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Chevron Corp (CVX)
NYSE:CVX
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Chevron (CVX) AI Stock Analysis

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CVX

Chevron

(NYSE:CVX)

Rating:76Outperform
Price Target:
$176.00
▲(11.35% Upside)
Chevron's overall stock score of 76 reflects strong operational performance and strategic growth initiatives, particularly the successful merger with Hess. The company's robust financial health and positive technical indicators further support this score. However, valuation concerns and recent financial headwinds slightly temper the outlook.
Positive Factors
Cash Flow
With the Hess deal finally closed, Chevron announced raising its 2026 free cash flow inflection to $12.5bn, implying a Hess free cash flow and synergies of $2.5bn in 2026.
Earnings
Chevron reported solid earnings results with EPS and CFPS exceeding consensus expectations, supported by strong downstream and upstream performance.
Growth Strategy
The recent closing of the HES deal strengthens CVX's business by enhancing growth and portfolio duration.
Negative Factors
Earnings Decline
Upstream earnings are expected to fall by approximately $1.4 billion quarter over quarter, primarily due to lower commodity prices.
Growth Challenges
Long-term organic growth for CVX is still lower than peers, presenting a challenge in its growth strategy.
Operational Expenditure
A fire at a DJ basin well could result in a $0.1 billion operational expenditure headwind.

Chevron (CVX) vs. SPDR S&P 500 ETF (SPY)

Chevron Business Overview & Revenue Model

Company DescriptionChevron Corporation (CVX) is a global energy company headquartered in San Ramon, California. It operates in various sectors of the energy industry, including oil and gas exploration and production, refining, and marketing. Chevron is involved in the development of renewable energy sources and technologies, alongside its traditional operations. The company's core products and services encompass crude oil, natural gas, refined petroleum products, and petrochemicals, positioning it as one of the largest integrated energy companies worldwide.
How the Company Makes MoneyChevron generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's upstream segment focuses on finding and extracting oil and gas resources, which are then sold in global markets. The downstream segment encompasses refining operations, where crude oil is transformed into consumable products, including gasoline, diesel, and jet fuel, which are sold through retail and commercial channels. Additionally, Chevron's chemicals segment produces and sells petrochemicals, enhancing its revenue base. Significant partnerships, joint ventures, and strategic alliances with other industry players and governments also contribute to Chevron's financial performance, allowing the company to expand its operational capabilities and access new markets. Furthermore, fluctuations in commodity prices, efficient cost management, and investments in technology and renewable energy sources play crucial roles in driving the company's profitability.

Chevron Key Performance Indicators (KPIs)

Any
Any
Net Oil Production by Geography
Net Oil Production by Geography
Tracks oil output across various regions, indicating Chevron’s production capabilities, regional growth opportunities, and potential geopolitical risks.
Chart InsightsChevron's U.S. oil production has surged, driven by strategic moves like the Hess merger and Permian Basin expansion, resulting in a 60% increase over two years. This aligns with Chevron's record-setting production achievements and operational efficiencies. Despite international production remaining relatively stable, the U.S. growth underscores Chevron's focus on domestic expansion and high-margin opportunities. The earnings call highlights further growth prospects, with Chevron aiming for the upper end of its production guidance range, signaling strong future performance potential.
Data provided by:Main Street Data

Chevron Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
Chevron demonstrated strong operational performance and strategic growth through its merger with Hess and increased production in key areas. Despite some financial headwinds from foreign currency impacts and a decline in adjusted earnings, the company remains confident in its cash flow and shareholder return capabilities.
Q2-2025 Updates
Positive Updates
Record Production Achieved
Chevron reported a quarterly production record both in the U.S. and globally, with Permian Basin production averaging over 1 million barrels of oil equivalent per day.
Successful Hess Merger and Arbitration Win
Chevron closed its merger with Hess, adding significant assets to its portfolio and achieved a favorable arbitration outcome, further solidifying its market position.
Strong Cash Flow and Shareholder Returns
Chevron generated cash flow from operations of $8.3 billion and returned over $5 billion to shareholders for the 13th consecutive quarter.
Operational Excellence in Key Segments
The company reported its highest U.S. refinery crude throughput in over 20 years and achieved a 30% reduction in development and production unit costs in the Permian.
Enhanced Free Cash Flow Forecast
Chevron increased its 2026 additional free cash flow guidance to $12.5 billion, driven by synergy realization and production growth.
Negative Updates
Foreign Currency Impact
Foreign currency effects negatively impacted earnings by $348 million in the quarter.
Decline in Adjusted Earnings
Adjusted second quarter earnings were down $760 million compared to the last quarter, affected by lower realizations and higher depreciation, depletion, and amortization (DD&A).
Exploration Results Below Expectations
The company acknowledged that recent exploration results have not met expectations, prompting a change in program and approach.
Company Guidance
During Chevron's Second Quarter 2025 Earnings Conference Call, the company delivered comprehensive guidance on their operational and financial outlook. Chevron achieved a record production milestone in the Permian Basin, averaging over 1 million barrels of oil equivalent per day, and returned over $5 billion to shareholders for the 13th consecutive quarter. The merger with Hess has positioned Chevron as the largest leaseholder in the Gulf of America, with U.S. production nearly 60% higher than two years ago. The company expects to realize $1 billion in annual run-rate synergies by the end of the year, six months ahead of schedule, and anticipates the merger to be cash flow accretive in the fourth quarter. Chevron reported second quarter earnings of $2.5 billion, or $1.45 per share, with adjusted earnings at $3.1 billion, or $1.77 per share. Organic CapEx was $3.5 billion, and inorganic CapEx, primarily for lithium acreage acquisition, was approximately $200 million. Cash flow from operations, excluding working capital, was $8.3 billion, and adjusted free cash flow was $4.9 billion, marking a 15% quarter-on-quarter increase despite a 10% drop in crude prices. The company revised its 2026 additional free cash flow guidance to $12.5 billion, reflecting strong performance in key growth assets and cost reductions.

Chevron Financial Statement Overview

Summary
Chevron demonstrates solid financial health with strong equity and low leverage. Profitability metrics indicate moderate operational efficiency, while cash flow performance remains robust despite recent declines. The company is well-positioned within the integrated oil & gas industry, with potential for improved margins and cash flows as market conditions stabilize.
Income Statement
75
Positive
Chevron has shown stable revenue levels with a slight decrease in recent years. Gross profit margin for TTM (Trailing-Twelve-Months) is 14.5%, indicating consistent profitability in the oil & gas sector. Net profit margin stands at 7.3%, showing moderate profitability. However, the EBIT margin of 3.9% suggests significant operational costs impacting core profitability. Revenue growth has fluctuated, with a recent decline from the prior year.
Balance Sheet
78
Positive
The balance sheet reflects a strong equity position with an equity ratio of 58.3% for TTM, indicating financial stability. The debt-to-equity ratio is 0.20, showcasing a conservative leverage strategy. Return on equity is 9.4%, suggesting efficient use of equity capital. Overall, Chevron maintains a healthy balance sheet with low leverage risks.
Cash Flow
70
Positive
Operating cash flow to net income ratio is 1.71, indicating robust cash generation relative to profits. Free cash flow has declined, with a growth rate of -25.2% from the previous year, primarily due to fluctuating capital expenditures. Still, free cash flow to net income ratio is 0.82, reflecting effective cash flow management despite recent challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue189.25B193.41B196.91B235.72B155.61B94.47B
Gross Profit44.11B56.93B60.39B65.59B45.43B22.82B
EBITDA41.00B45.81B47.81B67.00B39.36B10.44B
Net Income13.73B17.66B21.37B35.47B15.63B-5.54B
Balance Sheet
Total Assets250.82B256.94B261.63B257.71B239.53B239.79B
Cash, Cash Equivalents and Short-Term Investments4.07B6.79B8.22B17.90B5.67B5.63B
Total Debt29.47B24.54B20.84B23.34B31.37B44.31B
Total Liabilities103.56B103.78B99.70B97.47B99.59B107.06B
Stockholders Equity146.42B152.32B160.96B159.28B139.07B131.69B
Cash Flow
Free Cash Flow16.10B15.04B19.78B37.63B21.09B1.68B
Operating Cash Flow32.13B31.49B35.61B49.60B29.19B10.58B
Investing Cash Flow-10.07B-8.94B-15.23B-12.11B-5.87B-6.96B
Financing Cash Flow-21.70B-23.47B-30.11B-24.98B-23.11B-3.74B

Chevron Technical Analysis

Technical Analysis Sentiment
Positive
Last Price158.06
Price Trends
50DMA
151.49
Positive
100DMA
144.20
Positive
200DMA
147.53
Positive
Market Momentum
MACD
2.53
Negative
RSI
57.98
Neutral
STOCH
84.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVX, the sentiment is Positive. The current price of 158.06 is above the 20-day moving average (MA) of 155.50, above the 50-day MA of 151.49, and above the 200-day MA of 147.53, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVX.

Chevron Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$488.95B16.2611.68%3.54%-3.79%-15.46%
78
Outperform
$138.73B11.0010.96%5.73%-10.73%-36.76%
76
Outperform
$331.33B20.898.97%4.28%-5.02%-23.13%
74
Outperform
$211.44B14.447.40%3.90%
73
Outperform
$75.99B5.8519.48%13.55%-13.68%-13.96%
65
Neutral
$15.47B7.313.20%5.32%4.22%-60.66%
65
Neutral
$89.08B149.280.95%5.58%-7.40%-90.89%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVX
Chevron
158.06
23.24
17.24%
BP
BP
34.46
3.99
13.09%
XOM
Exxon Mobil
111.91
2.69
2.46%
PBR
Petroleo Brasileiro SA- Petrobras
12.31
-0.83
-6.32%
SHEL
Shell
72.74
7.41
11.34%
TTE
TotalEnergies
61.70
-2.17
-3.40%

Chevron Corporate Events

Private Placements and Financing
Chevron Issues $5.5 Billion in Notes for Funding
Neutral
Aug 13, 2025

On August 13, 2025, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, issued a series of notes totaling $5.5 billion with varying maturity dates ranging from 2027 to 2035. This issuance, guaranteed by Chevron Corporation, aims to strengthen the company’s financial position by securing long-term funding through both fixed and floating rate notes, potentially impacting its debt structure and market standing.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Chevron Appoints John B. Hess to Board Post-Acquisition
Positive
Jul 29, 2025

On July 28, 2025, Chevron Corporation appointed John B. Hess to its board of directors, following its acquisition of Hess Corporation. Mr. Hess, who previously served as CEO of Hess Corporation, will also join the Public Policy and Sustainability Committee. Additionally, Chevron has entered into a memorandum of understanding with HFO Holdings LLC, owned by Mr. Hess, to transfer interests in Hess Toy Truck LLC and HG Aircraft LLC, along with intellectual property rights related to the ‘Hess’ name, to HFO. These strategic moves are part of Chevron’s integration efforts post-acquisition, aimed at streamlining operations and enhancing its market position.

M&A TransactionsBusiness Operations and Strategy
Chevron Completes Acquisition of Hess Corporation
Positive
Jul 18, 2025

On July 18, 2025, Chevron Corporation completed its acquisition of Hess Corporation, creating a premier integrated oil and gas company with a diversified global portfolio. The merger, which includes significant assets in Guyana and the U.S. Bakken, is expected to drive substantial free cash flow and production growth into the 2030s, achieving $1 billion in annual cost synergies by the end of 2025, and enhancing shareholder returns.

Shareholder Meetings
Chevron Shareholders Approve Officer Liability Amendments
Neutral
May 30, 2025

At the 2025 Annual Meeting of Stockholders held on May 28, Chevron‘s shareholders approved amendments to the company’s Restated Certificate of Incorporation to limit the monetary liability of certain officers, aligning their protections more closely with those of directors. Additionally, all board nominees were elected, and the appointment of PricewaterhouseCoopers LLP as the independent auditor was ratified. However, several stockholder proposals, including those related to human rights practices, renewable energy risks, and special meeting calls, were not approved.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025