What every Chevron Investor Should Know Before Buying

Core Viewpoint - Chevron's focus on profits over production may lead to steady gains in the coming years despite current challenges in the oil industry [1][2]. Financial Performance - Chevron reported Q3 2025 results showing year-over-year declines in revenue and net income, with revenue at $49.73 billion (down 1.9% from $50.7 billion in Q3 2024) and net income at $3.5 billion (down 22.2% from $4.5 billion) [3]. - Earnings per share (EPS) decreased to $1.82, a 26.6% decline from $2.48 in the previous year [3]. - The company's production increased by 21% to 4.1 million barrels of oil equivalent (BOE) daily, contributing to better-than-expected results [3]. Strategic Focus - Chevron's new agenda emphasizes stronger cash flow and growing value, with plans to modestly increase annual production by 2%-3% while reducing capital expenditures by approximately $1 billion [6]. - Cost-cutting measures could save Chevron up to $4 billion annually by 2026 [7]. - The company is also pursuing new growth opportunities, including a gas power plant in Texas aimed at supplying energy for AI data centers [7]. Cash Flow and Returns - Chevron anticipates a 10% annual increase in cash flow from now until 2030, with a significant portion of this growth returned to investors through share repurchases and dividends [8]. - The company has a strong dividend growth track record, with 37 consecutive years of dividend increases, and a current forward dividend yield of around 4.4% [9]. Valuation - Chevron is currently priced at nearly 20 times forward earnings, which is a slight premium compared to ExxonMobil, but further growth could sustain this valuation [10].