Chevron Stock Soars Amid Strong Oil Prices and Low Production Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy CVX?
Source: NASDAQ.COM
- Strong Stock Performance: Chevron's stock has surged 21.6% year-to-date, currently hovering around $185 per share and nearing the $200 milestone, reflecting robust market performance amid rising oil prices and increased investor confidence in the energy sector.
- Enhanced Profitability: Chevron has reduced its production costs to $50 per barrel of Brent crude through technological advancements, ensuring operational sustainability and dividend support even in low-price environments, with free cash flow reaching $16.5 billion in 2025, showcasing its financial resilience.
- International Expansion Strategy: Chevron's production increased from 3.34 million barrels per day in 2024 to 3.72 million in 2025, driven by investments in offshore Guyana and onshore Venezuela, along with the acquisition of Hess, which are expected to further boost earnings and cash flow.
- Consistent Dividend Returns: With 38 consecutive years of dividend increases and a current yield of 3.8%, Chevron remains a solid choice for income investors despite its rising stock price, demonstrating the company's strong commitment to shareholder returns.
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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: 184.160
Low
158.00
Averages
176.95
High
206.00
Current: 184.160
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 Stock Approaches All-Time High Amid Energy Boom
- Strong Stock Performance: Chevron's stock has surged 21.6% year-to-date, currently hovering around $185, nearing the $200 milestone, reflecting a booming energy sector driven by rising oil prices and attracting investor interest.
- Enhanced Profitability: Chevron has reduced its break-even level to $50 per barrel of Brent crude through technological advancements, enabling it to sustain operations and long-term investments even in low oil price environments, showcasing its financial resilience.
- Robust Cash Flow: In 2025, Chevron generated $16.8 billion in free cash flow, impressively supporting $12.8 billion in dividends despite the lowest oil prices since 2020, demonstrating strong cash flow management capabilities.
- International Expansion Risks: Chevron's daily production increased from 3.34 million barrels in 2024 to 3.72 million in 2025, with plans for investments in Iraq and other international projects, which, while riskier, are expected to further drive earnings growth.
See More
Home Depot and Chevron: Steady Dividend Stocks
- Home Depot's Profitability: As the world's largest home improvement retailer, Home Depot (HD) experienced a slight dip in earnings in its latest quarter, yet maintains a robust EBITDA margin of 15.4% and a net profit margin of 8.7%, indicating strong profitability and the potential for continued dividend increases.
- Stable Dividend Policy: Home Depot pays a quarterly dividend of $2.30 per share, totaling $9.20 annually, with a current yield of 2.4%; although its payout ratio of 62% is slightly above historical averages, it still has ample room to continue paying and potentially increasing dividends.
- Chevron's Cash Flow Advantage: Chevron (CVX) boasts the highest cash flow from operations and production growth among its peers, with both metrics projected to achieve a compound annual growth rate (CAGR) of 10% from 2024 to 2026, providing strong support for its ongoing dividend payments.
- Sustainability of Dividend Growth: Despite a high payout ratio of 95%, Chevron is expected to maintain its 38-year streak of annual dividend increases, having raised its free cash flow guidance by $12.5 billion for 2026, showcasing its strong performance and growth potential in the oil and gas sector.
See More
Buffett Reduces Tech Exposure as CEO Transition Begins
- Tech Sell-Off: In Buffett's final quarter as CEO, Berkshire Hathaway continued to reduce its exposure to tech and banking stocks, notably selling off shares of Apple and Bank of America, which further decreased reliance on equities and boosted cash reserves.
- Energy Stock Increase: Berkshire purchased over 8 million additional shares of Chevron in Q4, increasing its total holdings by 6.6%, making Chevron the fifth-largest holding, accounting for 7.6% of its total public stock portfolio.
- Strong Energy Performance: Chevron's stock rose 18% over the past year, delivering approximately 22% total return adjusted for dividends, highlighting the energy sector's appeal as a defensive investment amid tech volatility.
- CEO Transition Impact: Buffett's departure marks the end of a legendary era, and while he remains as chairman, this transition may influence Berkshire's investment strategy, particularly regarding its allocation in tech stocks.
See More
Warren Buffett to Step Down as CEO of Berkshire Hathaway by End of 2025
- Leadership Transition: Warren Buffett will step down as CEO of Berkshire Hathaway by the end of 2025, passing the reins to Greg Abel while remaining as chairman, marking the end of a legendary era in corporate leadership.
- Significant Divestitures: In Q4 2022, Berkshire Hathaway significantly reduced its stakes in Amazon, Apple, and Bank of America by 77%, 4.3%, and 8.9% respectively, reflecting a strategic shift away from tech and banking sectors to bolster cash reserves.
- High-Yield Stock Acquisition: In Buffett's final quarter as CEO, Berkshire increased its holdings in Chevron by over 8 million shares, a 6.6% increase, making it the fifth-largest holding, indicating a strategic pivot towards the energy sector.
- Energy Stock Performance: Chevron's stock has risen 18% over the past year, delivering approximately 22% total returns, and with Berkshire's divestment from bank stocks, Chevron is poised to become the conglomerate's fourth-largest holding soon.
See More
Chevron Stock Soars Amid Strong Oil Prices and Low Production Costs
- Strong Stock Performance: Chevron's stock has surged 21.6% year-to-date, currently hovering around $185 per share and nearing the $200 milestone, reflecting robust market performance amid rising oil prices and increased investor confidence in the energy sector.
- Enhanced Profitability: Chevron has reduced its production costs to $50 per barrel of Brent crude through technological advancements, ensuring operational sustainability and dividend support even in low-price environments, with free cash flow reaching $16.5 billion in 2025, showcasing its financial resilience.
- International Expansion Strategy: Chevron's production increased from 3.34 million barrels per day in 2024 to 3.72 million in 2025, driven by investments in offshore Guyana and onshore Venezuela, along with the acquisition of Hess, which are expected to further boost earnings and cash flow.
- Consistent Dividend Returns: With 38 consecutive years of dividend increases and a current yield of 3.8%, Chevron remains a solid choice for income investors despite its rising stock price, demonstrating the company's strong commitment to shareholder returns.
See More
Berkshire Hathaway's Q4 Earnings Preview Post-Buffett
- Earnings Expectations: Analysts forecast Berkshire Hathaway's Q4 revenue at $92.91 billion, down from $94.92 billion year-over-year, although the company has consistently beaten revenue estimates over the past four quarters, indicating strong business resilience.
- Insurance Profit Growth: In the recently reported third quarter, operating earnings surged 34% year-over-year, primarily driven by gains in the insurance segment, and the market will be keen to see if this trend continues into Q4.
- New CEO's Debut: New CEO Greg Abel will release his first shareholder letter alongside the earnings report, with investors eager for insights on the management of over $300 billion in idle cash and potential acquisitions, as well as whether he might break tradition by signaling a dividend payment.
- Holdings Performance Analysis: At year-end, only American Express, Bank of America, and Alphabet outperformed the S&P 500's 11.4% gain among Berkshire's top ten holdings, reflecting the conglomerate's overall underperformance against the market, prompting investor interest in Abel's commentary on other key holdings.
See More
Chevron Stock Approaches All-Time High Amid Energy Boom
- Strong Stock Performance: Chevron's stock has surged 21.6% year-to-date, currently hovering around $185, nearing the $200 milestone, reflecting a booming energy sector driven by rising oil prices and attracting investor interest.
- Enhanced Profitability: Chevron has reduced its break-even level to $50 per barrel of Brent crude through technological advancements, enabling it to sustain operations and long-term investments even in low oil price environments, showcasing its financial resilience.
- Robust Cash Flow: In 2025, Chevron generated $16.8 billion in free cash flow, impressively supporting $12.8 billion in dividends despite the lowest oil prices since 2020, demonstrating strong cash flow management capabilities.
- International Expansion Risks: Chevron's daily production increased from 3.34 million barrels in 2024 to 3.72 million in 2025, with plans for investments in Iraq and other international projects, which, while riskier, are expected to further drive earnings growth.
See More
Home Depot and Chevron: Steady Dividend Stocks
- Home Depot's Profitability: As the world's largest home improvement retailer, Home Depot (HD) experienced a slight dip in earnings in its latest quarter, yet maintains a robust EBITDA margin of 15.4% and a net profit margin of 8.7%, indicating strong profitability and the potential for continued dividend increases.
- Stable Dividend Policy: Home Depot pays a quarterly dividend of $2.30 per share, totaling $9.20 annually, with a current yield of 2.4%; although its payout ratio of 62% is slightly above historical averages, it still has ample room to continue paying and potentially increasing dividends.
- Chevron's Cash Flow Advantage: Chevron (CVX) boasts the highest cash flow from operations and production growth among its peers, with both metrics projected to achieve a compound annual growth rate (CAGR) of 10% from 2024 to 2026, providing strong support for its ongoing dividend payments.
- Sustainability of Dividend Growth: Despite a high payout ratio of 95%, Chevron is expected to maintain its 38-year streak of annual dividend increases, having raised its free cash flow guidance by $12.5 billion for 2026, showcasing its strong performance and growth potential in the oil and gas sector.
See More
Buffett Reduces Tech Exposure as CEO Transition Begins
- Tech Sell-Off: In Buffett's final quarter as CEO, Berkshire Hathaway continued to reduce its exposure to tech and banking stocks, notably selling off shares of Apple and Bank of America, which further decreased reliance on equities and boosted cash reserves.
- Energy Stock Increase: Berkshire purchased over 8 million additional shares of Chevron in Q4, increasing its total holdings by 6.6%, making Chevron the fifth-largest holding, accounting for 7.6% of its total public stock portfolio.
- Strong Energy Performance: Chevron's stock rose 18% over the past year, delivering approximately 22% total return adjusted for dividends, highlighting the energy sector's appeal as a defensive investment amid tech volatility.
- CEO Transition Impact: Buffett's departure marks the end of a legendary era, and while he remains as chairman, this transition may influence Berkshire's investment strategy, particularly regarding its allocation in tech stocks.
See More
Warren Buffett to Step Down as CEO of Berkshire Hathaway by End of 2025
- Leadership Transition: Warren Buffett will step down as CEO of Berkshire Hathaway by the end of 2025, passing the reins to Greg Abel while remaining as chairman, marking the end of a legendary era in corporate leadership.
- Significant Divestitures: In Q4 2022, Berkshire Hathaway significantly reduced its stakes in Amazon, Apple, and Bank of America by 77%, 4.3%, and 8.9% respectively, reflecting a strategic shift away from tech and banking sectors to bolster cash reserves.
- High-Yield Stock Acquisition: In Buffett's final quarter as CEO, Berkshire increased its holdings in Chevron by over 8 million shares, a 6.6% increase, making it the fifth-largest holding, indicating a strategic pivot towards the energy sector.
- Energy Stock Performance: Chevron's stock has risen 18% over the past year, delivering approximately 22% total returns, and with Berkshire's divestment from bank stocks, Chevron is poised to become the conglomerate's fourth-largest holding soon.
See More
Chevron Stock Soars Amid Strong Oil Prices and Low Production Costs
- Strong Stock Performance: Chevron's stock has surged 21.6% year-to-date, currently hovering around $185 per share and nearing the $200 milestone, reflecting robust market performance amid rising oil prices and increased investor confidence in the energy sector.
- Enhanced Profitability: Chevron has reduced its production costs to $50 per barrel of Brent crude through technological advancements, ensuring operational sustainability and dividend support even in low-price environments, with free cash flow reaching $16.5 billion in 2025, showcasing its financial resilience.
- International Expansion Strategy: Chevron's production increased from 3.34 million barrels per day in 2024 to 3.72 million in 2025, driven by investments in offshore Guyana and onshore Venezuela, along with the acquisition of Hess, which are expected to further boost earnings and cash flow.
- Consistent Dividend Returns: With 38 consecutive years of dividend increases and a current yield of 3.8%, Chevron remains a solid choice for income investors despite its rising stock price, demonstrating the company's strong commitment to shareholder returns.
See More
Berkshire Hathaway's Q4 Earnings Preview Post-Buffett
- Earnings Expectations: Analysts forecast Berkshire Hathaway's Q4 revenue at $92.91 billion, down from $94.92 billion year-over-year, although the company has consistently beaten revenue estimates over the past four quarters, indicating strong business resilience.
- Insurance Profit Growth: In the recently reported third quarter, operating earnings surged 34% year-over-year, primarily driven by gains in the insurance segment, and the market will be keen to see if this trend continues into Q4.
- New CEO's Debut: New CEO Greg Abel will release his first shareholder letter alongside the earnings report, with investors eager for insights on the management of over $300 billion in idle cash and potential acquisitions, as well as whether he might break tradition by signaling a dividend payment.
- Holdings Performance Analysis: At year-end, only American Express, Bank of America, and Alphabet outperformed the S&P 500's 11.4% gain among Berkshire's top ten holdings, reflecting the conglomerate's overall underperformance against the market, prompting investor interest in Abel's commentary on other key holdings.
See More
