News about Chevron

The article compares integrated oil majors Chevron (CVX) and ExxonMobil (XOM), whose stocks rose 45% and 58% respectively over the past 12 months as oil prices climbed. Chevron earns about 80% of its profit from upstream operations versus about 70% for ExxonMobil, which has a larger downstream and petrochemicals business. With Brent crude at $110 per barrel, well above breakeven prices of $50 for Chevron and $35 for ExxonMobil, the author argues Chevron's upstream focus suits oil spikes, while ExxonMobil's diversification helps when prices fall. Chevron offers a 3.2% forward yield versus 2.3%, and analysts expect its EPS to grow at a 26% CAGR from 2025 to 2028, compared with 20% for ExxonMobil. Both trade at 15 times next year's earnings, and the author prefers Chevron.

Chevron hit a record closing high of $222.04 on Oct. 14 and is trading about a dollar below that, up 45% in 2026. Brent crude is just under $106, 46% above its level before the war in the Persian Gulf, and Chevron is positioned to benefit from a Venezuela deal giving the U.S. control of more than 65 billion barrels of proven reserves, as it was the only American major to keep operating there after 1999. The company is also expanding in the Eastern Mediterranean, with seismic work planned off Greece. Second-quarter net income reached $12.1 billion, nearly 400% above a year earlier, beating estimates by $0.50 a share at $6.06. The author believes the stock is still a buy, with 20 of 25 covering analysts rating it Buy or Strong Buy ahead of the Oct. 30 Q3 report.