If you are looking at ExxonMobil (XOM -0.89%) you are probably also considering Chevron (CVX -0.46%). And if you are considering Chevron you are also probably looking at ExxonMobil. That's because, in some ways, the two stocks can be viewed as interchangeable. But there are differences, especially right now. Here's why you might want to buy one of these integrated energy giants over the other. Buy Exxon or Chevron today? You probably wouldn't be making a mistake if you bought either one of these industry-le ...

Core Insights - Chevron reported earnings per share (EPS) that exceeded analyst estimates for the first fiscal quarter, despite a decline in average petroleum prices compared to the same period last year [1] Financial Performance - The company achieved better-than-expected EPS results, indicating strong operational performance [1] - The decline in average petroleum prices suggests a challenging market environment, yet Chevron managed to outperform expectations [1]

Consolidation in the Oil Industry - A consolidation wave has occurred in the oil sector, with ExxonMobil initiating a $64.5 billion acquisition of Pioneer Natural Resources and Chevron planning to buy Hess for $60 billion [1][2] BP's Strategic Shifts - BP has faced challenges and undergone two significant strategy shifts, initially pledging to cut capital spending on oil and gas projects by 40% to focus on clean energy [4] - Due to a recovery in oil prices and underperformance, BP has revised its strategy, reducing renewable investment from $5 billion to $1.5 billion to $2 billion annually while increasing oil and gas capital investment to $10 billion per year [5][6] BP's Production Goals - BP aims to increase its overall oil and gas output to an average of 2.5 million barrels of oil equivalent (BOE) per day by 2030, up from less than 2.4 million BOE last year [6] Comparison with Competitors - BP's strategy contrasts with U.S. oil giants like Exxon and Chevron, which have clear multi-year strategies for shareholder value growth, including Exxon's $140 billion investment plan and Chevron's focus on advantaged assets [7][8] Potential Takeover Interest - BP's underperformance has made it a potential takeover target, with companies like Shell, Exxon, Chevron, TotalEnergies, and Adnoc Gas reportedly considering acquisitions [10][12] - Shell has expressed hesitance, preferring stock repurchases over acquiring BP, citing the need to stabilize its own operations first [11] Challenges to Acquisition - BP's significant debt of $77 billion, partly from the Deepwater Horizon disaster, poses a challenge for potential acquirers, as it could negatively impact their balance sheets [13] - Regulatory scrutiny in the U.K. may also hinder any acquisition attempts, as there may be resistance to foreign control of BP [13] Investment Appeal - Despite speculation around a potential acquisition, BP's shifting strategy and financial challenges make it a less appealing investment compared to Exxon and Chevron, which have more defined growth strategies [14]

Financial Performance - Net income attributable to Chevron Corporation for Q1 2025 was $3.5 billion ($2.00 per share — diluted), down from $5.5 billion ($2.97 per share — diluted) in Q1 2024, representing a 36.4% decrease [99]. - Upstream earnings in Q1 2025 were $3.8 billion, a decline of 27.7% from $5.2 billion in Q1 2024, primarily due to lower liftings and unfavorable foreign exchange effects [100]. - Downstream earnings in Q1 2025 were $325 million, down 58.6% from $783 million in Q1 2024, mainly due to lower margins on refined product sales [100]. - Sales and other operating revenues for Q1 2025 were $46.101 billion, a decrease from $46.580 billion in Q1 2024, attributed to lower refined product and crude oil prices [154]. - Income from equity affiliates fell to $820 million from $1.441 billion, primarily due to lower upstream-related earnings from TCO in Kazakhstan [155]. - Cash provided by operating activities in Q1 2025 was $5.2 billion, down from $6.8 billion in the year-ago period [171]. - Free cash flow for Q1 2025 was $1,262 million, down from $2,739 million in Q1 2024 [182]. - Net income for Q1 2025 was $6,435 million, while the net income for the year ended December 31, 2024 was $73,119 million [179]. Cost Management and Asset Sales - Chevron plans to achieve $2-3 billion in structural cost reductions by the end of 2026 through portfolio optimization and technology enhancements [119]. - The company is targeting $10-15 billion in asset sales over the five-year period ending in 2028 to augment financial performance [115]. Shareholder Returns - The company repurchased 25.0 million shares for $3.9 billion in Q1 2025, part of a $75 billion share repurchase program initiated in April 2023 [179]. - The company expects share repurchases in Q2 2025 to be between $2.5 billion and $3.0 billion [179]. Production and Operations - The company's worldwide net oil-equivalent production averaged 3.35 million barrels per day, relatively flat year-over-year, with a 4% increase in U.S. production [135][144]. - Chevron's U.S. upstream earnings decreased by $217 million to $1.858 billion, primarily due to higher operating expenses and lower liquids realizations [144]. - International upstream earnings fell by $1.3 billion to $1.9 billion, driven by lower liftings and unfavorable foreign currency effects [146]. - U.S. downstream earnings dropped by $350 million to $103 million, mainly due to lower margins on refined product sales [148]. - International downstream earnings decreased by $108 million to $222 million, impacted by lower margins and unfavorable foreign currency effects [150]. Tax and Expenses - The effective tax rate for the company can change significantly during periods of earnings volatility, influenced by the mix of earnings across different tax jurisdictions [110]. - Income tax expense decreased by $300 million to $2.07 billion in Q1 2025, attributed to a decrease in total income before tax of $2.3 billion [164]. - U.S. income before tax decreased from $2.6 billion in Q1 2024 to $1.9 billion in Q1 2025, a decline of $736 million [165]. - International income before tax decreased from $5.3 billion in Q1 2024 to $3.7 billion in Q1 2025, a decline of $1.6 billion [166]. - Operating, selling, general and administrative expenses rose to $7.63 billion in Q1 2025 from $7.54 billion in Q1 2024, mainly due to higher legal reserves [158]. - Exploration expenses increased to $187 million in Q1 2025 from $129 million in Q1 2024, primarily due to higher dry hole expenses [159]. - Depreciation, depletion and amortization expenses slightly increased to $4.12 billion in Q1 2025 from $4.09 billion in Q1 2024 [160]. Market Conditions - Crude oil prices averaged $76 per barrel in Q1 2025, down from $83 per barrel in Q1 2024, with a sensitivity of approximately $450 million for every dollar change in Brent prices [129]. - Purchased crude oil and products increased to $28.61 billion in Q1 2025 from $27.74 billion in Q1 2024, driven by higher natural gas and crude oil prices [157]. Strategic Initiatives - Chevron entered into a definitive merger agreement with Hess Corporation in October 2023, reflecting confidence in the acquisition [116]. - Between January and March 2025, Chevron purchased 15,380,000 shares of Hess common stock, representing approximately 4.99% of Hess's outstanding shares [117]. - Chevron continues to develop oil and gas resources while aiming to lower carbon intensity and grow new businesses in renewable fuels and carbon capture technologies [107]. - The Wellhead Pressure Management Project at Tengizchevroil LLP became fully operational at year-end 2024, with oil production from the Future Growth Project ramping up by the end of Q1 2025 [122]. Financial Position - Total debt and finance lease liabilities increased to $29.7 billion at March 31, 2025, up from $24.5 billion at December 31, 2024 [172]. - The debt ratio increased to 16.6% as of March 31, 2025, compared to 13.9% at December 31, 2024 [182]. - Current assets increased to $19,086 million as of March 31, 2025, up from $16,918 million at December 31, 2024 [179]. - Current liabilities decreased to $29,262 million as of March 31, 2025, from $30,563 million at December 31, 2024 [179]. - Noncontrolling interests were $836 million at March 31, 2025, slightly down from $839 million at December 31, 2024 [181].

Core Viewpoint - Chevron Corporation's Q1 2025 earnings report shows a mixed performance, with adjusted earnings beating expectations but revenues missing, reflecting ongoing challenges in the energy market and investor concerns about the company's positioning [1][4][16]. Financial Performance - Adjusted earnings were $2.18 per share, down 26% year-over-year, while revenues fell 2.3% to $47.6 billion, missing estimates [1][4]. - Upstream earnings decreased by 28.3% year-over-year due to weaker oil prices and flat production levels, while downstream profits slumped nearly 60% due to lower margins [4]. - Free cash flow was $1.3 billion, significantly below prior-year levels, but the company returned $6.9 billion to shareholders through dividends and buybacks [4]. Capital Management - Chevron has reduced its second-quarter buyback target to $2.5-$3 billion from $3.9 billion in Q1, indicating a cautious approach amid a shaky macro landscape [5]. - The company maintained capital discipline, spending $3.9 billion in Q1 and pursuing a $2–$3 billion cost reduction initiative through 2026 [7]. - Chevron's debt-to-capital ratio is around 16.6, indicating a strong balance sheet compared to global oil majors [7]. Asset Quality - Chevron benefits from a high-quality asset base, particularly in the Permian Basin, where 80% of its acreage has low or no royalty obligations, enhancing long-term returns [6]. - The company is also developing new projects like Ballymore in the Gulf of America and has strong operations in the Tengiz field in Kazakhstan [6]. Acquisition and Legal Issues - A significant concern is the pending $53 billion acquisition of Hess Corporation, which includes a 30% stake in the Stabroek block offshore Guyana [11]. - The arbitration case with ExxonMobil and CNOOC regarding the acquisition could impact Chevron's growth prospects, with hearings scheduled for late May [11][12]. Market Sentiment and Valuation - The broader market sentiment is challenging, with falling oil prices due to global trade tensions and OPEC+ developments affecting upstream earnings [13]. - Chevron trades at an EV/EBITDA multiple of 5.83, which is attractive compared to ExxonMobil and below its five-year historical average, suggesting potential value for long-term investors [14]. Conclusion - Chevron's Q1 performance highlights its strengths in cost control and operational efficiency, but macro headwinds and legal uncertainties cloud the near-term outlook [16]. - The company appears appropriately priced given its strong balance sheet and disciplined capital management, with a Zacks Rank of 3 (Hold) indicating a cautious stance for investors [17].

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Chevron Corp. NYSE: CVX stock has been surprisingly volatile since it announced earnings on May 2. Supply and demand are under pressure from the current administration’s tariff policies. Plus, like all oil companies, Chevron has been facing oil prices under $60 since OPEC+ announced it was increasing production. The move by OPEC+ underscores the cyclical nature of energy stocks in general and, in particular, oil stocks. It’s also where an opportunity is presenting itself to long-term investors. Chevron Toda ...

Core Insights - The S&P 500 index offers a low dividend yield of 1.3%, while companies like NextEra Energy, Chevron, and Enbridge provide significantly higher yields, with Enbridge at 5.8% [1] NextEra Energy - NextEra Energy has a current dividend yield of approximately 3.3%, more than double that of the S&P 500 index, and has increased its dividend annually for 30 years [2] - The company boasts an annualized dividend growth rate of 10% over the past decade, with management projecting this growth to continue [2][3] - NextEra operates a regulated utility in Florida and has a growing clean energy business, positioning it well for future growth in the clean power sector [3] Chevron - Chevron offers a dividend yield of 5%, having increased its dividend for 38 consecutive years, with growth rates surpassing inflation over the past decade [5] - As an integrated energy company, Chevron operates across exploration, transportation, and refining, which helps mitigate the volatility associated with commodity prices [6][7] - The company maintains a strong balance sheet, allowing it to support its business and dividend even during downturns in the energy market [7] Enbridge - Enbridge has the highest dividend yield on the list at 5.8%, with a history of increasing dividends for 30 consecutive years [8] - The company focuses on energy transportation through its North American midstream network, providing stable cash flows regardless of oil and natural gas prices [8][10] - Enbridge is also investing in cleaner energy options, including natural gas utilities and renewable energy projects like solar and wind farms [9][10] Investment Opportunities - Despite a low dividend environment in the broader market, attractive high-yield stocks like NextEra Energy, Chevron, and Enbridge present solid investment opportunities for dividend-focused investors [11]

Two energy behemoths — Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) — came up with mixed first-quarter 2025 results amid falling crude oil prices. Both companies beat estimates for earnings estimates but missed the same for revenues. This has put the focus on energy ETFs like Energy Select Sector SPDR (XLE) , Vanguard Energy ETF (VDE) , iShares U.S. Energy ETF (IYE) , Fidelity MSCI Energy Index ETF (FENY) and Strive U.S. Energy ETF (DRLL) , with the largest allocation to energy behemoths.Earnings in Focu ...

Core Viewpoint - Chevron is highlighted as an attractive investment for passive income through its dividends, with a strong history of dividend growth and financial flexibility to support future increases [1][6]. Dividend Information - Chevron currently pays a quarterly dividend of $1.71 per share, totaling $6.84 annually [4]. - To achieve $10,000 in annual dividends, an investor would need to own approximately 1,462 shares, requiring an initial investment of about $199,212 at the current share price of $136.26 [4]. Dividend Growth Potential - Chevron announced a 5% increase in its dividend payout in January 2025, marking the 38th consecutive annual dividend increase [6]. - The company's dividend payout ratio stands at roughly 67%, indicating the ability to maintain and moderately increase dividends without financial strain [7]. Financial Metrics - Chevron generated free cash flow of $15.3 billion in 2024, with dividends paid amounting to $11.8 billion, suggesting the capacity to allocate more free cash flow to dividends if desired [8]. - The company aims to increase its free cash flow by $10 billion by 2026 through enhanced production and reduced expenses [9]. Share Repurchase Program - In 2024, Chevron repurchased $15.2 billion of its outstanding shares and plans to continue with annual stock buybacks between $10 billion and $20 billion, which can enhance shareholder value by reducing the number of outstanding shares [10]. Future Outlook - Despite recent stock performance challenges, Chevron is increasing production and investing in renewable energy and carbon capture initiatives, which may yield significant long-term benefits [11].