Chevron: The Top Long-Term Energy Stock to Hold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy CVX?
Source: Fool
- Sector Performance: The energy sector has emerged as the best-performing sector this year, with Chevron, as an oil and gas giant, showcasing strong market competitiveness through its operations across the entire value chain, including upstream, midstream, and downstream.
- Diverse Revenue Streams: Chevron's business encompasses exploration, production, transportation, and refining, ensuring that it can maintain profitability through multiple revenue channels during market fluctuations, thereby enhancing its long-term investment appeal.
- Stable Dividend Growth: With 39 consecutive years of dividend increases, Chevron demonstrates its ability to create shareholder value even amid economic cycles, further boosting investor confidence in its stock.
- Optimistic Market Outlook: Despite the cyclical nature of the energy industry, Chevron's vertically integrated business model allows it to effectively manage market downturn risks, making it a prudent choice for long-term stockholders.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 182.500
Low
158.00
Averages
176.95
High
206.00
Current: 182.500
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: The Top Long-Term Energy Stock to Hold
- Sector Performance: The energy sector has emerged as the best-performing sector this year, with Chevron, as an oil and gas giant, showcasing strong market competitiveness through its operations across the entire value chain, including upstream, midstream, and downstream.
- Diverse Revenue Streams: Chevron's business encompasses exploration, production, transportation, and refining, ensuring that it can maintain profitability through multiple revenue channels during market fluctuations, thereby enhancing its long-term investment appeal.
- Stable Dividend Growth: With 39 consecutive years of dividend increases, Chevron demonstrates its ability to create shareholder value even amid economic cycles, further boosting investor confidence in its stock.
- Optimistic Market Outlook: Despite the cyclical nature of the energy industry, Chevron's vertically integrated business model allows it to effectively manage market downturn risks, making it a prudent choice for long-term stockholders.
See More
Buffett's Investment Portfolio Revealed
- Portfolio Concentration: As of December 31, 2025, over 70.9% of Buffett's Berkshire Hathaway portfolio is concentrated in five stocks: Apple, American Express, Bank of America, Coca-Cola, and Chevron, highlighting a highly concentrated investment strategy and risk management approach.
- Apple Holdings: Apple is Berkshire's largest holding with a market value of $61.9 billion, representing 22.6% of the portfolio; despite selling over 75% of its Apple shares in recent years, it remains a core asset, reflecting Buffett's commitment to long-term investments.
- Historical Investment Returns: Buffett first bought Coca-Cola in 1988 and American Express in 1963, and these long-held stocks have significantly appreciated over decades, becoming key pillars of Berkshire's portfolio, showcasing his investment foresight and patience.
- Investment Strategy Advice: To emulate Buffett's success, The Motley Fool recommends that investors build a diversified portfolio of at least 25 stocks, hoping to identify some big winners that can dominate their portfolios and drive wealth growth.
See More
Middle East Conflict Causes Global Oil Shortage
- Global Oil Shortage: Shell CEO Wael Sawan reported a current oil shortage of nearly one billion barrels, primarily due to locked-in and unproduced crude, with the gap deepening daily, indicating a long recovery process ahead.
- Limited Consumption Impact: Despite reduced oil supplies, jet fuel consumption in the airline industry has only declined by about 5%, reflecting a relatively mild demand destruction, yet the market faces the largest supply disruption in history.
- Strait of Hormuz Blockade: The International Energy Agency noted that Iran has effectively blockaded the Strait of Hormuz, impacting about 20% of global oil supplies, with normal export recovery expected to take months, disrupting global supply chains.
- Future Shortage Risks: ConocoPhillips executives warned that as summer approaches, import-dependent countries may face severe fuel shortages, particularly between June and July, as the impact of lost Middle Eastern oil supplies becomes increasingly apparent.
See More
Occidental Petroleum Halts New Hedging Strategy Amid Oil Price Volatility
- Hedging Strategy Shift: Occidental Petroleum faced a $339 million derivative loss in Q1 due to oil price volatility, and despite producing 617,000 barrels per day, the $76 ceiling on hedges prevented the company from benefiting from rising prices, highlighting the limitations of its hedging approach.
- Market Environment Changes: Anticipating a supply glut and modest demand growth, Occidental hedged 100,000 barrels per day at a floor of $55 and a ceiling of $76 earlier this year; however, with current prices exceeding the ceiling, the company's profitability has been adversely affected.
- Industry-Wide Challenges: Occidental is not alone, as ExxonMobil and Chevron also experienced profit declines due to hedging missteps, with Exxon’s Q1 earnings dropping from $7.3 billion to $4.9 billion, indicating a common risk across the oil sector.
- Future Strategic Direction: By halting new hedges at the $76 ceiling, Occidental aims to avoid being locked into lower prices amid rising oil costs, although this decision carries the risk of missing out on locking in current high prices if oil prices decline sharply, demonstrating the company's adaptability in a dynamic market.
See More
U.S. Stock Market Retreats as Oil Prices Surge
- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
- Strong Employment Data: Initial jobless claims in the U.S. rose by 10,000 to 200,000, indicating a stronger labor market than the expected 205,000, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, showcasing economic resilience.
- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
See More
US Stocks Show Mixed Movement, Tech Stocks Surge
- Tech Stock Surge: Datadog reported Q1 revenue of $1.01 billion, exceeding the consensus of $957.8 million, leading to a stock price increase of over 30%, which boosts overall market sentiment and reflects strong recovery in the tech sector amid high investor expectations for artificial intelligence.
- Stable Labor Market: Initial jobless claims rose by 10,000 to 200,000, lower than the expected 205,000, indicating resilience in the labor market, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, further enhancing market confidence.
- Crude Oil Price Decline: WTI crude oil prices fell by more than 4% as markets await updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, negatively impacting energy producers and leading to widespread declines in related stocks.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at
See More
Chevron: The Top Long-Term Energy Stock to Hold
- Sector Performance: The energy sector has emerged as the best-performing sector this year, with Chevron, as an oil and gas giant, showcasing strong market competitiveness through its operations across the entire value chain, including upstream, midstream, and downstream.
- Diverse Revenue Streams: Chevron's business encompasses exploration, production, transportation, and refining, ensuring that it can maintain profitability through multiple revenue channels during market fluctuations, thereby enhancing its long-term investment appeal.
- Stable Dividend Growth: With 39 consecutive years of dividend increases, Chevron demonstrates its ability to create shareholder value even amid economic cycles, further boosting investor confidence in its stock.
- Optimistic Market Outlook: Despite the cyclical nature of the energy industry, Chevron's vertically integrated business model allows it to effectively manage market downturn risks, making it a prudent choice for long-term stockholders.
See More
Buffett's Investment Portfolio Revealed
- Portfolio Concentration: As of December 31, 2025, over 70.9% of Buffett's Berkshire Hathaway portfolio is concentrated in five stocks: Apple, American Express, Bank of America, Coca-Cola, and Chevron, highlighting a highly concentrated investment strategy and risk management approach.
- Apple Holdings: Apple is Berkshire's largest holding with a market value of $61.9 billion, representing 22.6% of the portfolio; despite selling over 75% of its Apple shares in recent years, it remains a core asset, reflecting Buffett's commitment to long-term investments.
- Historical Investment Returns: Buffett first bought Coca-Cola in 1988 and American Express in 1963, and these long-held stocks have significantly appreciated over decades, becoming key pillars of Berkshire's portfolio, showcasing his investment foresight and patience.
- Investment Strategy Advice: To emulate Buffett's success, The Motley Fool recommends that investors build a diversified portfolio of at least 25 stocks, hoping to identify some big winners that can dominate their portfolios and drive wealth growth.
See More
Middle East Conflict Causes Global Oil Shortage
- Global Oil Shortage: Shell CEO Wael Sawan reported a current oil shortage of nearly one billion barrels, primarily due to locked-in and unproduced crude, with the gap deepening daily, indicating a long recovery process ahead.
- Limited Consumption Impact: Despite reduced oil supplies, jet fuel consumption in the airline industry has only declined by about 5%, reflecting a relatively mild demand destruction, yet the market faces the largest supply disruption in history.
- Strait of Hormuz Blockade: The International Energy Agency noted that Iran has effectively blockaded the Strait of Hormuz, impacting about 20% of global oil supplies, with normal export recovery expected to take months, disrupting global supply chains.
- Future Shortage Risks: ConocoPhillips executives warned that as summer approaches, import-dependent countries may face severe fuel shortages, particularly between June and July, as the impact of lost Middle Eastern oil supplies becomes increasingly apparent.
See More
Occidental Petroleum Halts New Hedging Strategy Amid Oil Price Volatility
- Hedging Strategy Shift: Occidental Petroleum faced a $339 million derivative loss in Q1 due to oil price volatility, and despite producing 617,000 barrels per day, the $76 ceiling on hedges prevented the company from benefiting from rising prices, highlighting the limitations of its hedging approach.
- Market Environment Changes: Anticipating a supply glut and modest demand growth, Occidental hedged 100,000 barrels per day at a floor of $55 and a ceiling of $76 earlier this year; however, with current prices exceeding the ceiling, the company's profitability has been adversely affected.
- Industry-Wide Challenges: Occidental is not alone, as ExxonMobil and Chevron also experienced profit declines due to hedging missteps, with Exxon’s Q1 earnings dropping from $7.3 billion to $4.9 billion, indicating a common risk across the oil sector.
- Future Strategic Direction: By halting new hedges at the $76 ceiling, Occidental aims to avoid being locked into lower prices amid rising oil costs, although this decision carries the risk of missing out on locking in current high prices if oil prices decline sharply, demonstrating the company's adaptability in a dynamic market.
See More
U.S. Stock Market Retreats as Oil Prices Surge
- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
- Strong Employment Data: Initial jobless claims in the U.S. rose by 10,000 to 200,000, indicating a stronger labor market than the expected 205,000, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, showcasing economic resilience.
- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
See More
US Stocks Show Mixed Movement, Tech Stocks Surge
- Tech Stock Surge: Datadog reported Q1 revenue of $1.01 billion, exceeding the consensus of $957.8 million, leading to a stock price increase of over 30%, which boosts overall market sentiment and reflects strong recovery in the tech sector amid high investor expectations for artificial intelligence.
- Stable Labor Market: Initial jobless claims rose by 10,000 to 200,000, lower than the expected 205,000, indicating resilience in the labor market, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, further enhancing market confidence.
- Crude Oil Price Decline: WTI crude oil prices fell by more than 4% as markets await updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, negatively impacting energy producers and leading to widespread declines in related stocks.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at
See More
