Buffett's Final Bold Investment in Chevron
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CVX?
Source: Fool
- Major Investment: In his final quarter, Buffett invested over $1 billion to acquire 8 million shares of Chevron (CVX), raising Berkshire Hathaway's total stake to $19.8 billion, demonstrating his ongoing confidence in the oil and gas sector.
- Market Performance: Despite Chevron's stock lagging the S&P 500 by over 10% in 2025, Buffett's average purchase price of about $132 per share reflects his commitment to value investing principles.
- Future Potential: The capture of Venezuelan President Maduro may open new long-term opportunities for Chevron, which is the only U.S. oil major actively drilling in the country, although the situation remains unpredictable.
- Substantial Returns: With global energy prices soaring, Chevron's stock has risen 37% in 2026, resulting in a 58% return on Berkshire's latest investment, marking a final masterstroke by Buffett that is likely to yield dividends in the years to come.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron Positioned to Profit from Rising Oil Prices
- Oil Price Surge: Brent crude oil prices have soared past $100 a barrel, reaching their highest level since 2022, with further increases expected, benefiting energy stocks like Chevron, which is well-positioned to capitalize on high oil prices.
- Cash Flow Growth: Chevron anticipates generating $10 billion in incremental free cash flow in 2023, assuming an average oil price of $70 per barrel, while the Hess merger will contribute an additional $2.5 billion, totaling $12.5 billion in cash flow that will significantly enhance the company's financial health.
- Increased Shareholder Returns: Last year, Chevron returned a record $27 billion to shareholders through dividends and stock buybacks, and it is expected to continue raising dividends this year while repurchasing shares within its $10 billion to $20 billion target range, further enhancing shareholder value.
- Market Advantage: Chevron's massive global scale and low-cost resources allow it to reap substantial benefits from rising energy prices, with every $1 change in oil prices impacting its annual earnings and cash flow by $600 million, demonstrating its strong resilience against future market fluctuations.
See More
Chevron's Acquisition of Hess Boosts Cash Flow Significantly
- Impact of Hess Acquisition: Chevron's completion of the Hess acquisition in 2025 is expected to add $2.5 billion annually to its cash flow, further solidifying its market position in a high oil price environment.
- Free Cash Flow Expectations: The company anticipates generating $10 billion in incremental free cash flow in 2026, assuming Brent oil averages $70 per barrel, which will significantly enhance its financial health.
- Earnings Sensitivity to Oil Prices: A $1 change in Brent oil prices will increase Chevron's annual earnings and cash flow by $600 million, while a $1 change in LNG prices will add $150 million, demonstrating its high sensitivity to energy price fluctuations.
- Shareholder Return Strategy: Chevron returned a record $27 billion to shareholders last year through dividends and stock buybacks, and it is expected to continue repurchasing shares within its $10 billion to $20 billion annual target range, further boosting shareholder confidence.
See More
Chevron and Exxon Outlook Positive Amid High Oil Prices
- Oil Prices and Profitability: Although crude oil prices retreated by 1%, they remain above $100 per barrel, providing Chevron and Exxon with superior operating leverage, which is expected to drive higher profit growth in 2025.
- Strategic Investments and Market Expansion: Chevron's acquisition of Hess Corporation grants it a 30% stake in the Stabroek Block offshore Guyana, further solidifying its strategic position in the global energy market, while expanding its operations in the Leviathan gas field in the Mediterranean enhances revenue diversity.
- Cash Flow and Shareholder Returns: Following its acquisition of Pioneer Natural Resources in 2024, Exxon has become the largest producer in the U.S. Permian Basin, returning over $37.2 billion to shareholders last year, including $17.2 billion in dividends and $20 billion in share repurchases, showcasing strong cash flow and asset coverage.
- Market Outlook and Investment Appeal: With both Chevron and Exxon's breakeven levels below $50 per barrel, the current oil prices significantly boost their cash flows, making these major oil stocks attractive to long-term investors despite ongoing tensions in the Middle East.
See More
Asia-Pacific Markets Rebound on U.S.-Iran War Hopes
- Market Rebound: Asia-Pacific markets rebounded following U.S. President Trump's statements suggesting a potential end to the Iran war, with South Korea's KOSPI surging nearly 5% in early trading, reflecting investor optimism about improving geopolitical conditions.
- Export Surge: South Korea's exports soared 48.3% year-on-year in March, significantly exceeding Reuters poll estimates of 44.9%, providing strong support for the market and indicating a recovery in global demand.
- Japanese Business Confidence: Business sentiment among large Japanese manufacturers rose from 15 to 17, surpassing economists' expectations of 16, indicating a growing optimism about the economic outlook and reaching the highest level since Q4 2021.
- Australian Market Gains: The S&P/ASX 200 index in Australia increased by 1.76%, driven by a rise in educational services stocks, suggesting that strong performance in this sector positively influenced overall market sentiment.
See More
Buffett's Final Bold Investment in Chevron
- Major Investment: In his final quarter, Buffett invested over $1 billion to acquire 8 million shares of Chevron (CVX), raising Berkshire Hathaway's total stake to $19.8 billion, demonstrating his ongoing confidence in the oil and gas sector.
- Market Performance: Despite Chevron's stock lagging the S&P 500 by over 10% in 2025, Buffett's average purchase price of about $132 per share reflects his commitment to value investing principles.
- Future Potential: The capture of Venezuelan President Maduro may open new long-term opportunities for Chevron, which is the only U.S. oil major actively drilling in the country, although the situation remains unpredictable.
- Substantial Returns: With global energy prices soaring, Chevron's stock has risen 37% in 2026, resulting in a 58% return on Berkshire's latest investment, marking a final masterstroke by Buffett that is likely to yield dividends in the years to come.
See More
Buffett Boosts Berkshire's Chevron Stake to Nearly $20 Billion
- Chevron Stake Increase: In his final quarter as CEO of Berkshire Hathaway, Buffett added over 8 million shares of Chevron, raising his total investment in the company to $19.8 billion, reflecting his ongoing confidence in the oil and gas sector.
- Timely Investment: Despite Chevron's stock lagging the S&P 500 by more than 10% in 2025, Buffett purchased shares at an average price of about $132, demonstrating his keen eye for value investment opportunities.
- Market Rebound Potential: With global energy prices skyrocketing due to the closure of the Strait of Hormuz, Chevron's stock has risen 37% year-to-date in 2026, allowing Berkshire to realize a 58% return on this investment in less than six months, further solidifying Buffett's investment strategy.
- Venezuelan Opportunities: Buffett's investment may also benefit from the changing situation in Venezuela, as Chevron is the only U.S. oil major actively drilling in the country, potentially positioning the company for long-term opportunities in the region.
See More
Chevron Positioned to Profit from Rising Oil Prices
- Oil Price Surge: Brent crude oil prices have soared past $100 a barrel, reaching their highest level since 2022, with further increases expected, benefiting energy stocks like Chevron, which is well-positioned to capitalize on high oil prices.
- Cash Flow Growth: Chevron anticipates generating $10 billion in incremental free cash flow in 2023, assuming an average oil price of $70 per barrel, while the Hess merger will contribute an additional $2.5 billion, totaling $12.5 billion in cash flow that will significantly enhance the company's financial health.
- Increased Shareholder Returns: Last year, Chevron returned a record $27 billion to shareholders through dividends and stock buybacks, and it is expected to continue raising dividends this year while repurchasing shares within its $10 billion to $20 billion target range, further enhancing shareholder value.
- Market Advantage: Chevron's massive global scale and low-cost resources allow it to reap substantial benefits from rising energy prices, with every $1 change in oil prices impacting its annual earnings and cash flow by $600 million, demonstrating its strong resilience against future market fluctuations.
See More
Chevron's Acquisition of Hess Boosts Cash Flow Significantly
- Impact of Hess Acquisition: Chevron's completion of the Hess acquisition in 2025 is expected to add $2.5 billion annually to its cash flow, further solidifying its market position in a high oil price environment.
- Free Cash Flow Expectations: The company anticipates generating $10 billion in incremental free cash flow in 2026, assuming Brent oil averages $70 per barrel, which will significantly enhance its financial health.
- Earnings Sensitivity to Oil Prices: A $1 change in Brent oil prices will increase Chevron's annual earnings and cash flow by $600 million, while a $1 change in LNG prices will add $150 million, demonstrating its high sensitivity to energy price fluctuations.
- Shareholder Return Strategy: Chevron returned a record $27 billion to shareholders last year through dividends and stock buybacks, and it is expected to continue repurchasing shares within its $10 billion to $20 billion annual target range, further boosting shareholder confidence.
See More
Chevron and Exxon Outlook Positive Amid High Oil Prices
- Oil Prices and Profitability: Although crude oil prices retreated by 1%, they remain above $100 per barrel, providing Chevron and Exxon with superior operating leverage, which is expected to drive higher profit growth in 2025.
- Strategic Investments and Market Expansion: Chevron's acquisition of Hess Corporation grants it a 30% stake in the Stabroek Block offshore Guyana, further solidifying its strategic position in the global energy market, while expanding its operations in the Leviathan gas field in the Mediterranean enhances revenue diversity.
- Cash Flow and Shareholder Returns: Following its acquisition of Pioneer Natural Resources in 2024, Exxon has become the largest producer in the U.S. Permian Basin, returning over $37.2 billion to shareholders last year, including $17.2 billion in dividends and $20 billion in share repurchases, showcasing strong cash flow and asset coverage.
- Market Outlook and Investment Appeal: With both Chevron and Exxon's breakeven levels below $50 per barrel, the current oil prices significantly boost their cash flows, making these major oil stocks attractive to long-term investors despite ongoing tensions in the Middle East.
See More
Asia-Pacific Markets Rebound on U.S.-Iran War Hopes
- Market Rebound: Asia-Pacific markets rebounded following U.S. President Trump's statements suggesting a potential end to the Iran war, with South Korea's KOSPI surging nearly 5% in early trading, reflecting investor optimism about improving geopolitical conditions.
- Export Surge: South Korea's exports soared 48.3% year-on-year in March, significantly exceeding Reuters poll estimates of 44.9%, providing strong support for the market and indicating a recovery in global demand.
- Japanese Business Confidence: Business sentiment among large Japanese manufacturers rose from 15 to 17, surpassing economists' expectations of 16, indicating a growing optimism about the economic outlook and reaching the highest level since Q4 2021.
- Australian Market Gains: The S&P/ASX 200 index in Australia increased by 1.76%, driven by a rise in educational services stocks, suggesting that strong performance in this sector positively influenced overall market sentiment.
See More
Buffett's Final Bold Investment in Chevron
- Major Investment: In his final quarter, Buffett invested over $1 billion to acquire 8 million shares of Chevron (CVX), raising Berkshire Hathaway's total stake to $19.8 billion, demonstrating his ongoing confidence in the oil and gas sector.
- Market Performance: Despite Chevron's stock lagging the S&P 500 by over 10% in 2025, Buffett's average purchase price of about $132 per share reflects his commitment to value investing principles.
- Future Potential: The capture of Venezuelan President Maduro may open new long-term opportunities for Chevron, which is the only U.S. oil major actively drilling in the country, although the situation remains unpredictable.
- Substantial Returns: With global energy prices soaring, Chevron's stock has risen 37% in 2026, resulting in a 58% return on Berkshire's latest investment, marking a final masterstroke by Buffett that is likely to yield dividends in the years to come.
See More
Buffett Boosts Berkshire's Chevron Stake to Nearly $20 Billion
- Chevron Stake Increase: In his final quarter as CEO of Berkshire Hathaway, Buffett added over 8 million shares of Chevron, raising his total investment in the company to $19.8 billion, reflecting his ongoing confidence in the oil and gas sector.
- Timely Investment: Despite Chevron's stock lagging the S&P 500 by more than 10% in 2025, Buffett purchased shares at an average price of about $132, demonstrating his keen eye for value investment opportunities.
- Market Rebound Potential: With global energy prices skyrocketing due to the closure of the Strait of Hormuz, Chevron's stock has risen 37% year-to-date in 2026, allowing Berkshire to realize a 58% return on this investment in less than six months, further solidifying Buffett's investment strategy.
- Venezuelan Opportunities: Buffett's investment may also benefit from the changing situation in Venezuela, as Chevron is the only U.S. oil major actively drilling in the country, potentially positioning the company for long-term opportunities in the region.
See More
