, high-quality asset base, solid balance sheet, operational strength and favorable earnings outlook support its potential for sustainable growth.
At the same time, volatility in global energy markets and elevated oil prices could create an attractive opportunity to invest in a high-quality producer with low-cost operations and resilient cash generation. For investors looking for a blend of stability, income and long-term growth potential, Chevron’s current position may offer an appealing entry point. With energy demand and production expected to remain important over the long term, here’s why CVX remains a compelling stock to consider for investors seeking energy exposure in 2026.
Strong Cash Flow Outlook Supports Shareholder ReturnsChevron's cash-generation outlook and financial discipline provide a strong foundation for shareholder returns. Management expects adjusted free cash flow to grow by more than 10% annually on average through 2030 at its stated commodity assumptions while targeting a dividend-plus-capex breakeven below $50 Brent. Its $1.78 quarterly dividend per share and continuing buybacks reflect a commitment to capital returns. The 20-year Microsoft power agreement for 2.67 gigawatts adds an opportunity for contracted, oil-price-independent cash flows, subject to successful project execution. The company's dividend yield of 3.36% is particularly attractive, demonstrating strength against peers like Shell plc (SHEL - Free Report) and Exxon Mobil Corporation (XOM - Free Report) , which offer a lower yield comparatively.
CVX’s Attractive Dividend Yield
Image Source: Zacks Investment Research
Expanding Upstream Portfolio Supports Long-Term GrowthChevron's upstream portfolio offers a clear path to higher production, supported by Guyana, the Permian Basin and the Gulf of America. The Hess acquisition adds long-life, high-margin Guyana barrels, while management targets 2%-3% annual production growth through 2030. Chevron's September agreement in Venezuela provides further upside through new Orinoco Belt acreage and improved commercial terms. Its joint ventures plan to invest more than $7 billion over five years and more than double production to about 600,000 barrels a day from 2026 levels, with total costs below $20 per barrel. These developments could extend Chevron's resource base, broaden its growth opportunities and support cash generation beyond this decade. ExxonMobil also stands to benefit from its Guyana and the Permian Basin assets as they support higher production and improved unit profitability, and Shell recently completed the acquisition of ARC Resources, which will expand its Integrated Gas business and increase production growth through 2030.
Cost Reductions and Asset Optimization Strengthen ReturnsChevron's focus on lowering operating costs should strengthen profitability even without a sustained rise in oil prices. The company achieved $3 billion in annualized structural savings and $1.5 billion in Hess-related synergies ahead of schedule. Its recent agreement to transfer Hess Midstream interests and DJ Basin crude midstream assets is expected to cut Bakken unit midstream costs by about 50% and lift return on capital employed by 0.5%. The deal should also remove roughly $3.7 billion of Hess Midstream debt from Chevron's consolidated balance sheet upon closing. At the same time, ExxonMobil's $16.3 billion in cost savings since 2019 supports its $20 billion target by 2030, with operational efficiencies expected to keep cash costs broadly flat. Shell's $700 million savings in 2026 support its $5-$7 billion cost reduction target, with AI and operational efficiencies set to boost free cash flow.
A Positive 2026 Earnings EstimateThe Zacks Consensus Estimate for CVX’s 2026 earnings is pegged at $17.34 per share, indicating 137.9% year-over-year growth. The positive earnings estimate outlook makes the stock attractive for investors.
In comparison to Chevron, the Zacks Consensus Estimate of its peer companies — namely Shell and Exxon Mobil — indicates 79.1% and 77.4% growth, respectively.
Image Source: Zacks Investment Research
Final VerdictChevron offers a strong long-term investment case, backed by 39 consecutive years of dividend growth and an attractive 3.36% yield. Its expanding upstream portfolio across Guyana, the Permian Basin and the Gulf of America supports management's 2%-3% annual production growth target through 2030. Chevron also expects adjusted free cash flow to grow more than 10% annually, supported by disciplined spending and cost reductions. Its strong balance sheet and limited Middle East exposure, in contrast to peers — Shell and Exxon Mobil — add resilience amid market uncertainty. Moreover, the Zacks Consensus Estimate indicates 137.9% earnings growth in 2026, strengthening its investment appeal. Despite commodity price volatility and geopolitical risks, Chevron's financial strength and growth prospects remain encouraging. Carrying a Zacks Rank #2 (Buy) at present, CVX remains an attractive choice for long-term investors.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron a Egypt dokončují dohody nezbytné pro konečné investiční rozhodnutí o rozvoji ložiska Aphrodite v hodnotě 4 mld. USD, včetně 280km plynovodu z Kypru do Egypta.
Key Takeaways Chevron advances Aphrodite gas field plans as Egypt talks target a final investment decision.The $4 billion project includes a 280-kilometer pipeline linking Cyprus gas to Egypt.Chevron's growth prospects depend on final agreements, financing and project approvals. Chevron Corporation (CVX - Free Report) is advancing plans to develop Cyprus' Aphrodite natural gas field, as Egypt and the U.S. energy major work to finalize arrangements for transporting the resource to Egyptian infrastructure. According to Egypt Oil & Gas, the latest discussions mark another step toward a final investment decision (“FID”) for the project, which is designed to connect Eastern Mediterranean gas supplies with processing facilities and international markets.
On Oct. 8, 2026, Egypt's minister of Petroleum and Mineral Resources, Karim Badawi, met with Chevron’s senior executives in Athens to review the remaining technical, commercial and legal requirements. The discussions focused on completing the necessary agreements before deciding on long-lead item procurement and subsequently proceeding with the FID. Egypt's petroleum ministry said the parties were working to accelerate the remaining procedures.
Chevron Leads a Major Eastern Mediterranean Gas ProjectChevron operates the Aphrodite field in Cyprus' offshore Block 12, holding a 35% working interest. Shell (SHEL - Free Report) holds another 35%, while NewMed Energy owns the remaining 30%. The project is estimated to require approximately $4 billion in total development investment, according to previously disclosed development estimates.
The development plan includes a floating production unit positioned above the field and a subsea pipeline connecting the facility to Egypt's gas network. The proposed pipeline would extend approximately 280 kilometers, allowing the partners to transport gas from Cyprus to Egyptian infrastructure for processing and onward export.
The Aphrodite field was discovered in 2011 and represents an important component of Cyprus' offshore natural gas resources. However, development requires substantial upfront investment, coordination among multiple stakeholders and the completion of commercial and regulatory arrangements. Consequently, reaching the FID remains a critical milestone before construction and development activities can advance.
Egypt's Infrastructure Provides an Export RouteEgypt's existing gas infrastructure is central to the project's commercial strategy. Rather than developing an entirely separate export chain, the Aphrodite partners plan to use Egyptian facilities to handle the gas and access liquefied natural gas (“LNG”) export infrastructure.
This approach could help reduce the need for additional standalone processing and export facilities while providing a route to international buyers. For Egypt, the arrangement offers an opportunity to generate economic value from existing infrastructure and strengthen its position in regional gas trading.
Badawi highlighted the importance of maximizing the country's capacity to receive, process and handle natural gas from neighboring Eastern Mediterranean producers. He also emphasized that greater regional cooperation could create additional opportunities for investment and improve the commercial utilization of available resources.
For Chevron and its partners, access to an established processing and export network could improve the project's development proposition. Nevertheless, the economic benefits will depend on construction costs, contractual terms, financing arrangements and the prices that buyers are willing to pay for the gas.
What the Project Means for Chevron InvestorsThe Aphrodite development could strengthen Chevron's natural gas portfolio by adding another potential source of production and export-oriented revenue. Its position as operator also gives the company a leading role in coordinating development activities and working with government authorities and commercial partners.
However, investors should distinguish between project progress and financial contributions. The latest discussions indicate that the partners are working toward procurement decisions and an FID, they do not establish that the project has received final investment approval or begun full-scale construction.
Capital requirements will also matter. A development budget of approximately $4 billion represents a significant commitment for the partnership, although Chevron would fund its share according to the ownership interest and the applicable contractual arrangements. Actual expenditures and project economics could change as engineering work, commercial negotiations and financing arrangements progress.
Investors should therefore monitor the FID, final pipeline agreements, financing commitments and the expected production schedule before assigning substantial near-term earnings benefits to Aphrodite. Natural gas developments typically require considerable lead times, meaning that project milestones may precede meaningful contributions to production and cash flow by several years.
Chevron's Eastern Mediterranean StrategyAphrodite fits into Chevron's broader position in the Eastern Mediterranean, where it has interests in offshore natural gas resources. Progress on the Cyprus project could also support closer energy cooperation among Cyprus, Egypt and regional market participants.
Still, execution remains the key consideration. The partners must complete outstanding agreements, settle commercial and legal matters and secure the approvals and financing required to proceed. Changes in development costs, export arrangements or the project schedule could affect the eventual returns.
ConclusionChevron's latest discussions with Egypt represent progress toward developing the Aphrodite field and establishing an export route through Egyptian infrastructure. The proposed pipeline and use of existing LNG facilities could help connect Cyprus' gas resources with international markets while creating potential commercial benefits for the partners.
For investors, the project offers a longer-term growth opportunity rather than an immediate earnings catalyst. The next important indicators will be completion of the remaining agreements, the long-lead procurement decision and the final investment decision. These milestones will provide greater clarity on the project's timing, capital requirements and potential contribution to Chevron's future natural gas business.
CVX's Zacks Rank & Other Key PicksCurrently, CVX carries a Zacks Rank #2 (Buy), while SHEL sports a Zacks Rank #1 (Strong Buy). Shell is a global energy company engaged in oil and natural gas exploration, production, LNG, refining and marketing. The company's participation provides exposure to the Eastern Mediterranean's natural gas development potential, with the proposed pipeline to Egypt offering a route to processing facilities and international LNG markets.
Investors interested in the energy sector might consider other top-ranked stocks, such as Marathon Petroleum (MPC - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is valued at $132.84 billion. The company is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. Marathon Petroleum benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.
Delek US Holdings is valued at $4.56 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Chevron při ceně ropy Brent 64 USD pokryla dividendy volným peněžním tokem; za celý rok 2025 volný peněžní tok ve výši 16,60 mld. USD převýšil dividendy o 3,849 mld. USD.
Chevron has raised its dividend for 39 straight years through oil booms, price collapses, and a pandemic quarter that brought in almost nothing. The next test is already visible on the horizon, and the math gets uncomfortable fast.
Chevron (NYSE:CVX | CVX Price Prediction) pays an annualized forward dividend of $7.12 a share, yielding 3.07%. The company reported $18.10 billion in free cash flow last quarter. WTI crude sat at $96.24 on October 6, with shares up 43.46% year to date. The payout looks secure now, but the test comes when crude falls. The EIA projects Brent at $89 in the fourth quarter and $79 in 2027.
One Quarter Showed the Dividend Relying on the Balance Sheet Oil majors sell a commodity they cannot control, so dividend coverage swings with crude prices. Chevron’s 2026 shows how wide those swings can be.
In the first quarter, operating cash flow was only $2.514 billion, while dividends cost $3.526 billion. Free cash flow came in at -$1.549 billion, dragged down by about $2.9 billion of negative timing effects. Chevron still bought back $2.5 billion of stock, and its net debt ratio rose to 17.9% from 15.6%. For that quarter, the balance sheet paid shareholders.
The second quarter reversed the picture. Operating cash flow reached $22.63 billion against $3.504 billion in dividends, and Chevron cut debt by $8.41 billion. CFO Eimear Bonner said:
“Our net debt coverage ratio improved, reflecting strong cash generation in the quarter.”
What Crude Price Does the Dividend Need? Chevron’s Q4 2025 results offer a breakeven test. Brent averaged $64. Operating cash flow of $10.789 billion covered $5.264 billion in capex and $3.404 billion in dividends with $2,121 million left over. For all of 2025, free cash flow of $16.60 billion beat dividends by $3.849 billion. Total shareholder returns were $27.1 billion, with buybacks making up the difference.
Management plans for prices below today’s. CEO Mike Wirth reaffirmed “our $6 billion guidance at $70 Brent” for affiliate distributions. Bonner said 2030 targets hold:
“…adjusted free cash flow growth, averaging greater than 10% per year, and more than 3% improvement on return on capital employed, all at flat commodity prices that are lower than today.”
The Hess acquisition helps. Wirth said those assets produce free cash flow “roughly double the incremental dividends.”
A 39-Year Raise Streak Helps Holders and Limits Management The 4% raise in January was Chevron’s 39th consecutive annual increase, putting it in rare company with the longest-streak dividend payers (we ranked ten of them by valuation in a free Dividend Kings report). Past crashes tested that run. In 2020, operating cash flow of $10.6 billion just covered $9.7 billion of dividends and did not cover capex on top of them. Q2 2020 brought in only $80 million. Even so, the quarterly rate stayed at $1.29, up from $1.19 in 2019. In 2015 the rate stayed at $1.07 for all four payments. The run gives holders confidence. It also means management keeps paying through downturns and covers the gap with debt.
How ExxonMobil and ConocoPhillips Compare ExxonMobil (NYSE:XOM) has a 43-year streak of increases and a $20 billion buyback plan for 2026. ConocoPhillips (NYSE:COP) ties payouts to cash flow, targeting 45% of CFO to shareholders. That approach reduces payouts when oil falls. Chevron must decide what to cut.
Verdict: The Dividend Is Covered by Cash, With the Balance Sheet as Backup At the current crude prices, Chevron covers its dividend with operating cash flow. The Q1 shortfall reversed when working capital unwound by $2.9 billion. The dividend stayed covered at $64 Brent, below the EIA’s 2027 forecast. The buyback would be cut first. With net debt at 0.6 times cash flow, Chevron can keep the dividend through this downturn.
Contact [email protected] for any questions or corrections.
Chevron prodá podíly v Hess Midstream a aktiva v DJ Basin výměnou za nové smluvní podmínky a 200 mil. USD; očekává snížení nákladů v Bakkenu přibližně o 50 %.
What happened Chevron Corporation (NYSE: CVX) said it signed final agreements to divest its Hess Midstream interests and DJ Basin crude oil midstream assets. The company said several subsidiaries entered the agreements with Hess Midstream LP to reshape Bakken midstream contracts and set new DJ Basin contracts. The revised Bakken agreements extend the contract terms and are expected to cut Chevron's Bakken unit midstream costs by about 50%.
Chevron will transfer its ownership interests and general partner position in Hess Midstream in exchange for the new long-term commercial terms and $200 million in cash. It will also transfer its DJ Basin crude oil midstream assets. Chevron expects the deal to fully deconsolidate Hess Midstream, including about $3.7 billion of debt. The Conflicts Committee has approved the deal, and closing still depends on customary conditions and regulatory approvals.
Key numbers Metric Latest Change Source Expected one-time after-tax loss $3 to $4 billion SEC 8-K Hess Midstream debt Chevron expects to deconsolidate $3.7 billion SEC 8-K Cash consideration $200 million Chevron news release Expected Bakken unit midstream cost reduction approximately 50% Chevron news release Expected accretion to return on capital employed 0.5% on an absolute basis Chevron news release Read more: Chevron (CVX) stock analysis and investment case Why it matters OptimistFi's case is that Chevron turns cyclical cash flow into durable shareholder returns through capital discipline and a strong balance sheet. This filing is mixed for that view because it lowers Bakken midstream costs and raises expected return on capital employed, but it also brings a $3 to $4 billion special-item loss.
Chevron said the new framework is meant to support competitive upstream development. It also expects to sustain Bakken production through technology deployment and operating changes from its global shale and tight portfolio. The $3.7 billion of debt Chevron expects to deconsolidate is 18.5 times the $200 million cash consideration.
That comparison shows the scale of the balance-sheet change against a small cash payment. The benefits are still expected, not realized. Chevron also said it cannot recognize the future Bakken cost savings as an asset.
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What's next The transaction is expected to close by year-end 2026. If it closes, Chevron expects the one-time loss and the deconsolidation of Hess Midstream to happen then. A later close would push back the lower Bakken cost structure and the new contract terms.
More from OptimistFi CVX stock: the Chevron thesis, its status and the next test to watch United States Brent Oil Fund, LP (NYSE Arca: BNO) Tracks a Supply Gap Alpha Teknova, Inc. (NASDAQ: TKNO) Adds Regulatory Support for PluriFreeze Meta Platforms, Inc. (NASDAQ: META) Has a Conditional $18 Billion Bill Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources Chevron news release — Exhibit 99.1, issued October 6, 2026 Chevron 8-K — Current report dated October 6, 2026 Read the full OptimistFi thesis on Chevron Corporation: https://optimistfi.com/stocks/CVX
See what would break the Chevron Corporation thesis and track it live on the OptimistFi Thesis-Break Engine.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Chevron CEO Mike Wirth warned Wednesday it would be “unwise” of the US to impose a ban on diesel exports, saying such a policy could actually make the global energy crisis worse.
The comments came after President Trump recently ruled out such a ban, though he threatened one last month. The commander-in-chief said the measure was not necessary after European countries heeded his demands to release fuel from their reserves.
“Export bans, be they in the US or in other countries, actually take supply off the global market and they run the risk of making the situation worse,” Wirth told CNBC’s “Squawk Box Europe.”
“The US has been a reliable supplier to the world at a time when it needs it,” he said. “And I think it would be unwise for the US to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult.”
Chevron CEO Mike Wirth (above) on Wednesday called President Trump’s proposed diesel export ban “unwise.” Bloomberg via Getty Images Trump previously said he was “very seriously” considering a ban on diesel exports from the US — the world’s biggest supplier of the substance — in a bid to lower prices ahead of the November midterm elections.
Such a ban could immediately reduce US prices by 30 or 40 cents a gallon, but the relief would be short-lived, according to Joe Adamski, managing director of ProcureAbility, a supply chain consultancy. As the US market becomes flooded with supply, producers would start losing money and move their distillate refineries elsewhere, he said.
Trump took the ban off the table on Friday, after Europe agreed to release up to 100 million barrels of diesel and crude oil. The president also signed an executive order this week allowing a more widespread use of tax-exempt diesel.
“Europe has a lot of diesel, and they’re going to be making a major world contribution, and so are we,” Trump was quoted as saying by Politico. “And we’re not going to be doing the export ban.”
Brent crude oil rose 2% to $102.55 a barrel Wednesday as traders grew concerned about dwindling reserves amid fresh Houthi attacks in Saudi Arabia and storm-related production shutdowns off the US Gulf Coast.
Asked whether global crude inventories are fragile ahead of the winter season, Wirth described it as a “very serious” situation.
“We came into this year with high inventories. High inventories in commercial stocks held by companies, high inventories in strategic stocks held by governments around the world and actually significant inventories on the water, particularly barrels that were sanctioned by the US or the EU,” the exec said.
President Trump (above) previously said he was “very seriously” considering a ban on US diesel exports. Bonnie Cash / Pool via CNP / SplashNews.com “Over the last several months, we’ve seen commercial inventories draw down, strategic stocks be released and those sanctioned barrels have been relieved and allowed to be delivered, as well.
“Those are all buffers in the system that have bought us time, but they’ve been drained. And so, we’re at much lower levels of inventory right now and it makes the system more vulnerable to disruption.”
The US Strategic Petroleum Reserve now stands at roughly 283 million barrels, its lowest level since the 1980s, after a coordinated global release of 400 million barrels earlier this year.
Wirth also said Venezuela will play a key role in the oil giant’s long-term strategy.
Gasoline and diesel prices have soared amid the war in Iran. ZUMAPRESS.com Last month, Chevron vowed to more than double its production in the country over the next five years, a major win for the Trump administration after its capture of Venezuelan dictator Nicolás Maduro in January.
A $7 billion investment in Venezuela will allow the company to increase production to 600,000 barrels a day by 2031, up from roughly 280,000 barrels per day.
“Longer term, I think Venezuela can be part of a more secure energy system. Venezuela is coming off a relatively low starting point – there has not been much investment in the country,” Wirth said.
“We have a good position there that we intend to grow, but that takes time and the amount of production that Venezuela can add over the next short period of time is dwarfed by the amount that is at risk in the Middle East.”
Shares in Chevron are up 33% so far this year. In July, the energy giant reported its highest quarterly profits in six years, beating Wall Street estimates on soaring crude oil prices.
Key Takeaways Chevron is raising its PEL 90 stake to 45.1% through a $11 million deal with Trago Energy.Nabba-1X is planned for Q4 2026, making the well a key near-term catalyst for Chevron.Equinor's entry shares exploration exposure as Chevron maintains operatorship of PEL 90. Chevron Corporation (CVX - Free Report) is strengthening its position in Namibia’s Orange Basin as a key exploration catalyst. The company’s affiliate Harmattan Energy Ltd. recently agreed to acquire Trago Energy Pty Ltd.’s 10% participating interest in Petroleum Exploration License 90 (PEL 90). Trago, a subsidiary of Custos Energy (Pty) Ltd., will receive $11 million in cash at closing, along with contingent consideration linked to future appraisal and production milestones. The transaction remains subject to government, regulatory and third-party approvals.
This agreement is notable because it follows Chevron’s decision in August to farm out a 17.4% interest in PEL 90 to Equinor (EQNR - Free Report) . Rather than simply reducing its exposure to the license, Chevron is now adding another 10% interest. The transaction would increase Chevron’s participating interest in PEL 90 if both the Equinor farm-out and the Trago acquisition are completed.
Chevron Reshapes Its PEL 90 PositionBefore the Equinor transaction, Chevron held a 52.5% participating interest in PEL 90. QatarEnergy owned 27.5%, while Trago Energy and Namibia’s state-owned oil company NAMCOR each held 10%. Equinor’s planned acquisition would lower Chevron’s interest to 35.1% once completed. The latest agreement would lift it to 45.1%, assuming both transactions close.
That ownership structure gives Chevron a sizeable economic interest without carrying the entire exploration burden. Equinor’s planned entry would add another major international energy company to the PEL 90 partnership. Chevron, meanwhile, continues to operate PEL 90, preserving control over the exploration program.
The transaction comes as Chevron prepares for another exploration well on PEL 90. PEL 90 covers Block 2813B in the Orange Basin, a frontier region that has drawn major industry attention because of discoveries in the broader basin. The license covers about 5,433 square kilometers, according to Sintana Energy, and is located near the Venus discovery operated by TotalEnergies (TTE - Free Report) .
Nabba-1X Offers a Near-Term CatalystFor investors, the next major development to watch is the planned Nabba-1X exploration well. Chevron plans to drill the Nabba-1X exploration well on PEL 90 in the fourth quarter of 2026 as part of a wider multi-well exploration campaign across Sub-Saharan Africa.
Nabba-1X will be Chevron’s second exploration well offshore Namibia after Kapana-1X reached total depth in January 2025. The earlier well did not encounter commercial hydrocarbons, although the drilling program generated geological information that the company can use in planning future activity.
That makes Nabba-1X a potentially important value driver. A commercial discovery would strengthen the case for further appraisal and development across PEL 90 and could increase the long-term value of Chevron’s position. However, the project remains at the exploration stage, so investors should not treat potential resources as established reserves.
Broader African Exploration PushThe Namibia transaction also fits Chevron’s broader push to expand its frontier exploration portfolio in Africa. The company has outlined activity across Namibia, Angola, Guinea-Bissau and Equatorial Guinea as part of a multi-well program designed to pursue high-impact opportunities. In September, Chevron outlined exploration activity across several Sub-Saharan African basins as part of its broader exploration program.
For Chevron, this strategy can add future production opportunities without relying solely on mature assets. Frontier exploration, however, comes with significant geological and execution risks. The outcome of individual wells can be difficult to predict, and unsuccessful drilling can delay development plans while increasing capital requirements.
Investment TakeawayThe Trago transaction gives Chevron a larger stake in PEL 90 at an important point in the asset’s exploration cycle. The $11 million upfront payment is modest relative to Chevron’s scale, but the additional interest increases its exposure to any success from Nabba-1X and subsequent appraisal activity. Contingent consideration tied to commercial production also underscores the potentially longer-term nature of the transaction.
At the same time, investors should recognize that the deal does not remove the uncertainty surrounding the asset. Completion of the transaction still requires approvals, while the upcoming well must establish commercial potential before PEL 90 can become a meaningful production asset.
Overall, Chevron’s decision to increase interest in PEL 90 signals that it sees sufficient potential in the acreage to justify a larger position ahead of Nabba-1X. The well’s result should therefore be the key near-term event to watch, with a successful outcome capable of improving the long-term growth profile of Chevron’s upstream portfolio.
CVX's Zacks Rank & Another Key PickCurrently, CVX and EQNR carry a Zacks Rank #2 (Buy) each, while TTE has a Zacks Rank #3 (Hold).
Equinor is a Norway-based integrated energy company with operations spanning oil and gas, renewables and low-carbon solutions. The company’s upstream portfolio is anchored by the Norwegian Continental Shelf, while its international operations include oil and gas assets across the United States, Brazil, Angola, the United Kingdom and Canada. On the other hand, TotalEnergies is a France-based global integrated energy company engaged in oil, natural gas, biofuels, renewables and electricity. The company operates across the energy value chain in about 120 countries and produced 2.5 million barrels of oil equivalent per day in 2025, including 46% from natural gas.
Investors interested in the energy sector might consider another top-ranked stock, such as Delek US Holdings (DK - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings is valued at $4.54 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
A prominent fund manager went on live television to call Chevron and ExxonMobil cheap laggards, but the actual performance data from the past year tells a very different story about who is really falling behind.
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On CNBC on Friday, Oct. 2, Michael Cuggino, president of Permanent Portfolio Family of Funds, said energy stocks “have not kept up with the broader market even as we speak.” He used that point to recommend Chevron (NYSE:CVX | CVX Price Prediction) and ExxonMobil (NYSE:XOM) as cheap total-return plays. The performance numbers point the other way.
Oil Majors Have Outrun the Index by a Wide Margin As of Friday’s close on Oct. 2, Exxon is up more than 34% over the past year at $164.39. Chevron is up nearly 33% at $207.20. Over the same period, the S&P 500 gained less than 13%. Chevron also set a 52-week high of $214.06 on Sept. 11. Over the last month, the benchmark index edged up 0.75%, while Chevron lost 2.16% and Exxon gained 0.15%.
Cuggino’s Valuation Case Holds Up, With One Adjustment Cuggino’s argument is about price. He said both stocks trade at about 13 times next year’s earnings, with dividend yields of 3.5% and 2.5%. He compared that with an S&P 500 offering a 4.5% earnings yield. Checked against consensus 2027 EPS of $14.1367 for Chevron and $11.0760 for Exxon, both stocks trade closer to 15x. Their current yields are 3.42% and 2.53%. That is a little more expensive than the on-air figure, but still a discount to the market.
Others share his view. On Sept. 8, Jim Cramer called Chevron the portfolio version of a kicker: an excellent 3.44% yield that usually doesn’t move with the rest of the market.
Rising Earnings Estimates Explain the Rally Chevron’s second quarter brought adjusted EPS of $6.06, revenue up 51.4% to $67.20B, and free cash flow of $18.1 billion. Brent averaged $104 per barrel in the quarter. CEO Mike Wirth said: “Costs always matter. They always will.”
Analysts have been raising their numbers. The 2027 consensus for Chevron was $12.6254 90 days ago. Over the past 30 days, 10 analysts revised up and 3 revised down. Exxon CEO Darren Woods described a quarter with “more than $14 billion of earnings, more than $17 billion of free cash flow, and a more than $7 billion reduction in net debt.”
Microsoft Is Buying Chevron’s Power for AI Chevron signed a 20-year take-or-pay power purchase agreement with Microsoft (NASDAQ:MSFT). The deal covers 2.67 gigawatts of capacity for a West Texas data center complex, and Chevron expects “mid-teens returns.” Wirth said the company is ready “to help power American AI dominance.” The companies building AI depend on energy majors to grow, and this deal gives Chevron a long-dated source of committed revenue.
A Slide in Crude Would Undercut the Pitch WTI peaked at $102.13 in May and fallen to $83.9 by August. In its May outlook, the EIA forecast Brent averaging $79.39 in 2027. If prices follow that path, estimates shrink and today’s 15x multiple looks less cheap. Wall Street is also split: Chevron has 20 Buy ratings or Strong Buy ratings, while Exxon has 15 Hold ratings.
The stocks have already outpaced the market on returns. The case for owning them now rests on valuation, income and earnings revisions. Watch the third-quarter reports, where consensus calls for $4.7322 per share at Chevron and $3.6501 at Exxon.
Contact [email protected] for any questions or corrections.
Chevron rozšiřuje LNG síť napříč Austrálií, Asií a Tichomořím, ve východním Středomoří a západní Africe. V USA na pobřeží Mexického zálivu zvýšila smluvní kapacitu odběru LNG na 7 milionů tun ročně.
Key Takeaways Chevron's LNG portfolio spans Australia, Asia Pacific, the Eastern Mediterranean and West Africa.Gorgon and Wheatstone supply about 40% of Western Australia's domestic gas and 9.5M tons to Japan.Chevron's U.S. Gulf Coast LNG offtake capacity has risen to 7M tons annually, with some volumes from 2026. Chevron Corporation (CVX - Free Report) is building its natural-gas strategy around a broad network rather than a single growth market. In Australia, the company operates the Gorgon and Wheatstone LNG projects, with most of Chevron’s share of LNG production from those assets sold under long-term contracts. Gorgon and Wheatstone account for about 9.5 million tons per year of annual LNG contract volumes into Japan. The portfolio also extends across Asia Pacific, the Eastern Mediterranean and West Africa, giving Chevron several supply points, customer markets and avenues for long-term gas commercialization.
Australia remains a major anchor for Chevron’s gas business, but the assets serve more than export demand. Gorgon and Wheatstone together supply about 40% of Western Australia’s domestic gas. A new agreement with Alinta Energy covers 46 petajoules of gas over five years beginning in July 2027, sourced from Chevron’s interests in Gorgon, Wheatstone and the North West Shelf. This combination of LNG exports and domestic sales gives Chevron multiple routes to monetize production while supporting long-duration customer relationships across power, industry and household demand.
Chevron is also widening its LNG reach through the U.S. Gulf Coast, where long-term purchase agreements have lifted contracted LNG offtake capacity to 7 million tons annually, with some volumes scheduled to begin in 2026. The company also approved an expansion of the Leviathan gas project offshore Israel in January 2026, adding another potential source of regional supply. With exposure across production, liquefaction, shipping, pipelines, marketing and trading, Chevron is positioning natural gas as an important part of its long-term global growth strategy.
This growing emphasis on natural gas is not limited to one major energy player. Across the industry, LNG is increasingly being viewed as a long-term growth avenue, supported by expectations for rising demand from power generation, industrial use and global trade
Natural Gas Strategies Across Industry PeersExxonMobil Holdings (XOM - Free Report) also sees gas as a long-duration growth area. ExxonMobil expects global natural-gas demand to reach about 520 billion cubic feet per day by 2050, roughly 20% above current levels, with oil and gas together still supplying more than half of global energy needs. LNG remains among ExxonMobil’s advantaged businesses, supporting investment in projects that can serve rising electricity and industrial demand.
Shell plc (SHEL - Free Report) is leaning further into LNG as a core growth business. Shell expects global LNG demand to rise about 65% by 2050 and is targeting LNG sales growth of 4-5% annually through 2030. Shell also approved LNG Canada Phase 2 in September 2026, which is designed to double site capacity to 28 mtpa and provide Shell with nearly 6 mtpa of additional LNG.
Chevron uvedl, že robotické inspekce nádrží od roku 2024 ušetřily více než 25 milionů USD a asi 43 000 pracovních hodin. Robotické čištění přineslo více než 6 milionů USD úspor a snížilo zhruba 28 000 pracovních hodin. Celkově robotika přinesla více než 92 milionů USD úspor a snížila přes 143 000 rizikových hodin.
Key Takeaways Chevron says robotic tank inspections saved over $25M and about 43,000 work hours since 2024.Robotic tank cleaning delivered more than $6M in savings and cut roughly 28,000 work hours.Chevron reports robotics efforts saved over $92M and eliminated more than 143,000 at-risk hours. Chevron Corporation (CVX - Free Report) is taking robotics further into field operations as part of a broader effort to improve safety, efficiency and data quality. Chevron says robots and remotely operated tools are now supporting tank inspections, cleaning, plant walkabouts and remote monitoring, reducing the need for employees to enter confined or otherwise hazardous areas. Its latest Form 10-Q does not separately quantify robotics benefits, but identifies technology-enabled productivity as one contributor to the company’s broader cost-reduction program and evolving operating model across its global businesses over the longer term.
Tank operations show how the strategy is producing tangible results. Chevron says robotic tank inspections have saved more than $25 million and about 43,000 work hours since 2024, while robotic cleaning has generated more than $6 million in savings and reduced roughly 28,000 hours. Submersible inspection robots can examine tank bottoms without fully draining and venting the equipment, which can limit downtime and improve data quality. Chevron has deployed such systems at multiple U.S. facilities, including its El Segundo refinery in California, where the technology supports safer maintenance work and inspections.
Chevron is also extending robotics beyond tanks. Drones are used for visual and thermal inspections and emissions detection, while the company is developing autonomous “drone-in-a-box” systems to reduce field visits. Its Spot robots can patrol facilities, inspect equipment and collect images that help maintenance teams flag potential issues earlier. Across robotics initiatives, Chevron reported more than $92 million in savings and over 143,000 at-risk hours eliminated since 2024, underscoring how automation can support reliability and efficiency while keeping workers farther from hazardous tasks across a wider operating footprint over time.
To deepen the robotics discussion, it is useful to look at how other global energy majors are deploying similar technologies. Shell plc (SHEL - Free Report) and TotalEnergies SE (TTE - Free Report) are also using autonomous systems to improve inspection work, reduce human exposure to hazardous environments and strengthen operational monitoring. Their efforts show that robotics is becoming a broader industry tool rather than a Chevron-specific initiative.
Currently, Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer MovesShell is expanding robotics across energy facilities to improve inspection quality and reduce worker exposure to hazardous environments. Shell uses land, subsea and aerial systems, including Sensabot and ExR-1, to support gas detection, equipment monitoring and remote data collection. By combining robotics with advanced imaging and sensing technologies, Shell is building a more automated inspection framework aimed at strengthening safety, reliability and operational consistency.
TotalEnergies is advancing robotics through its ARGOS program, which focuses on autonomous inspection across complex industrial sites. TotalEnergies uses robotic systems to detect gas leaks, monitor temperatures, collect operating data and generate 3D maps while navigating difficult environments. Through trials in locations including the North Sea and Angola, TotalEnergies is moving toward broader remote oversight, autonomous monitoring and integrated robotic operations.
Wall Street sees modest upside for Chevron, but a seven-quarter streak of earnings beats, a 20-year AI power deal, and a valuation well below the broader market suggest analysts are still underestimating what this stock can do.
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In Chevron’s second quarter, every part of the business ran strong at once. Chevron (NYSE:CVX | CVX Price Prediction) set a U.S. upstream production record of 2,077 MBOED, ran its U.S. refineries at 97% capacity, and captured $1.5 billion in Hess savings within a year of closing. That savings figure beat the original target by 50%.
CEO Mike Wirth credited “disciplined investment and strong execution that drove record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets.”
Shares are up 40.02% year-to-date and 152.16% over five years. Brent averaged $104 in Q2, but cost cuts, Guyana, and a new AI power business give this rally more runway. Here’s how Chevron could hit $250 per share in 2027.
Analysts See Modest Upside While Chevron Keeps Beating Them Wall Street’s average price target of $223.92 implies 7.8% upside from $207.63. Sentiment leans bullish, with 6 Strong Buy and 14 Buy ratings against one Sell.
Chevron has exceeded consensus EPS for seven consecutive quarters. Q1 EPS was $1.41 versus a $0.9687 estimate. Q2 adjusted EPS jumped to $6.06 as revenue rose 51.4% to $67.20 billion. Such a run suggests current forecasts are conservative.
Here’s What It Takes for Chevron to Reach $250 Chevron trades at 15x forward earnings, cheaper than the S&P 500’s roughly 21x to 23x. A move to $250 would be a 20.4% gain, raising the multiple to about 18x forward earnings, still below the market.
Management’s 2030 plan calls for adjusted free cash flow growth averaging greater than 10% annually, assuming flat oil prices below today’s levels. For that growth, 18x is reasonable.
What Could Push Chevron to $250? Built-in savings: Chevron reached $3 billion in annual run-rate cost cuts six months early. CFO Eimear Bonner said the savings are “built into the business.” AI power: Project Kilby is a 20-year take-or-pay deal to supply Microsoft (NASDAQ:MSFT) with 2.67 gigawatts of power. It targets mid-teens returns from cash flows that don’t depend on commodity prices. Management calls it a repeatable model and says talks for more deals are advanced. Guyana: Free cash flow from the Hess assets has been “roughly double the incremental dividends,” and Guyana should keep high-margin oil growing into the 2030s. Refining: Downstream earnings reached $4.87 billion, up from $737 million a year ago. Management said “products are tighter than crude around the world.” Capital efficiency: Chevron expects to spend 25% less capex per barrel in 2026. Shareholder returns: Chevron bought back $3.12B of stock in Q2 and pays a $1.78 quarterly dividend. It has raised that dividend for 39 consecutive years. Growth options: These include Iraq’s West Qurna 2, Venezuela and Argentina, where management wants to grow the business 3x by 2035. Chevron is one piece of a broader shift: the AI expansion runs on power, cooling, and networking, not just chips. We highlighted seven of those non-chipmaker suppliers in a free report you can grab here.
There are real risks. A long shutdown of the CPC pipeline, which carries Chevron’s Kazakhstan oil to market, conflict in the Middle East, and a return to normal refining margins could all slow progress.
Chevron’s History Says a 20% Year Is Well Within Reach On a dividend-adjusted basis, Chevron has exceeded a 20.4% gain in eight calendar years since 2000. Total return reached 58% in 2022, 46% in 2021, 37% in 2016 and 35% in 2003.
Back-to-back big years have happened too, with 34% in 2006 followed by 31% in 2007.
$250 Is a Stretch, and Chevron Has the Tools to Get There Reaching $250 requires a 20.4% gain, above the Street’s target. A seven-quarter beat run, $18.10B of Q2 free cash flow, commodity-proof power contracts, and a valuation below the market support it. Chevron has the tools to deliver outsized returns in 2027.
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ExxonMobil uzavřel s Petrovietnamem a jeho dceřinou společností BSR rámcovou dohodu o dodávkách ropy pro rafinerii Dung Quat, která má zajistit minimálně 2 miliony barelů ročně. Chevron se s Petrovietnamem dohodl na širší spolupráci v ropě, LNG, LPG, rafinérských surovinách i infrastruktuře.
Key Takeaways ExxonMobil's agreement could secure at least 2 million barrels of crude annually for Dung Quat Refinery.Chevron's framework spans crude oil, LNG, LPG, refinery feedstock and supporting infrastructure.BSR can now process 40 crude grades, expanding flexibility to source feedstock across global regions. Chevron Corporation (CVX - Free Report) and ExxonMobil Holdings Corporation (XOM - Free Report) are strengthening their potential participation in Vietnam’s energy market through separate agreements with Petrovietnam and its refining subsidiary. Petrovietnam and Chevron signed a framework cooperation agreement covering potential cooperation in crude oil, liquefied natural gas (“LNG”), liquefied petroleum gas (“LPG”) and refinery feedstock. Separately, Petrovietnam Refining and Petrochemical Corporation (“BSR”) signed a crude oil supply framework agreement with ExxonMobil Asia Pacific for the Dung Quat Refinery in central Vietnam.
These agreements come as BSR seeks to diversify its crude oil sources and improve the flexibility of Dung Quat Refinery amid changing global energy-market conditions. For Chevron and ExxonMobil, the developments could open additional opportunities to supply energy products to Vietnam while expanding their relationships with one of the country’s key energy companies.
ExxonMobil Agreement Adds Crude Supply OptionThe agreement between BSR and ExxonMobil Asia Pacific is focused specifically on crude oil supply for the Dung Quat Refinery. According to Petrovietnam, the agreement is expected to help secure a minimum crude oil supply of 2 million barrels per year for the refinery. This provides BSR with another international source of feedstock as it works to strengthen supply security and reduce reliance on traditional sources.
BSR has been actively expanding its crude supply network in 2026. The company said it has been evaluating crude sources from multiple regions, including the United States. In 2025, Dung Quat Refinery imported approximately 8.28 million metric tons of crude oil, with imported crude accounting for about 31% of total feedstock. For 2026, BSR expects imported crude to represent approximately 15% of its feedstock, with supplies coming from regions such as West Africa, the Mediterranean and Southeast Asia.
The addition of ExxonMobil as a potential supply partner could therefore further diversify BSR’s feedstock portfolio and provide greater flexibility in crude procurement.
Broader Crude Basket Improves Refinery FlexibilityBSR has also expanded the number of crude grades that Dung Quat can process. Since the beginning of 2026, the refinery has successfully tested three additional crude types, bringing its total processing capability to 40 grades, including 12 domestic and 28 imported grades.
The refinery has also developed the capability to process Nigeria’s Erha crude at a maximum blending ratio of approximately 45% by volume. In addition, BSR can process Sao Vang-Dai Nguyet condensate at up to approximately 12% by volume.
A broader crude basket should allow BSR to select feedstock based on availability, pricing and refinery economics. This flexibility could become increasingly important when crude markets face supply disruptions or significant price differences between grades and regions.
For ExxonMobil, the broader processing capability at Dung Quat potentially creates more flexibility in supplying crude that meets the refinery’s specifications. However, the 2-million-barrel annual figure disclosed by Petrovietnam represents a minimum supply level, and the financial value and detailed delivery schedule of the agreement have not been disclosed.
Chevron Framework Covers Multiple Energy AreasChevron’s agreement with Petrovietnam is broader than the ExxonMobil arrangement. The two companies established a formal framework for cooperation that could support diversification of Vietnam’s sources of crude oil, LNG, LPG and refinery feedstock. The framework also includes potential cooperation in import infrastructure, energy storage, financial and commercial solutions, technology and emissions reduction.
BSR separately stated that it had signed crude oil supply agreements with Chevron as part of its efforts to secure stable refinery feedstock. This indicates that Chevron’s relationship with Vietnam could extend beyond the broader Petrovietnam framework and include opportunities related to crude supply for Dung Quat.
For Chevron, participation across crude, LNG and LPG supply could provide additional commercial opportunities in Vietnam’s energy market. The company’s global supply, transportation and energy-marketing capabilities could also support potential cooperation in infrastructure and other areas identified under the framework.
What It Means for CVX and XOMVietnam’s efforts to diversify crude supplies could create incremental opportunities for international energy companies as BSR strengthens the feedstock flexibility of Dung Quat Refinery. The refinery’s ability to process a growing range of crude grades should provide greater scope to source barrels from different regions based on market conditions.
For ExxonMobil, the agreement provides a potential outlet for at least 2 million barrels of crude annually while strengthening its relationship with BSR. For Chevron, the broader framework creates potential opportunities across several segments of Vietnam’s energy value chain, including crude oil, LNG, LPG and supporting infrastructure.
The agreements do not yet provide enough information to assess their direct financial impact on CVX or XOM. Investors should monitor additional announcements regarding actual crude volumes, pricing, delivery schedules and the implementation of the broader Chevron cooperation framework. These developments will determine the extent to which the agreements translate into meaningful revenues and earnings opportunities for the two energy majors.
CVX's Zacks Rank & Key PicksCurrently, CVX and XOM have a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector might consider some better-ranked stocks, such as Magnolia Oil & Gas Corp (MGY - Free Report) and Delek US Holdings (DK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Magnolia Oil & Gas is valued at $5.62 billion. It is an independent oil and natural gas company focused on the acquisition, development, exploration and production of oil, natural gas and NGLs in South Texas. Magnolia Oil & Gas’ operations are concentrated in the Eagle Ford Shale and Austin Chalk formations across the Karnes and Giddings areas.
Delek US Holdings is valued at $4.13 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Chevron a Egypt urychlují dohody a postupy pro napojení plynového pole Aphrodite na egyptskou infrastrukturu. Projekt má vést plyn z Kypru do Egypta ke zpracování.
Key Takeaways Chevron and Egypt are accelerating agreements needed to connect Aphrodite to Egyptian infrastructure.Aphrodite plans four wells linked to a floating unit, with gas transported to Egypt for processing.Chevron is also exploring expanded natural gas activities in Egypt's Western Mediterranean. Chevron Corporation (CVX - Free Report) and Egypt are working to accelerate the agreements and procedures needed to connect Cyprus’ Aphrodite natural gas field to Egyptian infrastructure. The discussions highlight efforts to move the Eastern Mediterranean gas project toward implementation while expanding Chevron’s exploration activities in Egyptian waters.
Aphrodite Connection Moves ForwardEgyptian petroleum minister Karim Badawi and Chevron’s president of Base Assets and Emerging Countries, Javier La Rosa, discussed the technical, financial and commercial frameworks required to finalize the Aphrodite project. Egypt is seeking to speed up the remaining procedures and agreements to facilitate the field’s connection to its infrastructure.
Aphrodite, located in Cyprus’ offshore Block 12, was discovered in 2011. The field has approximately 98 billion cubic meters of contingent resources, with potential for an additional 26 billion cubic meters of prospective resources, according to the document. The development plan calls for four production wells linked to a floating production unit, with gas transported to Egypt for processing.
Egypt to Support Gas Export RouteThe project is expected to strengthen Egypt’s role in handling Eastern Mediterranean gas. An agreement signed in April calls for Egypt’s EGAS to import the full production from Aphrodite, with around 100 billion cubic meters of gas expected to be supplied over 15 years.
The broader strategy involves using Egypt’s existing gas processing and LNG infrastructure to provide an export route for Cypriot offshore resources. Cairo is also pursuing connections for other regional discoveries, which could increase utilization of its infrastructure while supporting Cyprus’ efforts to commercialize offshore gas resources.
Chevron Eyes More Mediterranean ExplorationBeyond Aphrodite, Chevron and Egyptian officials discussed expanding the company’s natural gas exploration activities in the Mediterranean, particularly in the Western Mediterranean. Egypt said it intends to maintain a supportive investment environment for international energy companies seeking to increase exploration and drilling activities.
Chevron also reaffirmed its commitment to maintaining investments and activities in Egypt and strengthening cooperation with the Ministry of Petroleum and Mineral Resources and its partners. La Rosa praised the ministry’s support for accelerating agreements and joint projects and reiterated Chevron’s intention to continue working according to targeted programs and timelines.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies, 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 Delek US Holdings, Inc. (DK - Free Report) , Eni S.p.A. (E - Free Report) and Phillips 66 (PSX - 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.
Brentwood, 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 earnings indicates 127.7% year-over-year growth.
Eni, based in Rome, Italy, is an integrated energy company. Its upstream operations cover the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for E’s 2026 earnings indicates 76.9% year-over-year growth.
Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. The Zacks Consensus Estimate for PSX’s 2026 earnings indicates 339.1% year-over-year growth.
Chevron letos zahájí seizmický průzkum v řeckých vodách, čímž rozšíří své působení ve východním Středomoří. Firma už má v regionu dvě plynová pole u Izraele, jedno na Kypru, provozuje dva průzkumné bloky v Egyptě a má dohodu o průzkumu v Libyi.
Last month, I wrote about how Chevron (CVX +1.77%) is well-positioned to benefit from the U.S. deal with Venezuela to develop some 65 billion barrels of that country's enormous proven oil reserves.
But there's another region Chevron is moving into, which I think will also eventually help the stock. This week brought preliminary reports that the Houston-based oil and gas giant plans to begin seismic research in waters off Greece later this year, expanding its offshore exploration footprint in the Eastern Mediterranean.
The news came from Greek Environment and Energy Minister Stavros Papastavrou, who was in the U.S. to attend United Nations meetings. The official met with a Chevron executive and agreed that the exploration could begin this year. A seismic exploration is the initial step in assessing hydrocarbon potential and must be conducted before any test drilling can begin.
Image source: Getty Images.
Earlier this year, Chevron was awarded four offshore leases to explore for oil around Greece. The oil giant already has assets in the Mediterranean, including two gas-producing fields off Israel and one in Cyprus. It also operates two exploration blocks in Egypt, with an agreement to explore for oil in Libya.
Oil prices are expected to remain elevated Of course, oil stocks have gyrated this year with crude prices, which have moved in response to developments in the war in the Persian Gulf. But this month, Chevron CEO Mike Wirth told a conference that various mechanisms capable of moderating oil prices -- including strategic reserves and commercial inventories among them -- are now largely spent. He suggested that even a quick and unexpected end to the conflict with Iran wouldn't likely bring prices down softly or quickly.
In addition, even when oil prices settle back to pre-war levels, a global shortage of refining capacity will remain. That, too, is a big plus for Chevron, with its spare capacity.
That's good for Chevron shareholders, as higher oil prices will boost Chevron's revenue and free cash flow in the short term. Indeed, the company reported net income of $12 billion in the second quarter, almost 400% higher than the year-ago quarter. It beat Wall Street's earnings estimates by $0.50 a share, at $6.06.
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The stock is up about 34% year-to-date, and Wall Street sees it going higher from here. The average analyst price target is about $224, representing a 10% increase over the current price of $204. Of 25 analysts tracked by Yahoo, 20 rate the stock a "Buy" or a "Strong Buy."
New hydrocarbon sources, such as the potential fields in the Eastern Mediterranean, will only bolster Chevron's position.
Chevron dosáhl ročních strukturálních úspor ve výši 3 mld. USD o šest měsíců dříve, než plánoval. V roce 2026 čeká o 25 % nižší kapitál na barel ropného ekvivalentu než v roce 2025.
Key Takeaways Chevron reached $3B in annual structural cost reductions six months ahead of schedule.Chevron expects 25% lower capital per barrel of oil equivalent in 2026 versus 2025.Technology, portfolio optimization and global capability centers are driving efficiency gains. Chevron Corporation’s (CVX - Free Report) recent quarterly performance highlights one aspect of its strategy that deserves particular attention: structural cost reduction. Rather than relying solely on higher commodity prices to improve profitability, the company has been working to lower the underlying cost of running its operations.
Chevron achieved $3 billion in annual run-rate structural cost reductions since 2024, reaching its target six months ahead of schedule, and it also targets $3-$4 billion of structural cost reductions by the end of 2026. Management noted that more than 70% of these savings came from efficiency improvements, an important distinction because operational efficiencies can provide benefits that persist beyond short-term spending cuts.
The impact is particularly visible in Chevron’s shale operations. The company expects to spend 25% less capital per barrel of oil equivalent in 2026 compared with 2025. CVX also achieved savings that have largely offset inflationary pressures while allowing the company to continue growing production across key assets, including the Permian, Gulf of America and Guyana.
Technology and operational changes are supporting this efficiency push. Chevron’s cost-reduction efforts include portfolio optimization, greater use of technology to enhance productivity and changes in how and where work is performed, including expanded use of global capability centers.
The broader significance is resilience. Energy prices inevitably fluctuate, but a structurally lower cost base can help Chevron remain competitive across commodity cycles. By combining disciplined spending with operational improvements, the company is creating a business capable of generating more value from its existing assets rather than depending entirely on higher production or favorable oil prices.
Other Energy Peers That Follow Cost Reduction StrategyCost efficiency has become an important competitive battleground for major oil companies, and Chevron is not alone in this strategic program. A few other energy companies are also following the same.
ExxonMobil Holdings Corporation (XOM - Free Report) continues to make strong progress on its structural cost-saving program, aimed at offsetting inflation and the higher operating expenses associated with growth. XOM has generated $16.3 billion in cumulative structural cost savings since 2019 and targets $20 billion by 2030. Savings have primarily come from business transformation, greater end-to-end accountability and consolidation of centralized organizations. The newly formed global operations organization is expected to unlock additional efficiencies by spreading best practices across the portfolio. ExxonMobil is also developing an enterprise-wide ERP system that could further improve efficiency. Despite inflation and significant business growth, the company expects to keep cash costs broadly flat, highlighting the effectiveness of its cost discipline.
Shell plc (SHEL - Free Report) is making strong progress on its structural cost reduction program, with $700 million in savings delivered so far in 2026. The company’s broader $5 billion-$7 billion target is already about halfway achieved, ahead of schedule. Shell’s initiative goes beyond simply cutting expenses and focuses on enhancing free cash flow by improving asset reliability and availability, strengthening business models, turning around underperforming operations and creating a leaner, more focused organization. Management sees additional opportunities and is pushing toward the upper end of the target range. Shell also plans to use AI and efficiency benchmarks to unlock further value, making cost discipline an ongoing cultural transformation rather than a one-time savings exercise.
The Zacks Rundown on ChevronShares of Chevron have gained 19.4% in the past three months, outperforming the Oil/Energy sector’s rise of 9.8%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of forward price-to-earnings ratio — Chevron is trading at a premium compared with the industry average. The stock is also trading above its five-year mean of 11.81.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVX’s 2026 earnings is pegged at $16.52 per share, indicating 126.6% year-over-year growth.
Image Source: Zacks Investment Research
CVX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TotalEnergies prodalo v roce 2025 44 milionů tun LNG a očekává růst objemů o 50 % mezi lety 2025 a 2030. Chevron mezitím rozšiřuje LNG portfolio a cílí na kapacitu zhruba 20 Mtpa, z toho 16 Mtpa z vlastních projektů a 4 Mtpa z kontrahovaných dodávek z amerického pobřeží Mexického zálivu.
Key Takeaways TotalEnergies has a larger LNG footprint, with volumes expected to rise 50% from 2025 to 2030.Chevron's production rose 20% year over year, boosted by Guyana, the Permian and Hess synergies.Chevron's 2026 earnings estimates rose more sharply, supported by production growth and cost savings. Chevron Corporation (CVX - Free Report) and TotalEnergies SE (TTE - Free Report) are two major integrated energy companies with significant oil and natural gas operations. Both are benefiting from a supportive commodity-price environment, but their LNG strategies provide an interesting basis for comparison.
Chevron is expanding its natural gas and LNG portfolio while benefiting from strong production growth following the Hess acquisition. TotalEnergies, meanwhile, already has a large global LNG business and is pursuing additional projects to expand its position across the LNG value chain.
With energy security becoming increasingly important and global LNG demand continuing to grow, investors may be wondering which energy major offers the stronger combination of growth, valuation and earnings momentum. Let's dive deep and closely compare the fundamentals of both stocks to determine which one is a better investment now.
Chevron's Production Growth Strengthens Its LNG StoryChevron delivered a strong second quarter, with earnings of $12.1 billion and adjusted earnings of $12 billion. Worldwide production increased 20% year over year to 4.07 million barrels of oil equivalent per day, while U.S. production reached a record level. The company also achieved $3 billion in annualized structural cost savings and $1.5 billion in annualized Hess-related synergies.
The Hess acquisition has significantly strengthened Chevron's production profile, particularly through its interest in Guyana's Stabroek Block. Management expects production to continue growing, supported by Guyana, the Permian Basin, Kazakhstan and other projects.
Chevron is also becoming more aggressive in LNG. The company expects to have about 20 million metric tons per annum (Mtpa) of LNG supply capacity, including 16 Mtpa of net gas production from its projects and 4 Mtpa of contracted U.S. Gulf Coast supply. Chevron is also evaluating additional opportunities in Argentina, the Eastern Mediterranean, Australia and Africa. The push reflects growing demand for diversified and reliable gas supplies.
TotalEnergies Has a Larger LNG FootprintTotalEnergies brings a more established LNG platform to the comparison. The company sold 44 million tons of LNG in 2025 and describes itself as the world's third-largest LNG player. It expects LNG volumes from equity production and long-term third-party purchases to increase 50% between 2025 and 2030.
The company is continuing to add projects to its portfolio. In July, TotalEnergies shipped the first LNG cargo from the ECA LNG project in Mexico and will offtake 1.7 million tons per year for 20 years once commercial operations begin.
TotalEnergies also approved development of the Cronos gas field in Cyprus, with production expected to start in 2028. The project is designed to supply European markets through existing LNG infrastructure in Egypt.
These developments give TotalEnergies substantial exposure to the LNG growth opportunity, while its integrated model also provides exposure to oil, refining, trading and electricity.
Chevron vs. TotalEnergies: Which Stock Has the Lower P/E?
Image Source: Zacks Investment Research
Valuation is one area where the two stocks show a notable difference. Based on the data, Chevron trades at a forward P/E of 13.35X, compared with 8.46X for TotalEnergies.
Chevron's higher multiple reflects its strong production growth, Hess-related synergies and high-quality upstream assets. However, TotalEnergies offers investors exposure to a substantial LNG business at a considerably lower earnings multiple.
The valuation gap is also consistent with recent peer data showing TotalEnergies trading below Chevron on forward earnings multiples.
TotalEnergies Leads Chevron in One-Year Stock Performance
Image Source: Zacks Investment Research
TotalEnergies has outperformed Chevron over the past year. The chart shows TTE's share price gaining 48.8%, compared with a 30.7% increase for CVX.
TotalEnergies' performance reflects investor interest in its integrated energy model, LNG exposure and capital returns. TTE reported second-quarter adjusted net income of $6 billion and cash flow of $9.8 billion, while its gearing ratio declined to 13%.
Chevron, meanwhile, continues to benefit from strong operating momentum. Its second-quarter cash flow from operations reached $22.6 billion, compared with $8.6 billion in the year-ago quarter.
Chevron Leads in Earnings Estimate Revisions
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate trend for CVX's third-quarter 2026 earnings has increased 18.98%, while the fourth-quarter estimate has risen 20.83%. Meanwhile, the consensus estimates for fiscal 2026 and 2027 have increased 11.55% and 12.16%, respectively.
In comparison, the Zacks Consensus Estimate for TTE's third-quarter 2026 earnings has increased 9.72%, while the fourth-quarter estimate has risen 31.12%. The consensus estimates for fiscal 2026 and 2027 have increased 6.69% and 11.74%, respectively.
The stronger upward revisions for Chevron coincide with its recent production growth, cost reductions and improved earnings performance. TotalEnergies has also recorded positive estimate revisions across all four periods, although the increases were smaller in three of the four periods.
Chevron vs. TotalEnergies: Which Stock Stands Out?Both energy majors have compelling LNG growth stories. Chevron offers rapidly growing production, Hess-related synergies and an expanding LNG portfolio. TotalEnergies brings a much larger established LNG business, a broader global portfolio and a substantially lower valuation.
The data also show stronger one-year share-price performance for TotalEnergies, while Chevron has delivered more pronounced upward earnings estimate revisions.
TotalEnergies carries a Zacks Rank #2 (Buy), while Chevron has a Zacks Rank #3 (Hold). Based on the combination of its lower valuation, established LNG platform, stronger recent share performance and Zacks Rank, TTE holds the edge in this face-off.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron do konce roku zahájí seismický průzkum v Jónském moři a jižně od Peloponésu a Kréty. Program má prověřit potenciál čtyř bloků o rozloze asi 47 000 km².
Key Takeaways Chevron plans seismic research in the Ionian Sea and areas south of the Peloponnese and Crete.CVX's four offshore blocks span about 47,000 square kilometers in the Eastern Mediterranean.The three-phase program covers seismic data, exploratory drilling and reservoir analysis. Chevron Corporation (CVX - Free Report) reportedly plans to begin seismic research in blocks off Greece by the end of this year, marking an important step toward assessing the region’s hydrocarbon potential. The energy major is expanding its offshore exploration footprint in Greece, strengthening its position in the Eastern Mediterranean.
Chevron’s country manager Beatrice Bienvenu, during a meeting with Greek energy minister Stavros Papastavrou in New York, indicated that seismic research in the Ionian Sea and areas south of the Peloponnese and Crete will begin by year-end.
Chevron Expands Its Offshore Footprint in GreeceChevron has been steadily building its presence in Greece. Earlier this year, the company acquired a 70% stake from Helleniq Energy in an offshore block southwest of the Ionian Sea. A Chevron-led consortium also secured exclusive lease agreements to explore for natural gas across three additional deep-sea blocks off the Peloponnese and Crete.
Chevron and Helleniq Energy's agreements cover four offshore blocks — South Crete 1, South Crete 2, South of Peloponnese and Block A2. Together, these areas span approximately 47,000 square kilometers, creating a sizable exploration position in the Eastern Mediterranean.
Seismic Work Opens the Door to Future ExplorationThe planned seismic research represents an initial step rather than an immediate move toward commercial production. Seismic exploration will help Chevron and its partner better understand the geological characteristics and potential hydrocarbon resources beneath these offshore areas before decisions on test drilling are made.
The joint venture has outlined a three-phase exploration program covering seismic data acquisition, exploratory drilling and reservoir analysis. This process is designed to determine whether commercially viable oil and natural gas resources exist within the offshore acreage.
Greece Eyes a Larger Role in Regional EnergyChevron's growing presence may also support Greece's ambitions in the Eastern Mediterranean energy market. Greece's location near Europe, the Middle East and North Africa gives the country strategic importance as it seeks to expand domestic hydrocarbon development and strengthen its position in regional energy markets.
The document notes that Greek energy minister Papastavrou views these developments as important for national energy security and domestic hydrocarbon production. The Chevron-Helleniq projects are also expected to support employment, technology transfers and broader industrial activity within Greece's energy sector.
CVX Builds on Its Eastern Mediterranean PresenceFor Chevron, Greece adds another component to an already established Eastern Mediterranean portfolio. The company has active natural gas fields in Israel as well as interests in Egypt and Cyprus, giving CVX an existing operational presence across the region.
The Eastern Mediterranean remains an important part of Chevron's future energy portfolio, while Greece's undeveloped resource potential provides another exploration avenue. The planned seismic campaign therefore extends CVX's regional footprint while laying the groundwork for determining whether the Greek offshore blocks can eventually support commercially viable development.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies, 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 better-ranked stocks like CrossAmerica Partners LP (CAPL - Free Report) , Marathon Petroleum Corporation (MPC - Free Report) and Magnolia Oil & Gas Corporation (MGY - 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.
CrossAmerica Partners engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. The Zacks Consensus Estimate for CAPL’s 2026 earnings indicates 30.4% year-over-year growth.
Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for MPC’s 2026 earnings indicates 452.8% year-over-year growth.
Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The Zacks Consensus Estimate for MGY’s 2026 earnings indicates 64.3% year-over-year growth.
Integrated oil and gas giant Chevron (CVX -0.62%) revealed plans to increase capital spending on exploration by more than 50% next year.
For investors, a strategy built around high-quality assets and backed by a company with 39 consecutive years of dividend increases is hard to overlook.
Thinking long term, as usualKevin McLachlan, Vice-President of Exploration at Chevron, told The Financial Times that this year's exploration budget has increased significantly as part of a shake-up of the exploration business, which has lately yielded disappointing results.
Image source: Getty Images.
The bigger concern management is trying to address is the strategic issue of reserve replacement. At the end of 2024, Chevron's proven reserves fell below 10 billion barrels of oil equivalent (BBOE), which increased marginally to 10.6 BBOE at the end of 2025, primarily driven by its acquisition of Hess.
Existing field declines can be problematic, and acquisitions and development of existing fields can only go so far. Investing in the exploration of frontier resources is the key to advancing the next generation of production and maintaining a healthier long-term production profile.
According to McLachlan, the company plans to drill around 20 exploration wells and another five to six appraisal wells in 2027, up from just 10 exploration wells in 2024.
Upping the frontier gameStill, Chevron's sharp increase in exploration spending comes as little surprise. Exploration is an asymmetric activity. A failed well will destroy relatively little capital compared with the potential value of a major discovery. Chevron is deliberately increasing its exposure to as many frontier basins as possible.
The Financial Times reports that Chevron plans to spend more than $1.5 billion this year in exploration alone, and has secured exploration rights off the coasts of Brazil, Egypt, Namibia, Suriname, and others, doubling its exploration acreage since 2024.
McLachlan additionally emphasized the use of artificial intelligence (AI) and better seismic data to improve the identification of prospect locations.
Will this affect dividend growth?Chevron paid out $12.8 billion, or $6.84 per share, in dividends in 2025 on $16.9 billion in free cash flow, which is cash from operations less capital expenditures. For 2026, management expects overall organic capital spend of $18 billion to $19 billion, which could, over the longer term, climb to $21 billion per year.
At its annual investor day last November, management outlined its strategy for sustaining cash flow growth over the next five years. It expects to maintain a capex-plus-dividend breakeven below $50 Brent prices through 2030.
This should arguably be the best strategy for sustaining dividend growth. And with Brent prices hovering near $100, cash flow should further improve, making it the best time for the company to increase frontier exploration activity.
At its current payout level, Chevron is well-positioned to sustain and grow its dividend.
CVX Cash from Operations (TTM) data by YCharts.
Higher oil prices encourage exploration Chevron's current cash-flow profile is encouraging (see the chart above). Moreover, funding capital spending, maintaining its dividend, and continuing to return capital to shareholders are inherently easier in today's strong commodity price environment.
However, I’d argue that the increased exploration budget is where long-term investors will find value.
It gives management greater flexibility to invest for the long term, finding and developing future reserves, without putting as much pressure on near-term shareholder distributions. The downside is that none of these projects may become commercial, or even if they do, they may end up at the higher end of the cost curve.
So ultimately, that is an investment in the longevity of the company's production base and, by extension, its future cash-generating capacity and share price.
For dividend-focused investors, this is important because Chevron's ability to sustain and grow its payout ultimately depends on the cash generated across the commodity cycle.
The benefit may not be immediateThe real test of oil stocks is what happens when oil prices turn. While exploration is inherently uncertain, investors will hope that Chevron discovers a major resource at the lower end of the cost curve. So while today's spending may take years to translate into cash flow, the integrated oil company still stands to profit throughout the oil price cycle.
So the key question isn't whether Chevron is spending more. I'd be watching whether this spending generates attractive long-term returns while preserving its balance-sheet strength and dividend coverage.
Dovoz venezuelské ropy do USA vyskočil na 782 tisíc barelů denně, nejvýše od srpna 2017. Chevron chce ve Venezuele investovat více než 7 miliard USD a těžbu tam více než zdvojnásobit.
Venezuelan crude is flooding back into American refineries at levels not seen in nearly a decade, and one oil major has quietly positioned itself to capture more of that surge than any other company on the market.
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U.S. imports of Venezuelan crude jumped by 183,000 barrels per day in the week ended Sept. 11, reaching 782,000 barrels per day, according to the U.S. Energy Information Administration. That was the highest weekly total since August 2017.
The bigger trend is even more striking. Over the past six months, Venezuelan imports have increased by 550,000 barrels per day, or 237%, while the three-month average reached 626,000 barrels per day.
That is a long way from Venezuela’s historical peak, when U.S. imports reached roughly 1.5 million barrels per day in 1997 and routinely exceeded 1 million barrels per day between 1995 and 2007. Still, the direction is unmistakable: American refiners are consuming more Venezuelan oil again.
And that creates an unusually direct opportunity for Chevron (NYSE:CVX | CVX Price Prediction).
Chevron Has a Front-Row Seat Chevron isn’t merely watching Venezuela’s oil industry recover. It is helping drive the recovery.
On Sept. 2, Chevron announced updated agreements covering its Venezuelan joint ventures, including additional acreage in the Orinoco Belt. The company plans to invest more than $7 billion over the next five years and expects production from its Venezuelan ventures to more than double to approximately 600,000 barrels per day. Chevron says total production costs are below $20 per barrel.
That puts Chevron’s Venezuela opportunity alongside its broader financial strength. The oil and gas giant reported total revenue of $70 billion in the second quarter, up 56% from the year-ago figure, generating earnings of $12 billion, or $6.06 per share on an adjusted basis, more than quadruple the $1.45 per share it earned last year. Adjusted free cash flow was $15.4 billion while reducing debt by a record $8.4 billion.
Chevron’s board also declared a quarterly dividend of $1.78 per share, equal to a roughly 3.4% annualized yield at the Sept. 18 closing price.
A 237% growth explosion in just six months—see why Chevron is betting $7 billion on the high-stakes return of Venezuelan heavy crude. The Refining Angle Matters, Too Venezuelan crude is generally heavier than the crude produced in many U.S. shale fields, making refinery configuration important. Chevron has another advantage here: its U.S. refineries processed a record 1.07 million barrels per day of crude in the second quarter, operating at more than 97% utilization.
That creates a potentially valuable combination. Chevron can participate in Venezuela’s upstream production while its downstream business benefits from access to crude suited to sophisticated U.S. refining infrastructure.
U.S. markets have historically been the most attractive for Venezuela’s crude due to the short distance across the Gulf of America and the Gulf Coast refineries there are designed to process it.
Granted, Venezuela remains a geopolitical and regulatory risk. The U.S. Treasury continues to regulate activities involving Venezuelan entities, but the Sept. 11 Federal Register lists Chevron among companies authorized to conduct specified Venezuela-related activities.
Still, that means investors shouldn’t treat 600,000 barrels a day as guaranteed future production.
Key Takeaway In short, Venezuela’s return to the U.S. oil supply chain is becoming a measurable trend, with imports reaching 782,000 barrels per day and a three-month average of 626,000 barrels per day. President Trump has said he will use Venezuelan oil to help refill the U.S.’s Strategic Petroleum Reserve that are near depletion levels.
Chevron has the clearest direct connection to that growth. Its Venezuelan production could more than double, while its U.S. refining system is already operating at record throughput. With $15.4 billion of quarterly adjusted free cash flow, a 3.4% dividend yield, and a plan to invest $7 billion in Venezuela, Chevron gives investors a way to participate in Venezuela’s oil revival without making a pure bet on Venezuela itself.
That makes Chevron stock worth putting on the watch list for investors seeking energy exposure with a growing Venezuelan catalyst.
Contact [email protected] for any questions or corrections.
Chevron zajistil asi pětinu cílového LNG portfolia prostřednictvím smluv s třetími stranami, místo aby spoléhal jen na vlastní produkci. Akcie ve středu klesly zhruba o 2,6 %.
Purchased Gulf Coast supply adds flexibility while Chevron weighs capital-intensive expansion across several regions. Summary
Chevron is mixing owned production with contracted gas to control expansion risk.
Chevron CVX, the integrated energy producer, built roughly one-fifth of its targeted LNG supply portfolio through third-party contracts instead of relying entirely on its own production, Reuters reported. The shares fell approximately 2.6% to $212.115 Wednesday, based on the latest price shown in the chart. The valuation picture is demanding: Chevron trades 30.73% above its GF Value™ estimate of $162.26, leaving the stock with a sizable premium to GuruFocus' fair-value benchmark.
Chevron is targeting around 20 million metric tons of annual LNG supply capacity, with roughly 16 million tons coming from company-linked projects and another four million secured from U.S. Gulf Coast producers. Management is also hunting for additional growth across Argentina, the eastern Mediterranean, Australia and Africa. India remains on the radar as a potentially important demand market, although Chevron has not announced a supply agreement there.
That contract-heavy approach gives Chevron a faster way to broaden its LNG footprint without owning every molecule of production. It also fits a wider push toward dependable, long-duration energy demand, including the company's 20-year agreement to supply 2.67 gigawatts of dedicated power to a Microsoft data center in Texas. The opportunity is big, but the valuation raises the bar: with Chevron already trading well above its GF Value estimate, investors will need disciplined contract economics, dependable execution and strong returns on capital—not simply more headline capacity.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Chevron oznámil nejsilnější downstream čtvrtletí za několik let a uzavřel 20letou smlouvu o dodávkách elektřiny s Microsoftem, kterou vedení označuje za model nezávislý na ceně ropy.
Chevron just posted its strongest downstream quarter in years while quietly signing a power deal with Microsoft that management calls a repeatable model independent of oil prices. The question is whether Wall Street has already priced in the transformation or…
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Chevron (NYSE:CVX | CVX Price Prediction) has spent the past year quietly rewriting its story. The Microsoft (NASDAQ:MSFT) power deal, the Hess integration, and downstream margins doing the heavy lifting have all changed the pitch.
Our 24/7 Wall St. price target for Chevron is $227.15, roughly 4.31% above where CVX trades today at $217.77. That points to a hold, with high model confidence at 90%. The stock is near fair value after a strong run.
24/7 Wall St. Price Target Summary Metric Value Current Price $217.77 24/7 Wall St. Price Target $227.15 Upside 4.31% Recommendation HOLD Confidence Level 90% Why Chevron Is Trading Near 52-Week Highs CVX is up 3.8% in the past week, 9.83% in a month, and 46.85% year to date, brushing the 52-week high of $217.65.
Q2 2026 was the catalyst: adjusted EPS of $6.06 on revenue of $67.20 billion, up 51.4% year over year, with downstream earnings jumping to $4.87 billion from $737 million.
Management hit $3 billion of structural cost cuts six months early and captured $1.5 billion of Hess synergies, 50% above the initial target. Debt fell $8.41 billion in the quarter alone.
Why Bulls See a Breakout Ahead The bull case now hinges less on Brent than on power. Chevron’s 20-year take-or-pay power purchase agreement with Microsoft for 2.67 GW of behind-the-meter capacity in West Texas, branded Project Kilby, is designed to deliver “mid-teens returns and long duration contracted cash flows that are independent of commodity price cycles.”
Management called it a “repeatable model,” with advanced discussions on more sites underway. Layer in record U.S. upstream production of 2,077 MBOED, 97% refinery utilization, Guyana’s Hammerhead FID, and Iraq’s West Qurna II negotiations, and the setup gets richer. A bull scenario supports $238 within a year.
What Could Go Wrong Chevron carries commodity risk regardless of the AI narrative. WTI has swung from the $70s in early July to over $97 in September, and a slip back would compress upstream cash flow fast. Higher DD&A from Hess and elevated interest expense are also lingering drags.
Bears would counter that the CEO has stated Chevron’s 2030 objectives already assume flat, lower commodity prices, and the $3 billion cost program gives the company a wider margin buffer than in past cycles. Still, the model’s bear path lands around $197.48.
How Chevron Compares to ExxonMobil and ConocoPhillips ExxonMobil (NYSE:XOM) is the closest integrated peer. XOM trades at a trailing P/E of 24 versus Chevron’s 20, with a market cap of $696 billion. Exxon delivered Q1 2026 revenue of $85.14 billion and adjusted EPS of $1.16. Chevron’s cheaper multiple and larger downstream swing this year make our target look reasonable rather than aggressive.
ConocoPhillips (NYSE:COP) is the pure U.S.-focused upstream counterpoint. COP posted Q2 2026 revenue of $19.16 billion, adjusted EPS of $3.24, and doubled buybacks to $2 billion. Without downstream or a Microsoft-scale power deal, COP is more price-sensitive. That contrast supports Chevron’s premium and reinforces our hold.
Chevron Price Prediction 2026-2030 The 24/7 Wall St. price target of $227.15 and hold rating reflect a stock that has already priced in the good news, backed by 90% confidence. The tipping factor is Project Kilby: if a second data-center power contract lands, the multiple rerates.
The setup would strengthen on any additional Microsoft-style deal or a pullback to the mid-$200s. It would weaken if Brent slides under $70 and refining cracks roll over into winter.
Year 24/7 Wall St. Price Target 2026 $220.01 2027 $226.85 2028 $236.56 2029 $247.02 2030 $259.25 These projections assume Chevron holds its 2-3% production growth objective and delivers Project Kilby on schedule. Meaningful upside or downside will come from Brent trajectory, additional AI power contracts (we profiled seven companies feeding the AI data-center buildout, from power to cooling, in a free report you can grab here), and Iraq’s West Qurna II terms.
Contact [email protected] for any questions or corrections.
Chevron vzrostl asi o 2,1 % na 216,58 USD, když Brent vystoupal na 109,20 USD za barel. Firma zároveň oznámila zisk 12,1 miliardy USD za 2. čtvrtletí a 20letou dohodu o dodávkách elektřiny s Microsoftem.
Chevron CVX , the integrated energy producer, jumped approximately 2.1% to $216.58 Tuesday afternoon as Brent crude climbed to $109.20 per barrel. The move came as Saudi export disruptions, Libyan outages and fresh attacks on energy infrastructure tightened the market's focus on supply risk. The valuation picture is already stretched, however: Chevron's $216.58 share price sits 33.55% above its GuruFocus GF Value™ of $162.17, suggesting investors are paying a sizable premium for the current energy backdrop.
Chevron's second-quarter results delivered $12.1 billion of earnings while worldwide production climbed 20%. The company also cut debt by $8.4 billion, reached record U.S. production and signed a 20-year power agreement with Microsoft tied to a West Texas data-center project. That combination gives Chevron two powerful earnings levers: traditional oil-and-gas cash flow today and potential exposure to the AI infrastructure buildout over a much longer runway.
That distinction matters. Higher crude prices can boost Chevron's cash generation quickly, helping fund dividends, buybacks and future projects, while the Microsoft agreement opens a completely different path into surging data-center electricity demand. But the market is already pricing in plenty of optimism. With the shares trading more than one-third above GF Value™, investors are effectively betting that strong commodity economics and new power opportunities can justify a valuation well above GuruFocus' estimate of intrinsic value.
Chevron uvedl, že strategické ropné rezervy jsou podle něj téměř vyčerpané, a na tom staví expanzi ve Venezuele za 7 miliard USD. Projekt má být financován z hotovosti z existujících společných podniků.
Chevron's CEO is convinced the world's emergency oil buffers are gone for good, and he is putting $7 billion behind that conviction in one of the riskiest oil patches on earth.
Chevron (NYSE:CVX | CVX Price Prediction) CEO Mike Wirth said that the emergency oil buffers that softened the market after the Iran conflict began have been largely depleted. He argues those cushions cannot be repeated indefinitely, which leaves crude vulnerable to any fresh disruption.
He is backing that view with real money. Chevron has proposed a Venezuela expansion aimed at more than doubling output there by early next decade, and the project will be funded entirely with cash generated by its existing Venezuelan joint ventures.
That self-funding structure matters because it limits capital diverted from the Permian, Guyana, or the Gulf. You get an option on Venezuelan barrels without shrinking the buyback pool.
Wirth’s Shortage Call Wirth’s supply case rests on more than one lever. He noted that strategic reserve releases and eased restrictions on some sanctioned oil inventories helped balance the market, but those actions cannot be repeated.
Prices agree for now. Brent settled at $109.51 on September 9, 2026, well above the $61.35 close on December 31, 2025.
On the earnings call, Wirth added that “demand destruction is not obvious to me at any significant scale”. Thin buffers plus resilient demand is the setup he is underwriting.
Depleted cushions are a real condition, but not a guarantee of sustained triple-digit crude. OPEC+ discipline and Chinese consumption remain the swing variables.
Numbers Behind the Bet The Q2 results show why Chevron can lean forward. Adjusted EPS was $6.06, revenue $67.20 billion, up 51.43% year over year, and free cash flow $18.10 billion.
Worldwide production hit a record 4,070 MBOED, up 20% year over year, with U.S. upstream at a record 2,077 MBOED. Wirth credited “disciplined investment and strong execution”.
Hess integration is running ahead of schedule, with $1.5 billion in annual run-rate synergies inside one year and the $3 billion structural cost target hit six months early.
Venezuela’s Real Risk Wirth said “we’re in negotiations right now to try to improve the fiscal terms and enable more investment in Venezuela”, and confirmed debt recovery should be complete by early 2027.
Moreover, output across the three joint ventures has climbed from 40,000 to 250,000 barrels per day. That trajectory is the empirical basis for the expansion pitch.
The risks here are principally political. Sanctions policy has shifted before, and Caracas contract enforcement is not the Permian, so you should treat elevated prices and future output as scenarios rather than guarantees.
Because the plan draws on Venezuelan cash already in hand, a policy reversal caps the loss instead of opening a new one.
Is CVX Stock a Buy? CVX trades at $214.04, up 44.35% year to date, on a forward earnings multiple of 16x with a 3.28% dividend yield and a 39th consecutive annual dividend increase.
Analysts carry an average target of $221.21, with 6 strong buy and 14 buy ratings against 4 holds and 1 sell. Given the cash engine, Hess synergies, and self-funded Venezuela optionality, the setup screens favorably on fundamentals.
Venezuela offers adequate compensation for exceptional risk, while the Permian, Guyana, and refining remain Chevron’s most lucrative barrels. The core thesis remains the Permian, Guyana, and refining, with Caracas a low-cost call option on Wirth being right about spare capacity. I’d tag CVX stock a Buy due to oil prices remaining high. Even if the situation in the Middle East calms down, oil will stay high for longer due to all the infrastructure damage and all the oil reserve stockpiles that would have to be replenished.
Contact [email protected] for any questions or corrections.
Chevron rozšiřuje globální LNG portfolio a hledá růst v Argentině, ve východním Středomoří, Austrálii, Africe i Indii. Cílí na diverzifikovanější a spolehlivější dodávky plynu.
Key Takeaways Chevron plans to expand its LNG portfolio as buyers seek more diverse and reliable gas supplies.Argentina and the Mediterranean are key growth areas, alongside potential projects in Australia and Africa.Chevron is pursuing LNG opportunities in India and Asia while weighing capital and regulatory conditions. Chevron Corporation (CVX - Free Report) is looking to expand its global liquefied natural gas (LNG) portfolio as energy-security concerns drive buyers to seek more diversified and reliable supplies. The company sees growth opportunities across Argentina, the East Mediterranean, Australia and Africa, while also pursuing potential LNG deals with emerging markets such as India.
Chevron Seeks to Diversify Its LNG PortfolioRecent disruptions linked to the Russia-Ukraine war and the Iran conflict have highlighted the risks of depending heavily on a limited number of gas suppliers. Chevron believes these events are reinforcing the need for diversity in both supply sources and contracting structures.
Chevron expects to have about 20 million metric tons per annum of LNG supply capacity. This includes 16 million tons of net gas production from its projects and another 4 million tons contracted from the U.S. Gulf Coast. The contracted volumes began flowing in February and are expected to ramp up over the coming years.
Argentina & East Mediterranean Offer Growth PotentialArgentina has emerged as an important area of interest for Chevron, supported by the country's developing crude oil and natural gas resources. The company also views the East Mediterranean as an attractive region for future gas opportunities.
Chevron expanded its presence in the region recently after receiving approval to become operator and lead gas explorer in an offshore block off Greece. The company is evaluating opportunities in Australia and Africa, although potential projects will need to offer suitable capital, fiscal and regulatory conditions.
At the same time, Chevron will have to prioritize these opportunities alongside major existing investments. The company and its partners plan to invest more than $7 billion in Venezuela to more than double oil production by 2031. Chevron said projects will be assessed and ranked within its broader project queue.
Asia Remains a Key LNG MarketChevron's existing Australian operations provide an important foundation for its LNG portfolio. The company operates the Gorgon and Wheatstone projects, with a substantial portion of Australian LNG supply sold to Japan.
Japan remains a key market for Chevron, while Singapore provides additional opportunities. In 2024, Chevron signed an agreement with Sembcorp Industries to supply up to 0.6 million tons per annum of LNG from 2028. China and South Korea also remain attractive destinations for the company's LNG volumes.
India Could Become a Future OpportunityChevron is also interested in securing an LNG deal with India, although pricing remains an important consideration. The company sees India as a market that is still evolving and expects opportunities to develop over time.
The comments come as LNG buyers rethink traditional supply arrangements. State-backed importers are increasingly showing willingness to contract with portfolio suppliers rather than relying exclusively on government-to-government agreements. For Chevron, this could create additional opportunities to expand its customer base and strengthen its global LNG position.
Diversification Strengthens Chevron's LNG StrategyChevron's expansion strategy reflects a broader shift in global LNG markets toward supply diversification and greater energy security. By pursuing resources in Argentina and the Mediterranean while maintaining a strong presence in Australia and targeting markets across Asia, the company is positioning its LNG portfolio for changing global demand patterns.
The success of this strategy will depend on Chevron's ability to balance new growth projects with capital requirements and regulatory conditions while securing commercially attractive long-term supply agreements.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies, 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 better-ranked stocks like Forum Energy Technologies, Inc. (FET - Free Report) , PBF Energy Inc. (PBF - Free Report) and HF Sinclair Corporation (DINO - 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.
Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Zacks Consensus Estimate for FET’s 2026 earnings indicates 536.5% year-over-year growth.
PBF Energy is a leading independent crude oil refiner that produces unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products. The Zacks Consensus Estimate for PBF’s 2026 earnings indicates 481.1% year-over-year growth.
HF Sinclair is an independent energy company producing and marketing gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. The Zacks Consensus Estimate for DINO’s 2026 earnings indicates 140.5% year-over-year growth.
Chevron těží z napjatějšího trhu s ropou, protože vyčerpané globální zásoby mohou v příštích měsících tlačit ceny výš. Ve 2. čtvrtletí zvýšil produkci na rekordních 4,07 mil. boe/d a vytvořil 15,4 mld. USD upraveného volného cash flow.
Key Takeaways Chevron is gaining a stronger commodity backdrop as depleted crude buffers could lift oil prices.CVX produced a record 4.07M boe/d and generated $15.4B in adjusted free cash flow in Q2.CVX's 2026 and 2027 EPS estimates rose 18.18% and 14.62% over the past 60 days. Chevron Corporation (CVX - Free Report) is gaining a fresh fundamental tailwind as oil-market conditions tighten and management warns that previously available supply buffers have largely been exhausted. Speaking at an energy conference at the University of Texas at Austin on Sept. 11, Chevron’s CEO Mike Wirth said that depleted global crude oil buffers could push oil prices higher in the coming months. Brent crude ended the week at $104.61 per barrel, while WTI settled at $100.05, highlighting the stronger commodity backdrop.
That environment is important for CVX because it is entering the potential oil-price upswing with record production, strong cash generation and improved balance-sheet flexibility.
Strong Production Could Amplify Higher Oil PricesChevron's second-quarter results already demonstrated the benefit of stronger commodity prices and higher volumes. Worldwide production increased 20% year over year to 4.07 million barrels of oil equivalent per day, while upstream earnings surged to $8.2 billion from $2.7 billion a year earlier.
CVX also generated $15.4 billion of adjusted free cash flow during the quarter and reduced total debt by a record $8.4 billion. This gives CVX greater financial flexibility to invest in production while maintaining shareholder returns.
One-Year Share-Price Performance — CVX, XOM & BP
Image Source: Zacks Investment Research
The one-year share-price comparison shows that CVX has underperformed ExxonMobil Holdings Corporation (XOM - Free Report) but slightly outperformed BP (BP - Free Report) . CVX’s shares have risen 36.1% over the past 12 months, compared with 47.8% for XOM and 34.8% for BP. This indicates that CVX has delivered better share-price performance than BP but has trailed XOM over the period. The relative underperformance against XOM could leave room for catch-up if higher oil prices translate into stronger earnings expectations.
Rising Earnings Estimates Add to the Bull CaseA particularly positive signal for CVX is the improvement in the consensus earnings expectations.
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate trend for CVX's EPS has increased 18.18% for 2026 and 14.62% for 2027. The current consensus estimate stands at $16.51 for 2026 and $14.66 per share for 2027. This upward revision trend suggests analysts are becoming more constructive about CVX's earnings outlook.
CVX, XOM and BP P/E Ratio
Image Source: Zacks Investment Research
Valuation presents a more mixed picture for CVX. The chart shows CVX trading at a P/E ratio of 14.07, broadly in line with XOM at 14.04. BP trades at a considerably lower P/E of 8.36. Thus, Chevron's valuation is essentially in line with ExxonMobil Holdings but carries a substantial premium to BP. The premium valuation could be justified by CVX's improving production profile, strong cash generation and upward earnings-estimate revisions, but it also leaves less room for valuation-driven upside compared with BP.
ExxonMobil Holdings remains a formidable competitor, with record production and a large global upstream portfolio. BP, meanwhile, offers investors exposure to the integrated oil and gas business but trades at a significantly lower earnings multiple. This makes the valuation comparison less favorable for CVX against BP, even though the former's recent earnings-estimate revisions provide a positive fundamental differentiator.
Is CVX Set for More Upside?The setup for CVX is increasingly constructive. Higher oil prices, record production, strong free cash flow, lower debt and rising earnings estimates provide several potential catalysts. CVX's Hess integration is also strengthening its production base, while management has already achieved $1.5 billion of annual run-rate synergies ahead of schedule. The primary risk is that today's elevated oil prices are heavily influenced by geopolitical disruptions. A normalization of supply could quickly reverse some of the commodity-price gains.
Overall, CVX appears positioned for further upside, but its Zacks Rank #3 (Hold) suggests investors should balance the attractive fundamentals against commodity-price and geopolitical risks. CVX's one-year share-price performance has been stronger than BP's but weaker than XOM's, while its upward earnings-estimate revisions provide a positive fundamental catalyst. However, CVX's valuation is broadly in line with XOM and significantly above BP's, limiting the margin of safety. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron uvedl, že ropné rezervy, které dříve tlumily růst cen během války mezi Izraelem a Íránem, jsou vyčerpané a ceny mohou v příštích měsících dál růst.
Chevron (CVX.N) CEO Mike Wirth said on Friday that oil buffers that limited crude price increases earlier in the Iran war have been depleted, and the conflict could lift prices further over the next few months.
Since the war began in late February, countries have released some crude stockpiles to the market, and the U.S. also lifted restrictions on oil stored on ships floating at sea from countries under sanctions. Those buffers have now been "played out," Wirth said while speaking at a University of Texas at Austin energy conference.
"It's harder to envision a scenario where prices soften and quickly," he said. "I think the risks remain to the upside over the next few months."
The average price of diesel in the U.S. hit $6 per gallon for the first time on Thursday, as the Iran war, combined with Ukrainian attacks on Russian refineries, squeezed supply. Brent crude futures remain on track for a weekly gain of 8%.
CHEVRON SEEING FEWER IMPACTS ON KAZAKHSTAN OPERATIONS
Wirth said the administration of U.S. President Donald Trump had spoken with Ukraine about its attacks on oil infrastructure in Russia's Black Sea, and that the company since then has seen fewer impacts on its operations in the region.
Chevron operates the massive Tengiz oilfield in Kazakhstan, and also holds a stake in the Caspian Pipeline Consortium, which operates an export pipeline from Tengiz to the Black Sea.
Wirth added the company will fund its planned $7 billion investment to expand in Venezuela entirely with cash generated by its three existing joint ventures in the country. Last week, Chevron signed new contract terms with the Venezuelan government to expand to two new oil areas and more than double output to about 600,000 barrels per day by 2031.
"We'll live entirely within the means of those ventures' ability to generate cash, not bring in cash from the outside," Wirth said.
Income-oriented investors often buy oil stocks to earn steady dividends. However, many of those stocks are also tightly tethered to volatile oil prices. When oil prices surge, these companies generate plenty of cash to cover their dividends. But when oil prices pull back, the less diversified companies with weaker balance sheets will likely reduce those payments.
That said, there's still one resilient oil stock I'd be comfortable buying in September, even though it's historically the weakest month for the stock market. That stock is Chevron (CVX -0.49%), one of the world's largest integrated energy companies.
Image source: Getty Images.
Why is Chevron more resilient than other oil companies? Chevron owns upstream, midstream, and downstream businesses. Upstream companies, which extract oil, typically benefit most from rising oil prices because their revenues increase faster than their expenses. Midstream companies, which build the infrastructure to transport those resources, can grow as long as gas and oil keep flowing through their pipelines.
Downstream companies that operate refineries and chemical production plants generally fare better when crude oil prices are lower, since their input costs are pegged to the spread between crude oil costs and retail fuel prices. Chevron's diversification across all three industries helps it better withstand market downturns than smaller companies that focus on a single market.
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Chevron still generates most of its profits from its upstream business, so it's benefited from the conflict-driven spike in oil prices over the past six months. However, it only needs the price of Brent crude oil -- which recently rose above $100 per barrel -- to remain above its breakeven price of about $50 per barrel to comfortably cover its capex and dividends.
Chevron has a presence in 180 countries, but it gets most of its oil and natural gas from the U.S., Kazakhstan, and Australia. It's also less dependent on the Middle East than most of its industry peers, including ExxonMobil (XOM +0.61%) and BP (BP +0.88%).
At the end of the second quarter, Chevron had $8.53 billion in cash and equivalents with a low net debt ratio of 13.1%. That fortress balance sheet should shield it from the next market crash.
Chevron expects to increase its oil and gas production by 2%-3% annually through 2030. That growth should be supported by its Tengiz Field in Kazakhstan, its main Permian Basin field in the U.S., its deepwater projects across the Gulf of Mexico, new natural gas projects in Australia, and its growth in Guyana -- one of the fastest-growing oil regions in the world.
It also aims to reduce its structural costs by up to $4 billion by the end of 2026, increase its synergies from Hess (which it acquired last July) to $1.5 billion, and buy back up to $20 billion in shares every year -- as long as the price of Brent crude oil stays at about $60-$80 per barrel.
Why is Chevron a rock-solid dividend investment? Chevron currently pays a forward yield of 3.4%. It's raised its dividend annually for 39 consecutive years, even as the U.S. endured four recessions. If it maintains that streak for 50 years in a row, it will become a Dividend King. Over the past 12 months, Chevron spent just 51% of its free cash flow (FCF) on its dividends, leaving it plenty of room for future hikes.
Over the past 20 years, Chevron delivered a total return of 618% with reinvested dividends. It didn't outperform the S&P 500's (^GSPC -0.58%) total return of 755%, but it easily beat ExxonMobil and BP's total returns of 391% and 100%, respectively.
From 2025 to 2028, analysts expect Chevron's revenue and EPS to grow at CAGRs of 4% and 24%, respectively. Those are robust growth rates for a stock that trades at 16 times next year's earnings. By comparison, the S&P 500 is trading at 20 times forward earnings. So if you're looking for a cheap oil dividend stock to buy this month, Chevron checks all the right boxes.
Chevron vzrostl asi o 1,5 % poté, co Brent poprvé za více než šest týdnů překonal hranici 100 USD za barel. Firma zároveň uzavřela 20letou dohodu s Microsoftem na dodávku 2,67 GW energie pro datová centra s AI.
Crude drives today's rally; Microsoft's power agreement offers a second, longer-duration demand channel. Summary
Oil supplies Chevron’s immediate upside while AI infrastructure builds an additional route to cash flow.
Chevron CVX, the integrated energy giant, climbed approximately 1.5% to $213 Wednesday as Brent crude broke above $100 per barrel for the first time in more than six weeks. Energy stood alone as the S&P 500's only advancing sector in early trading, with escalating Middle East tensions putting supply risk—and oil profits—back in focus.
The timing matters. Chevron's second-quarter results showed what the business can deliver when Brent prices remain elevated. With Brent averaging roughly $104 per barrel, the company produced $18.1 billion in free cash flow, lifted production 20% to 4.07 million barrels of oil equivalent per day and cut debt by $8.4 billion.
The picture shows Chevron trading 31.8% above its GF Value™ of $161.61, suggesting investors already expect powerful cash generation. Oil remains the near-term earnings engine, but Chevron's 20-year agreement to supply Microsoft with 2.67 gigawatts of behind-the-meter power opens a second lane tied to booming AI data-center demand. That combination looks potent, although today's valuation leaves less room for weaker oil prices or power-project costs that run ahead of plan.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Chevron ve 2. čtvrtletí zvýšil produkci o 20 % na rekordních 4,07 mil. BOE/den a dosáhl 15,4 mld. USD upraveného volného peněžního toku. TTM ROIC ale klesl na 7,8 %, pod medián odvětví 8,6 %.
Key Takeaways Chevron's production rose 20% to a record 4.07M BOE/d in Q2, while structural savings hit $3B.CVX's TTM ROIC is 7.8%, below the 8.6% industry median despite strong cash-flow conversion.Chevron posted $15.4B adjusted FCF and a record $8.4B debt paydown as earnings remained uneven. Oil and gas supermajor Chevron (CVX - Free Report) is benefiting from strong production and Hess buyout synergies. Structural cost reductions have also improved the economics of its massive energy portfolio.
But for investors, the big question is whether Chevron is turning that operating strength into consistently attractive returns. Looking at return on invested capital (ROIC), cash conversion and earnings linearity, we can say that the company is generating plenty of cash, but its returns and earnings consistency leave room for improvement.
The Operating Engine Is RealIn the last reported quarter, Chevron’s worldwide production jumped 20% year over year to a record 4.07 million barrels of oil equivalent per day, powered by the Hess acquisition, Permian growth, and the Gulf of America. On the cost side, Chevron hit $3 billion in annual run-rate structural savings and $1.5 billion in Hess synergies— both six months ahead of schedule. Management is also guiding toward spending 25% less capital per barrel of oil equivalent in 2026 than in 2025.
Put together, Chevron is pumping more oil, spending less to do it, and cutting the capital it needs per barrel going forward.
But Capital Efficiency Hasn’t Kept PaceBased on our proprietary calculation, Chevron's trailing-12-month ROIC stands at 7.8%, above its own 10-year median of 6.3%, indicating that capital efficiency remains better than its longer-term historical norm.
But the more recent trend is less encouraging. CVX’s ROIC has slipped from a 5-year median of 9.4% to a 3-year median of 8.3% and now stands at 7.8%. At the same time, its current ROIC is below the 8.6% industry median. Close peers like ExxonMobil (XOM - Free Report) and Shell (SHEL - Free Report) also generate higher ROIC, at 9.2% and 10.2%, respectively.
The production growth and cost discipline are happening, but they haven't yet translated into a sustained improvement in capital efficiency. Part of the disconnect may be the industry's commodity sensitivity. Higher production and lower unit costs can improve the underlying economics, but weaker oil and gas prices can still compress profits and ROIC faster than the capital base adjusts.
If Hess synergies, structural cost cuts, and a lighter capital footprint in U.S. shale keep compounding, ROIC can increase from here. A downturn in commodity prices or slippage on execution could just as easily pull it the other way. The next few quarters of ROIC data will matter more than any single production headline.
The Cash Flow Story Holds UpIf ROIC shows how productively Chevron uses its capital, cash flow conversion shows whether those earnings are turning into real money. And here, the picture is much cleaner.
Chevron’s TTM cash-flow conversion runs at 220.1%, with free-cash-flow conversion at 131.2%, per our proprietary calculations. Both are a bit below their historical medians, but still comfortably strong. In the last reported quarter, Chevron generated $19.7 billion of operating cash flow excluding working capital, $15.4 billion of adjusted free cash flow, and a record $8.4 billion debt paydown.
Chevron is effective at converting profits into cash to reduce debt, fund investments and return capital to shareholders. That helps offset the ROIC concern. Even if capital efficiency is middling now, the balance sheet is getting materially stronger.
Earnings Are Still UnevenChevron's earnings also lack consistency. Per our proprietary model, its 10-year EPS linearity is only 30.9%, below the 34.8% industry median and far below the 100% ideal baseline. Meanwhile, 10-year EPS CAGR (on a TTM basis) of 9.5% trails the industry median of 13.2%.
That inconsistency largely comes down to commodity exposure. Chevron's earnings move with oil, gas and refining prices rather than following a steady operational trajectory. Mixed downstream demand and softer energy prices can therefore add further volatility to earnings.
Peers show a similar spread. ExxonMobil's EPS linearity sits at 37.5%, while Shell's at 29.1%, suggesting earnings volatility is a sector-wide feature.
Tying It TogetherChevron's higher production, cost cuts and Hess synergies are improving the business, and the benefits are already showing up in strong cash generation. But the improvement in operations has not yet translated into a similar improvement in ROIC as Chevron's earnings remain tied to the highly cyclical energy market.
The Zacks Rundown for ChevronShares of Chevron have gained 38% year to date, outperforming the industry, ExxonMobil and Shell.
YTD Price Performance Comparison Image Source: Zacks Investment Research
From a valuation perspective— in terms of forward price-to-earnings ratio— Chevron is trading at a premium compared with the industry average. The stock is also trading above its five-year mean of 11.81.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVX’s 2026 earnings is pegged at $16.51 per share, indicating 126% year-over-year growth. EPS estimates have been revised upward in the last 60 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron (CVX.N) will more than double the number of oil rigs it operates in Venezuela as part of its five-year plan to increase production in the country, Chief Financial Officer Eimear Bonner said at a Barclays conference on Tuesday.
Last week, the U.S. oil major said its joint venture partnerships in Venezuela would invest more than $7 billion to more than double oil output to 600,000 barrels per day by 2031.
The company has long maintained its presence despite years of political upheaval, and the administration of U.S. President Donald Trump has been urging oil producers to invest in Venezuela following the removal of President Nicolas Maduro by U.S. forces.
Once the joint ventures achieve 600,000 bpd, Chevron anticipates production will reach a plateau level between 600,000 to 700,000 bpd, Bonner said.
"The large resource base gives us the opportunity to extend that plateau for five to 10 years, and that's just the initial recovery from the reservoirs," she said. "There's a lot more upside there."
Chevron also received the right to international arbitration as part of its new contract terms that were signed last week, Bonner added.
The ability to resolve potential disputes under international arbitration courts has been a key requirement cited by other oil producers including ExxonMobil and ConocoPhillips, which exited Venezuela in 2007 when their assets were nationalized and say they are still owed money.
Chevron uzavřel dohodu o výrazném rozšíření aktivit ve Venezuele a plánuje během pěti let více než zdvojnásobit těžbu na zhruba 600 000 barelů denně. Firma chce investovat přes 7 miliard USD.
Chevron (CVX -1.29%) just signed a landmark deal to significantly expand its operations in Venezuela. The agreement, which positions the oil giant to double its output over the next five years, is a testament to its patience. "You have to hang in there until all the conditions come together: the technology, the economics, the markets, the politics," stated CEO Mike Wirth in a recent interview with Bloomberg. It stayed long after rivals ExxonMobil (XOM -1.69%) and ConocoPhillips (COP -1.08%) left, putting it in a position to capitalize on this major opportunity to help revitalize Venezuela's oil industry.
Here's a look at how Chevron's patience has proven to be a significant competitive advantage in Venezuela.
Image source: Getty Images.
Staying when things got toughExxonMobil and ConocoPhillips both left Venezuela in 2007 after the country nationalized their assets. Both have been seeking restitution, with ConocoPhillips winning an arbitration award of $12 billion that it has been trying to recover for years. The oil companies have been considering a return this year, as they each sent technical teams to evaluate potential investment opportunities. While ExxonMobil CEO Darren Woods called Venezuela "uninvestable" this past January, President Trump recently said that Exxon would be going back into Venezuela.
However, both companies are far behind Chevron, which has maintained operations in the country for over 100 years. That's part of the company's patient strategy in the country. CEO Mike Wirth told Bloomberg: "You have to have some patience and look at this out over time and not become discouraged. Not pick up and leave when things are difficult." By hanging on during the tough times, which included dealing with hyperinflation, power outages, and unstable civil conditions, Chevron was able to pounce when the opportunity came around to participate in the revival of Venezuela's oil industry.
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Building on its legacyChevron has already been expanding its operations in Venezuela. In April, it consolidated its heavy-oil position in the country through an asset swap with Venezuela's national oil company, Petroleos de Venezuela, S. A. (PDVSA). It received an additional 13.21% working interest in Petroindependencia, increasing its stake in that joint venture (JV) to 49%. Additionally, its Petropiar JV (30% interest) was granted rights to develop the adjacent Ayacucho 8 area in the Orinoco Oil Belt. In exchange, Chevron gave up its interest in two gas licenses and in another non-operated joint venture. This trade enhances Chevron's ability to increase production by 50% by the end of 2028, from its recent rate of 280,000 barrels per day.
Now, Chevron is further building on this legacy position with additional enhancements to its JVs. Its new deal with Venezuela will provide it with more acreage in the Orinoco Belt. Petroindependencia received the rights to develop the adjacent Carabobo-1 and Carabobo-2-South-A areas. Additionally, the deal includes enhanced fiscal, commercial, and legal terms that will support durable, competitive long-term investments in the country. Improved financial terms are something ExxonMobil has been seeking before it would agree to reenter the country.
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This increased position and improved terms support Chevron's new plan to invest more than $7 billion over the next five years. That would enable the company to more than double its production to around 600,000 barrels per day. Chevron estimates that its costs will be less than $20 a barrel, positioning it to drive strong earnings growth over the next five years from this investment.
However, while Wirth told Bloomberg that it has "good, high-quality resource positions" in Venezuela, "They're also sometimes not the easiest resource to produce." That's a risk investors should keep an eye on as the oil company ramps up its investment rate in the country. There's also the potential for renewed political risks, both in Venezuela and from future elections in the U.S.
Chevron's patience could pay massive dividendsChevron's decision to remain in Venezuela during the tough times is paying off. Its existing joint ventures in the country are receiving additional resources, which, together with improved terms, will enable the company to significantly increase production over the next five years. Given its low-cost resources, it could generate meaningful cash flow growth. It now has a huge head start over Exxon and ConocoPhillips, both of which are still evaluating whether to reenter the country. That could benefit the oil stock in the long run, as its low-cost growth in Venezuela could give it the fuel to deliver higher total returns than its rivals over the next few years.
The global energy market has been upended by the geopolitical conflict in the Middle East, with reduced supply driving up oil and natural gas prices. However, companies like Chevron (CVX -1.29%), while benefiting from today's high energy prices, think in decades, not days, weeks, or months. In fact, volatility is the norm for the energy sector. Management's long-term approach is why Chevron is actively looking to invest in the conflict-torn Middle East. But what does this really mean for dividend investors?
Chevron has a great dividend track record There are many reasons to like Chevron as an investment. For example, it is large and geographically diverse, with exposure to the entire energy value chain. But one of the biggest is the company's consistency, which is highlighted by a 38-year streak of annual dividend increases. Add in a well-above market 3.5% yield, and the story gets even better for dividend lovers seeking to add some energy exposure to their portfolios.
Image source: Getty Images.
Chevron's willingness to look beyond the conflict that is raging today is part of the story, too. In fact, it is planning to invest in Iraq and hopes to help build a pipeline that will allow energy companies to avoid traversing the Strait of Hormuz. Both could help the company maintain its impressive dividend growth streak, but they aren't the real dividend growth story investors need to be watching.
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The real dividend growth story is Chevron's ability to think and act with a long-term mindset. The Iraq investment and pipeline are merely examples of decisions that allow the company to keep increasing its dividend. But what enables such decisions in the first place is the company's financial strength, as highlighted by its impressive balance sheet. At the end of the second quarter of 2026, its debt-to-equity ratio was 0.2x, second only to ExxonMobil (XOM -1.69%) in its peer group.
Watch Chevron's balance sheet if you own it for the dividend The key is that Chevron has the financial strength to make big, long-term investments at just about any time in the energy cycle. And, notably, when energy prices are low, it has the leeway to take on debt to fund its business and dividend. When energy prices recover, as they always have historically, it reduces leverage ahead of the next downturn. It is this approach that has built Chevron's 38-year dividend streak, and that will extend it, not any single investment. So, if you own Chevron for the dividend, make sure you keep a close eye on the energy giant's balance sheet.
Chevron zvýšil dividendu už 39. rok po sobě a nyní vyplácí 1,78 USD na akcii čtvrtletně. Firma tvrdí, že ji podpoří i nové zdroje peněžních toků z Hess a projektu s Microsoftem.
Chevron has raised its dividend 39 straight years, but the real test was never a bull market in crude. Find out what the 2020 stress test and two new revenue streams reveal about whether that streak survives the next oil…
Chevron (NYSE:CVX | CVX Price Prediction) shareholders are set to collect another $1.78 per share quarterly payment on September 10, 2026, extending a streak most oil majors envy. The check is the third at the current rate, which reflects a 4% raise announced at the start of 2026, marking the 39th consecutive annual increase. With shares at $212.21 and up 42.32% year to date, the current yield sits at roughly 3.08%.
For a commodity-linked payer, the check looks easy with Brent at $104. The real question is what happens when crude rolls over. That answer is where Chevron earns its scorecard.
Dividend Scorecard: A Grade, With an Asterisk Q2 2026 delivered adjusted EPS of $6.06 on revenue of $67.20 billion, up 51.43% year-over-year. Free cash flow hit $18.095 billion against a quarterly dividend outlay near $3.504 billion. Full-year 2025 produced $33.94 billion in operating cash flow versus $12.75 billion in dividend payout. Balance sheet: net debt to cash flow from operations of 0.6 times after more than $8 billion in debt reduction last quarter.
FY2025 EPS came in at $6.63 while the annualized forward dividend runs $7.12. On trailing earnings, that reads over 100%. On free cash flow, it clears comfortably. Grade: A minus. Elite streak, elite coverage in a good tape, but the ratio compresses fast when crude cracks.
2020 Stress Test You Should Actually Care About When WTI collapsed to $36.97 in November 2020, Chevron generated only $10.6 billion of operating cash flow for the full year and paid out $9.7 billion in dividends. Q2 2020 operating cash flow was just $80 million against a $2.394 billion dividend. Chevron leaned on the balance sheet, protected the payment, and kept the streak alive. That is the resilience the current management team is being paid to replicate.
What Actually Changes the Math This Cycle The Hess integration delivered $1.5 billion in synergies six months ahead of schedule, and management called Hess free cash flow “roughly double the incremental dividends”. Also, Project Kilby, a 20-year take-or-pay power purchase agreement with Microsoft covering 2.67 gigawatts, is designed to throw off “long duration contracted cash flows that are independent of commodity price cycles.”
Mike Wirth summarized the philosophy plainly: “We’ll always focus on value over growth.” For dividend investors, the read is straightforward. The payment is safer than the ratio suggests, but only because Chevron has, again and again, chosen the check over almost everything else. Streaks like this one are the whole reason we built a free Dividend Kings screen ranking the longest-running raisers by valuation today.
Contact [email protected] for any questions or corrections.
Chris Lange
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
Washington udělil 100letý pronájem 17 venezuelských ropných polí údajně s 65 miliardami barelů soukromé firmě North American Blue Energy Partners. Chevron mezitím dosáhl nového 52týdenního maxima v rámci samostatné dohody.
Washington just handed a 100-year lease on tens of billions of barrels of Venezuelan oil to a private company nobody has heard of, while Chevron quietly hit a 52-week high on a completely separate deal. The two stories are getting…
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Venezuela reportedly lays claim to over 300 billion barrels of proven oil reserves, and the U.S. has set its sights on more of them.
Bloomberg News correspondent Tyler Kendall reported from Caracas this week that the headline prize of Washington’s Venezuela deal, a 100-year lease on 17 strategic oil fields holding a claimed 65 billion barrels, went to a private, non-supermajor bidder: North American Blue Energy Partners, a private company that cannot develop the fields alone and has yet to sign on producing partners. Meanwhile, Chevron (NYSE:CVX | CVX Price Prediction) stock just printed a fresh 52-week high at $212.79 on a separate, parallel Venezuela commitment. The two developments deserve to be evaluated separately.
What Washington Actually Signed Kendall’s on-the-ground reporting laid out the mechanics. The US government is taking an equity stake in the private joint venture and securing the right to purchase 20% of the offtake at cost, below market, through a swap mechanism designed to help refill the Strategic Petroleum Reserve. US Energy Secretary Chris Wright told Bloomberg that Venezuelan production, already up 25%, with exports up 50%, could double by the end of this decade from the current 1.1 million barrels per day; that output is still far below the 3.5 million peak from nearly three decades ago.
The catch is that North American Blue Energy Partners cannot develop the 17 fields alone. It must bring in other producers, including some fields previously operated by Russian, Chinese, or smaller local companies. Constitutional questions surrounding Venezuela’s competitive-bidding requirements remain unresolved, although the State Department says the deal was fully vetted.
Chevron’s Separate Lane Chevron is executing a distinct, older track, separate from the 65-billion-barrel lease. On the Q2 2026 call, CEO Mike Wirth described Venezuela as one of Chevron’s “special situations,” revealing, “We’re in negotiations right now to try to improve the fiscal terms and enable more investment in Venezuela.”
Management also said the company operates three Venezuelan joint ventures and has bolstered production from those agreements from 40,000 to 250,000 barrels per day, with full debt recovery expected by early 2027. Chevron’s Q1 2026 growth-initiative slate specifically listed an agreement to expand its heavy oil interest in Petroindependencia and develop the adjacent Ayacucho 8 area, alongside its long-running Petropiar operations with PDVSA.
Wirth’s framing in the Q4 2025 8-K: “We have been a part of Venezuela’s past for more than a century. We remain committed to its present.” That century of ground presence is what separates Chevron’s exposure from the newer, splashier lease.
Economist Parallel Investors Should Weigh Not everyone is convinced. Bloomberg Economics’ Chris Kennedy compared the deal structure to the 1953 US-backed coup in Iran, warning it could rekindle nationalist and anti-American sentiment and affirming the view that “this was all about oil.” Iran’s oil was nationalized in 1979. Kennedy called a democratic transition in Venezuela “a matter of when, not if,” raising real questions about the durability of a 100-year lease under a future elected government. Wirth has emphasized contractual protections including dispute resolution and tax and royalty regime guarantees, though those provisions face a hostile-precedent problem.
What The Market Is Actually Pricing CVX is up 39.5% year to date and 35% over one year, backed by tangible Q2 2026 numbers: adjusted EPS of 6.06, revenue of $67.2 billion up 51.43% year over year, and free cash flow of $18.1 billion. The stock trades at a forward P/E of 15 with a 3.4% dividend yield backed by 39 consecutive annual increases.
Hess synergies, Permian scale, Guyana’s Stabroek block, and a 20-year Microsoft (NASDAQ:MSFT) power purchase agreement for 2.67 GW in West Texas are doing the heavy lifting. Venezuela is optionality on top of the core thesis. Investors pricing the 52-week high should separate the 65-billion-barrel headline from what Chevron actually holds itself.
Contact [email protected] for any questions or corrections.
Shell a Chevron podepsaly nezávaznou dohodu o získání těžebních práv k bloku South Deepwater Tano Cape Three Points v Ghaně. Země zároveň přehodnocuje ropný a plynárenský sektor kvůli poklesu produkce.
Oil majors Shell (SHEL.L) and Chevron (CVX.N) have signed a non-binding agreement for the acquisition of production rights over Ghana's South Deepwater Tano Cape Three Points oil and gas block, Ghana's energy minister said.
The memorandum of understanding with Ghana National Petroleum Corporation, signed on Tuesday, comes as the West African country looks to encourage investment and help reverse declining output.
Shell said the agreement provides a framework for further negotiations of final license terms, and is subject to relevant approvals. Chevron confirmed the MoU, saying it is "constantly reviewing new global exploration opportunities".
The government is currently undertaking a comprehensive review of its legal and fiscal framework for upstream petroleum activities.
Addressing an energy conference in Accra this week, Energy Minister John Jinapor told delegates that among reforms proposed was reducing GNPC's initial interest in upstream projects — which does not carry financial obligations — to 10% from 15%.
Other steps include introducing a simpler tax regime and adopting differentiated royalty treatment based on water depths.
Ghana's crude oil production dropped from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the U.S. International Trade Administration.
However, major new investments in the Jubilee and TEN fields announced by Kosmos Energy (KOS.N) and partners including Tullow Oil (TLW.L) could fund the drilling of up to 20 new wells and bolster oil and gas output.
Chevron se dohodl s Venezuelou na nových podmínkách společných podniků a v příštích pěti letech plánuje investovat přes 7 miliard USD. Cílí na produkci kolem 600 000 barelů denně.
Chevron (CVX.N) said on Wednesday it had agreed with Venezuela on updated terms for its joint ventures in the country and plans to invest more than $7 billion over the next five years, targeting production of about 600,000 bpd.
The expansion is the culmination of several months of negotiation conducted separately from Washington's recent announcement of an unprecedented deal to take majority control of about 65 billion barrels of Venezuela's oil reserves.
The agreements provide enhanced fiscal, commercial and legal terms and include additional acreage in Venezuela's Orinoco Belt, Chevron said.
Following the U.S. capture and removal of Venezuelan President Nicolas Maduro from office in January, U.S. President Donald Trump has pushed a $100 billion reconstruction plan for Venezuela's energy sector, urging U.S. oil companies to invest in the country.
While Chevron's Venezuela operations have continued uninterrupted for at least 100 years, fellow oil producers ExxonMobil (XOM.N) and ConocoPhillips(COP.N) have remained on the sidelines.
Both companies exited the country in 2007 when their assets were nationalized under the previous government of President Hugo Chavez.
Chevron said the investment would support production growth at its three Venezuelan joint ventures, which have increased output by 15% so far this year. Total costs are expected to remain below $20 per barrel, the company said.
Chevron jedná o rozšíření ve Venezuele po dohodě, která má dát USA kontrolu nad více než 65 miliardami barelů tamních prokázaných zásob ropy. Firma už v zemi zajišťuje asi čtvrtinu produkce.
A few weeks ago, I wrote an article comparing the stocks of Chevron (CVX +2.12%) and ExxonMobil, saying I'd rather buy Chevron now. Given the events of the last week, I'm doubling down on that.
Last week, President Donald Trump announced a deal with Venezuela to give the U.S. control of more than 65 billion barrels of that country's proven oil reserves, which is about as much as the total proven reserves of the U.S. Venezuelan Interim President Delcy Rodriguez confirmed the 25-year agreement and said it would involve developing 17 oil fields and drawing more than $100 billion of investment.
Why is that good news for Chevron? The company appears to be intricately involved in the plan. News outlets are reporting that Chevron is now negotiating a major deal to expand operations in Venezuela.
Chevron has a big head start in Venezuela Chevron is the only American oil major that retained operations in Venezuela after the Bolivarian Revolution of 1999, which further nationalized the oil industry and forced many foreign oil companies out of the country. Today, Chevron's operations account for about one-fourth of Venezuelan oil production.
The opportunity for the company is massive. Venezuela has the largest proven crude oil reserves of any nation, about 303 billion barrels. That's even larger than Saudi Arabia's reserves. Basically, it sits on one-fifth of the world's oil.
And the company is on a bit of a roll. It reported net income of $12 billion for the second quarter, nearly 400% higher than the year-ago quarter. It beat Wall Street's earnings estimates by $0.50 a share, at $606.
Chevron is also a major refiner (as is ExxonMobil). Its refining profit soared from $737 million in the second quarter last year to $4.9 billion in the second quarter this year. Oil prices have been highly volatile this year, with increases driven by the Iran war boosting oil companies' revenues.
Image source: Getty Images.
While oil prices are expected to settle once the conflict ends, a global shortage of refining capacity will remain. That's a big positive for Chevron, which has the capacity to refine the heavy, sour crude that Venezuela produces. Chevron CEO Mike Wirth said in January that the company can process an additional 100,000 barrels per day of Venezuelan crude at its Pascagoula, Mississippi, refinery.
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206.14
Shares of Chevron are up 35% year to date. And the average price target among analysts for CVX shares is $218.29, about 6.4% higher than the current price. Of the 25 analysts who follow the company, 20 rate it either a "strong buy" or a "buy."
Chevron uzavřel s Microsoftem 20letou take-or-pay smlouvu na dodávku elektřiny pro AI datové centrum Microsoftu v Texasu. Projekt má začít dodávat energii do roku 2028 a zajistí Chevronu stabilní dlouhodobé příjmy.
Chevron (CVX +1.05%) posted stellar second-quarter results at the end of July, beating the street's estimates thanks to higher oil prices, increased production volumes, and strong margins.
However, even bigger news is that Chevron has entered into a 20-year power purchase agreement (PPA) to build a natural gas-powered facility to power Microsoft's (MSFT +1.68%) artificial intelligence (AI)-focused data center in Texas. The move comes as hyperscalers scramble to find energy for the ever-growing data center footprints.
For Chevron, it locks in long-term revenue, insulating it from volatile commodity prices. Here are details of its recent deal and what it means for Chevron investors.
Image source: The Motley Fool.
Breaking down Chevron's data center deal with Microsoft On June 22, Chevron inked a 20-year take-or-pay power purchase agreement with Microsoft to provide electricity for a Microsoft-operated data center. The agreement is part of Project Kilby, in which Chevron (through its subsidiary Energy Forge One), Engine No. 1, and Microsoft are working together to develop roughly 2.67 gigawatts (GW) of on-site power.
As part of this project, most of the power will come from GE Vernova's gas-powered turbines and related infrastructure. Additional capacity will come from Solar Turbines, a wholly owned subsidiary of Caterpillar. The modular approach enables the project to add capacity over time, and the power plant is expected to begin supplying power by 2028.
Chevron plays a key role as a co-investor and developer through Energy Forge One, as well as a fuel provider. Chevron will supply natural gas from its Permian Basin production field directly to the power plant, while Energy Forge One will manage the long-term operations, including maintenance and water management systems.
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The deal adds a diversified, stable revenue stream for Chevron The move into AI data centers provides Chevron with a targeted, high-margin commercial expansion. This behind-the-meter data center allows Chevron to use associated natural gas, a byproduct of crude oil drilling. Because of limited capacity, companies often have to burn off excess gas, but now Chevron has a place to redirect it as hyperscalers seek baseload energy from natural gas turbines.
The 20-year PPA take-or-pay contract provides Chevron with stable revenue over the life of the contract. The take-or-pay model ensures Chevron recovers its investment and eliminates upstream gas price volatility, while Microsoft secures scarce energy decades in advance.
The AI data center build-out continues to reveal the true bottleneck for hyperscalers: reliable power. This deal helps Chevron add another revenue stream benefiting from AI's secular growth and could pave the way for more deals in the future. It's the kind of news long-term investors should pay closer attention to.
Courtney Carlsen has positions in Chevron, GE Vernova, and Microsoft. The Motley Fool has positions in and recommends Caterpillar, Chevron, GE Vernova, and Microsoft. The Motley Fool has a disclosure policy.
Denali Advisors zvýšil ve 2. čtvrtletí podíl v Chevronu o 53,7 % na 29 292 akcií za 4,855 milionu USD. Chevron zároveň oznámil čtvrtletní zisk 6,06 USD na akcii, nad odhadem 5,55 USD.
Denali Advisors LLC lifted its position in Chevron Corporation (NYSE:CVX – Free Report) by 53.7% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 29,292 shares of the oil and gas company’s stock after purchasing an additional 10,236 shares during the quarter. Denali Advisors LLC’s holdings in Chevron were worth $4,855,000 at the end of the most recent reporting period.
A number of other hedge funds have also made changes to their positions in the company. Midwest Capital Advisors LLC bought a new stake in Chevron during the first quarter worth about $25,000. Core Wealth Advisors LLC acquired a new stake in shares of Chevron during the fourth quarter worth approximately $26,000. Phillip James Consulting Co. bought a new position in shares of Chevron in the fourth quarter valued at approximately $26,000. Basso Capital Management L.P. bought a new position in shares of Chevron in the fourth quarter valued at approximately $27,000. Finally, Karpus Management Inc. acquired a new position in shares of Chevron in the 4th quarter worth approximately $27,000. Institutional investors and hedge funds own 72.42% of the company’s stock.
Chevron Price Performance Shares of CVX stock opened at $202.04 on Friday. Chevron Corporation has a 1 year low of $146.49 and a 1 year high of $214.71. The company has a current ratio of 1.25, a quick ratio of 0.98 and a debt-to-equity ratio of 0.19. The firm’s 50 day moving average is $187.44 and its 200-day moving average is $188.85. The firm has a market capitalization of $399.18 billion, a price-to-earnings ratio of 19.37, a PEG ratio of 0.60 and a beta of 0.49.
Chevron (NYSE:CVX – Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, beating analysts’ consensus estimates of $5.55 by $0.51. Chevron had a net margin of 9.57% and a return on equity of 11.09%. The business had revenue of $67.20 billion during the quarter, compared to analyst estimates of $62.72 billion. During the same quarter last year, the business posted $1.77 earnings per share. Chevron’s revenue for the quarter was up 57.4% compared to the same quarter last year. Sell-side analysts forecast that Chevron Corporation will post 16.24 EPS for the current fiscal year. Chevron Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th will be given a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is presently 68.26%.
Insider Transactions at Chevron In other news, Director John B. Hess sold 100,000 shares of Chevron stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $194.26, for a total value of $19,426,000.00. Following the completion of the sale, the director directly owned 178,045 shares of the company’s stock, valued at approximately $34,587,021.70. This trade represents a 35.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael K. Wirth sold 317,100 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $200.46, for a total value of $63,565,866.00. Following the sale, the chief executive officer owned 26,308 shares of the company’s stock, valued at approximately $5,273,701.68. The trade was a 92.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,152,582 shares of company stock valued at $225,853,661 over the last quarter. Corporate insiders own 0.56% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities research analysts recently commented on CVX shares. Piper Sandler started coverage on Chevron in a research report on Thursday, July 23rd. They set an “overweight” rating and a $207.00 price target on the stock. Jefferies Financial Group reiterated a “buy” rating and issued a $216.00 price objective on shares of Chevron in a research report on Friday, July 10th. Royal Bank Of Canada reissued an “outperform” rating and issued a $220.00 price objective on shares of Chevron in a research note on Tuesday, May 5th. Zacks Research cut Chevron from a “strong-buy” rating to a “hold” rating in a report on Monday, June 8th. Finally, Weiss Ratings upgraded Chevron from a “hold (c)” rating to a “buy (b)” rating in a research note on Tuesday, August 11th. Twenty investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $207.48.
Check Out Our Latest Analysis on CVX
Chevron News Roundup Here are the key news stories impacting Chevron this week:
Positive Sentiment: Chevron is reportedly nearing a deal to migrate all of its Venezuelan joint ventures into a new energy framework, potentially allowing greater operational control and key oilfield expansions. The company already accounts for roughly one-quarter of Venezuela’s oil production. Reuters: Chevron to complete deal in Venezuela to migrate, expand oil projects Positive Sentiment: Reports indicate Chevron and oil-services company Halliburton are close to agreements to invest billions of dollars in Venezuelan fields. For Chevron, the opportunity could create a long-term production-growth platform and strengthen its position if Venezuela moves further away from OPEC restrictions. Wall Street Journal: Chevron, Other U.S. Firms Near Deal to Invest Billions in Venezuelan Oil Fields Neutral Sentiment: Analyst-oriented coverage is comparing Chevron’s performance with TotalEnergies, while other reports highlight Chevron’s investments in nuclear-fusion technology. Fusion could eventually diversify the company beyond hydrocarbons, but the projects remain experimental and are unlikely to materially affect near-term earnings. Yahoo Finance: What Does Chevron Want From Its Nuclear Fusion Push? Negative Sentiment: Venezuelan opposition groups have criticized reports that U.S. companies could receive a large stake in the country’s energy industry. Political resistance, sanctions or regulatory uncertainty could delay the agreement, raise investment costs or limit the expected benefits. The Guardian: Venezuelan opposition reacts to potential U.S. oil stake Negative Sentiment: Dividend-focused coverage notes that Chevron’s payout remains exposed to commodity-price cycles. Although the dividend is supported by the company’s scale and balance sheet, weaker oil prices or heavy Venezuelan investment requirements could pressure future cash-flow flexibility. 247WallSt: Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? About Chevron (Free Report)
Chevron Corporation (NYSE: CVX) is an American multinational energy company engaged in virtually all aspects of the oil and gas industry. As an integrated energy firm, Chevron’s core activities include upstream oil and natural gas exploration and production, midstream transportation and storage, downstream refining and marketing of fuels and lubricants, and petrochemical manufacturing through joint ventures and subsidiaries. The company markets fuels under brands such as Chevron, Texaco and Caltex and supplies a range of products and services to retail customers, industrial users and commercial fleets worldwide.
Chevron traces its corporate lineage to the early petroleum companies that eventually became Standard Oil of California and has evolved through significant mergers and restructurings, including the acquisitions of Gulf Oil and Texaco.
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Biondo Investment Advisors LLC acquired a new stake in shares of Chevron Corporation (NYSE:CVX – Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 73,440 shares of the oil and gas company’s stock, valued at approximately $12,173,000. Chevron accounts for about 1.5% of Biondo Investment Advisors LLC’s investment portfolio, making the stock its 23rd biggest holding.
A number of other hedge funds and other institutional investors have also added to or reduced their stakes in CVX. Blue Capital Inc. bought a new position in Chevron during the second quarter valued at about $786,000. OneAscent Wealth Management LLC bought a new stake in shares of Chevron during the 2nd quarter worth about $973,000. Global Retirement Partners LLC acquired a new position in shares of Chevron during the 2nd quarter valued at about $14,276,000. Indivisible Partners acquired a new position in shares of Chevron during the 4th quarter valued at about $1,923,000. Finally, Janney Montgomery Scott LLC raised its stake in shares of Chevron by 6.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 1,251,102 shares of the oil and gas company’s stock valued at $258,853,000 after acquiring an additional 79,439 shares in the last quarter. Institutional investors and hedge funds own 72.42% of the company’s stock.
Analysts Set New Price Targets Several equities research analysts recently weighed in on CVX shares. Dbs Bank upgraded Chevron to a “moderate buy” rating in a report on Thursday, August 6th. Sanford C. Bernstein lifted their price target on shares of Chevron from $204.00 to $209.00 and gave the company a “market perform” rating in a research report on Monday, August 3rd. Zacks Research cut shares of Chevron from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 8th. Piper Sandler initiated coverage on shares of Chevron in a research note on Thursday, July 23rd. They issued an “overweight” rating and a $207.00 target price on the stock. Finally, Morgan Stanley lifted their target price on shares of Chevron from $210.00 to $218.00 and gave the stock an “overweight” rating in a report on Wednesday. Twenty equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Chevron presently has an average rating of “Moderate Buy” and a consensus target price of $207.48.
View Our Latest Stock Report on Chevron Insider Transactions at Chevron In related news, Director John B. Hess sold 710,665 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $194.10, for a total value of $137,940,076.50. Following the completion of the transaction, the director directly owned 363,711 shares of the company’s stock, valued at $70,596,305.10. This trade represents a 66.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Andrew Benjamin Walz sold 16,800 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $201.06, for a total transaction of $3,377,808.00. Following the completion of the sale, the insider directly owned 14 shares in the company, valued at $2,814.84. This trade represents a 99.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,152,582 shares of company stock valued at $225,853,661 in the last ninety days. 0.56% of the stock is owned by company insiders.
Chevron Stock Down 0.0% CVX stock opened at $205.25 on Monday. Chevron Corporation has a twelve month low of $146.49 and a twelve month high of $214.71. The company has a market cap of $405.53 billion, a PE ratio of 19.68, a price-to-earnings-growth ratio of 0.61 and a beta of 0.49. The business’s 50-day simple moving average is $185.03 and its 200 day simple moving average is $188.17. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.19.
Chevron (NYSE:CVX – Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.55 by $0.51. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The firm had revenue of $67.20 billion during the quarter, compared to analysts’ expectations of $62.72 billion. During the same quarter in the prior year, the firm posted $1.77 EPS. The company’s revenue for the quarter was up 57.4% on a year-over-year basis. On average, research analysts anticipate that Chevron Corporation will post 16.17 earnings per share for the current year.
Chevron Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Wednesday, August 19th will be paid a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Wednesday, August 19th. Chevron’s dividend payout ratio is presently 68.26%.
Key Stories Impacting Chevron Here are the key news stories impacting Chevron this week:
Positive Sentiment: Brent crude recently approached $94–$95 per barrel amid renewed Middle East tensions and concerns about Strait of Hormuz disruptions. Sustained higher oil prices typically benefit Chevron’s upstream revenue, margins and cash flow. Chevron jumps as Brent crude approaches $94 Positive Sentiment: Chevron confirmed an oil and gas condensate discovery at the 105-4X well in offshore Angola. Its proximity to existing facilities could allow a lower-cost tie-back, creating a potential source of future production. Chevron Angola discovery analysis Positive Sentiment: Chevron’s $1.78 quarterly dividend, equal to $7.12 annually and an approximately 3.5% yield, reinforces its appeal to income investors. The company also recently exceeded quarterly earnings and revenue expectations. Chevron raises dividend Neutral Sentiment: Analysis comparing Chevron with Exxon Mobil highlights differing long-term strategies, including Chevron’s continued emphasis on oil and gas. The approach could benefit from strong commodity prices but leaves CVX more exposed to future oil-demand and price cycles. Chevron versus Exxon Mobil analysis Negative Sentiment: Iraq plans to more than double its oil output over the next six years. If achieved, the added supply could pressure global crude prices and reduce the earnings benefit Chevron receives from today’s elevated prices. Iraq oil output and Chevron Negative Sentiment: Two Chevron insiders sold shares recently: Andrew Benjamin Walz sold 16,800 shares, while R. Hewitt Pate sold 2,470 shares. Although such transactions may reflect personal financial planning, they can create a modest sentiment overhang. Chevron insider sale report Negative Sentiment: A separate analysis says concerns remain centered on Chevron, including issues surrounding its Hess Midstream exposure and broader execution risks. The report may temper enthusiasm after CVX’s recent advance. Hess Midstream: The Issue Remains With Chevron About Chevron (Free Report)
Chevron Corporation (NYSE: CVX) is an American multinational energy company engaged in virtually all aspects of the oil and gas industry. As an integrated energy firm, Chevron’s core activities include upstream oil and natural gas exploration and production, midstream transportation and storage, downstream refining and marketing of fuels and lubricants, and petrochemical manufacturing through joint ventures and subsidiaries. The company markets fuels under brands such as Chevron, Texaco and Caltex and supplies a range of products and services to retail customers, industrial users and commercial fleets worldwide.
Chevron traces its corporate lineage to the early petroleum companies that eventually became Standard Oil of California and has evolved through significant mergers and restructurings, including the acquisitions of Gulf Oil and Texaco.
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