Chevron Corp

Global private investment in nuclear fusion hit a record $4.48 billion in 2025, up 69% from a year earlier, as major energy companies like Eni, Equinor, Chevron, Shell, and Cenovus ramp up their commitments. Eni plans to deploy a commercial fusion power plant in Europe by the early 2040s, building on its investment in Commonwealth Fusion Systems and a $1 billion agreement to buy electricity from the startup's first U.S. plant. Eni is also forming a joint venture with the UK Atomic Energy Authority to develop fuel systems for fusion reactors, targeting a large-scale tritium fuel-cycle facility by 2028. Commonwealth Fusion Systems raised another $1 billion in July, bringing its total funding to $4 billion, and its planned 400-MW ARC facility in Virginia is the first fusion project to apply for grid interconnection. Chevron has backed TAE Technologies and Zap Energy, while Shell invested in Zap's $130 million Series D round, and Cenovus's early bet on General Fusion is moving toward a Nasdaq listing.

Morgan Stanley chief U.S. equity strategist Michael Wilson warned that a renewed oil price spike is the single biggest near-term threat to American equities, calling the risk asymmetric because stocks get hurt more by a crude surge than they benefit from a dip. Wilson said equities historically face genuine trouble only when oil prices surge 75% to 100% year over year, a threshold crossed in just five of 23 geopolitical shock events his team studied. Morgan Stanley lifted its Brent crude forecast to around $90 in Q3, $100 in Q4, and $95 in Q1 2027, up from roughly $75 across all four quarters, and expects the Middle East supply recovery to extend well into 2027, keeping the market in deficit through Q4 2026 and Q1 2027. Wilson recommended energy shares such as Exxon Mobil and Chevron as a hedge, and reiterated his preference for quality stocks with high free cash flow and gross margins, while maintaining a year-end S&P 500 target of 7,800 to 8,000 contingent on stable or moderately rising oil prices.

The US Strategic Petroleum Reserve has fallen to 289.7 million barrels, its lowest level since November 1982, after a 3.7 million barrel draw last week, leaving the emergency buffer at just 41% of its 714 million barrel capacity. The drawdown is part of a planned 172 million barrel US contribution to an International Energy Agency release, and if completed, inventories could fall toward 243 million barrels, below the 252 million barrel threshold that restricts limited drawdowns under federal law. The Government Accountability Office found current effective drawdown capacity is about 2.7 million barrels per day versus a 4.4 million barrel design rate, with low cavern inventories contributing to limitations. Refilling the reserve would require buying roughly 200 million barrels, representing up to $18 billion in crude demand at $90 per barrel, a direct tailwind for upstream producers like Exxon Mobil and Chevron. The Energy Information Administration expects Middle Eastern production to return closer to pre-conflict levels in early 2027, but still sees about 600,000 barrels per day of disruption through the end of next year, while other chokepoints like the Strait of Malacca, Bab el-Mandeb, and the Turkish Straits remain vulnerable to disruption.

Iraq is seeking to more than double its oil production to between 8 million and 10 million barrels per day within six years, and three major U.S. energy companies are positioned to benefit. Chevron has signed memorandums of understanding for the West Qurna 2 and Nassiriya oil fields, with Iraq wanting Chevron to nearly double West Qurna 2's production to between 750,000 and 800,000 barrels per day. ConocoPhillips recently agreed to buy a 42% interest in BP Energy Company of Kirkuk, supporting redevelopment of four large-scale fields in northern Iraq, and is part of a consortium potentially developing the Akkas gas field. ExxonMobil signed an agreement last year to develop the Majnoon oilfield, which holds an estimated 38 billion barrels of oil in place, after leaving Iraq in 2023.

Diversified upstream E&P stocks delivered a strong second quarter, with the five companies tracked beating analysts' consensus revenue estimates by 9.7% as a group. ExxonMobil reported revenues of $116 billion, up 42.3% year over year and 6.8% above expectations, while Occidental Petroleum posted the biggest beat at 15.3% with revenues of $8.33 billion, up 57.1%. Chevron's revenues of $70.06 billion rose 56.3% and beat by 6.2%, Devon Energy's $6.89 billion was up 67.4% and beat by 10.3%, and ConocoPhillips' $19.52 billion rose 32.4% and beat by 9.6%. Share prices for the group have risen 10.9% on average since the latest earnings results.

ExxonMobil expects its free cash flow from Guyana to roughly double by 2030 compared with 2025, driven by higher-than-expected production and capital spending savings. The company's fifth floating production storage and offloading vessel is on track to start in the fourth quarter of 2026, adding 250,000 barrels per day of capacity, while a ninth FPSO is progressing toward a 2031 startup. ExxonMobil and its co-venturers have invested more than $55 billion in Guyana since 2014, with cost recovery capped at 75% of production and the remaining output shared equally between Guyana and the partners. Chevron holds a 30% interest in the Stabroek Block and expects high-margin oil growth into the 2030s, while TechnipFMC is positioned for continued subsea project demand. ExxonMobil shares have risen 47.8% over the past year, and the stock trades at a trailing EV/EBITDA of 9.21 times, above the industry average of 5.79 times.

Chevron shares edged higher Friday as Brent crude held near $94 per barrel amid shipping constraints in the Strait of Hormuz and increased U.S. economic pressure on Iran. The stock inched less than 0.1% higher to $205.84, with oil heading for a second straight weekly gain. Chevron reported second-quarter earnings of $12.1 billion as worldwide production jumped 20%, while operating cash flow excluding working-capital swings reached $19.7 billion and adjusted free cash flow climbed to $15.4 billion. The stock trades 29.74% above its GF Value estimate of $158.65, a premium that could evaporate if diplomatic efforts cool the oil market.

TechnipFMC has delivered its first 7-inch Subsea 2.0 horizontal christmas tree to Chevron Australia for the Gorgon stage three offshore project in north-west Western Australia. The unit, known as XT #1, was assembled at TechnipFMC's facility in Nusajaya, Malaysia, and is the first build of this particular configuration of the Subsea 2.0 platform. It is also the first horizontal christmas tree supplied under Chevron Australia's 20-year Master Service Order with TechnipFMC. The Gorgon stage three project will connect the Geryon and Eurytion offshore natural gas fields to existing processing facilities through a backfill development, and is the first in a planned series of subsea tie-back projects. TechnipFMC said the delivery expands potential applications for the Subsea 2.0 platform and demonstrates readiness for wider deployment.

Chevron Corporation has discovered an oil and gas condensate column exceeding 2,000 feet at its 105-4X exploration well in Block 0 offshore Angola, including more than 300 feet of net pay in an excellent-quality reservoir. The company plans to assess the discovery for a potential tie-back to nearby existing facilities, offering a potentially capital-efficient route to production. Chevron operates Block 0 with a 39.2% working interest and also holds a 31% interest in deepwater Block 14, a 36.4% stake in Angola LNG, and a 31% interest in the New Gas Consortium Project. The discovery follows first oil from the South N'dola Platform in Block 0 in December 2025. Chevron's shares have gained 6.9% in the past month, outperforming the Oil/Energy sector's rise of 4.7%, and the Zacks Consensus Estimate for its 2026 earnings is pegged at $15.86 per share, indicating 117.56% year-over-year growth.

U.S. refiners are posting record profits as global fuel shortages deepen, with Marathon Petroleum, Valero Energy, and Phillips 66 among the biggest winners of the second-quarter earnings season. Marathon Petroleum, America's largest refiner, earned $5.14 billion in the second quarter, more than quadruple the $1.2 billion it made a year earlier, while diluted EPS jumped to $17.73 and revenue reached $52.34 billion. Valero Energy posted a record second-quarter profit of $3.7 billion, with adjusted earnings surging from $2.28 to $12.54 per share, and Phillips 66 saw second-quarter adjusted earnings jump nearly 300% year-over-year to $9.41 per share. Shares of Marathon Petroleum have gained 122.2% year-to-date, Valero Energy 113.3%, and Phillips 66 85.3%, far outpacing the S&P 500 Energy sector's 36% gain. Chevron also delivered its best quarter in six years with adjusted earnings of $12 billion, or $6.06 per share, while Bloom Energy's second-quarter revenue surged 167% year-over-year to a record $1.07 billion on demand from AI data centers.

A new study warns that AI-driven productivity gains in the fossil fuel industry could outweigh emissions cuts from renewables. The paper, published in npj Climate Action, argues that net emissions reductions require renewables gains four to five times greater than fossil fuel gains. Rystad Energy estimates AI and digitalization will create nearly $500 billion in cumulative value for exploration and production companies between 2026 and 2030. Wood Mackenzie says AI could unlock an extra trillion barrels of oil from producing reservoirs. ExxonMobil and Chevron executives have both cited AI tools in identifying new drilling opportunities, including offshore Guyana.

Exxon Mobil and Chevron more than doubled their year-ago profits in the second quarter, combining for $26.6 billion as the closure of the Strait of Hormuz spiked crude prices. Exxon reported $14.5 billion in profit, up from $7.1 billion a year earlier, while Chevron reported $12.1 billion, up from $3.1 billion. Gas prices have surged from under $3 to $4.06 a gallon since the Iran war began, and President Trump threatening to bomb mediator Oman risks driving them higher. Both companies' integrated models capture profits from well to pump, but a Hormuz peace deal could collapse the windfall almost overnight.

Chevron has increased its oil production in Venezuela from 40,000 barrels per day to 250,000 barrels per day over the past few years, and based solely on its three current joint ventures in the country, output has risen 12% year on year to 280,000 barrels per day over the past six months. The U.S. supermajor expects production across Venezuela to rise by 50% between now and the end of 2028, bringing the total to 420,000 barrels per day. Venezuela still holds the world's largest proven crude reserves at roughly 303 billion barrels, about 17% of the global total, and of its 14 supergiant oil fields, 11 retain more than half of their original reserves. Back in the early 2000s, Venezuela's crude production was running at over 3 million barrels per day, while July saw average crude oil production by PDVSA and its foreign partners increase by 20,000 barrels per day to 1.21 million barrels per day. Spain's Repsol is targeting a tripling of production in the next two or three years, and BP has secured an official license to explore and develop Phase 2 of the offshore Loran gas field, which contains an estimated 4 trillion cubic feet of recoverable natural gas.

Chevron reported second-quarter revenue of $70.06 billion, a 56.3% increase from the same period last year and 21.78% above the Zacks Consensus Estimate of $57.53 billion. Earnings per share came in at $6.06, compared to $1.77 a year ago and surpassing the consensus estimate of $5.80 by 4.48%. Total net oil-equivalent production reached 4,070 million barrels of oil equivalent per day, exceeding the average analyst estimate of 4,047.93 million barrels. U.S. upstream net oil-equivalent production was 2,077 million barrels per day, above the 2,046.62 million estimate, while international upstream net oil-equivalent production was 1,993 million barrels per day, slightly below the 2,001.05 million estimate. Sales and other operating revenues totaled $67.2 billion, beating the $59.3 billion estimate, and income from equity affiliates surged 296.5% year over year to $2.13 billion.

Chevron achieved $1.5 billion of annual run-rate Hess synergies within one year of closing, six months ahead of schedule and 50% above its initial target. The acquired assets are generating strong free cash flow roughly double the incremental dividends tied to the acquisition and are accretive on a per-share basis. Worldwide net oil-equivalent production reached 4.07 million barrels per day in the second quarter of 2026, up 20% year over year, driven by legacy Hess assets, the Permian Basin, and the Gulf of America. Management expects Guyana to extend high-margin oil growth into the 2030s and remains confident in 2%-3% annual production growth through 2030. Second-quarter results benefited from an average Brent price of $104 per barrel, and Chevron carries a Zacks Rank of 3, or Hold, with Value, Growth, Momentum, and VGM Scores all at A.

Chevron shares rose roughly 3.3% Monday morning as Brent crude climbed back near $85 per barrel after Iran placed conditions on restoring shipping traffic through the Strait of Hormuz, reviving geopolitical risk that had faded the prior week. The integrated energy giant reported second-quarter earnings of $12.1 billion, with production reaching approximately 4 million barrels of oil equivalent per day, including a record 2.08 million barrels from the U.S. Upstream earnings hit $8.2 billion and downstream profit climbed to $4.9 billion, supported by U.S. refineries processing more than 1 million barrels per day, another record. Chevron returned $6.5 billion to shareholders through dividends and buybacks during the quarter. GuruFocus notes the stock trades at $192.63, about 21.87% above its GF Value estimate of $158.06, leaving little room for disappointment if oil prices weaken.

Chevron raised its production forecast to between 4 million and 4.1 million barrels per day for this year while advising that its capital spending will be closer to $18 billion than $19 billion. The company anticipates growing its free cash flow by about $12.5 billion this year. Added to the $16.6 billion the company generated last year, this implies 2026 FCF could surpass $29 billion, growing 75% year over year. Chevron stock rose 3.2% through 10:15 a.m. ET on Monday following the news.

Kazakhstan is considering re-routing part of its crude oil exports through pipelines via Azerbaijan, Georgia, and Turkey after Ukrainian drone attacks repeatedly disrupted shipments from Russia's Black Sea port of Novorossiysk. The Kazakh Ministry of Energy said on Monday that options include the Baku-Tbilisi-Ceyhan system, shipments across the Caspian Sea through Azerbaijan, and the Baku-Supsa route, while also boosting eastward supply via pipeline to China. Flows through the Caspian Pipeline Consortium, which handles most of Kazakhstan's crude exports from fields operated by international firms including Chevron, ExxonMobil, Shell, and Eni, were suspended on three separate occasions in July alone. The latest week-long shutdown briefly removed more than 1 million barrels per day of Kazakh production from the market, adding to global supply risks.

Chevron has emerged as the AI leader among major oil companies through a 20-year power purchase agreement with Microsoft, dubbed Project Kilby, which will supply 2.67 gigawatts of natural gas-fired electricity from West Texas to Microsoft data centers. The project, expected to come online in 2028 and ramp up through 2031, positions Chevron as a credible partner for hyperscalers seeking reliable, large-scale energy, with the company already in discussions for additional deals across other gas-rich regions including the Rockies and the Midwest. Chevron New Energies president Jeff Gustavson told Fortune that the company's unique combination of land, natural gas resources, project management scale, and early equipment reservations differentiates it from peers, and CEO Mike Wirth confirmed the Permian Basin could grow to support more such projects. The deal includes turbines from GE Vernova and Caterpillar, land and water services from Texas Pacific Land, and financial backing from Engine No. 1, and it can proceed behind the meter without impacting the Texas grid.

Chevron is broadening its North American base oils distribution network through new partnerships with HF Sinclair and Renkert Oil, effective May 1, 2027. The agreements extend Chevron's reach in Group II base oils and process oils, reinforcing its downstream business. The move follows second-quarter 2026 net income of US$12.07 billion and a maintained US$1.78 quarterly dividend. Chevron shares recently closed at US$186.41, up 10.9% over the past month and 19.6% year to date.

The prolonged blockade of the Strait of Hormuz has sent crude oil prices soaring, leading North American oil development companies to report stunning results for the April–June 2026 quarter. The average WTI price jumped from around 70 dollars in the April–June 2025 quarter to roughly 100 dollars in the same period of 2026, with six companies that have a high proportion of crude oil production—including ExxonMobil and Chevron—posting profit increases of 49 to 385 percent year on year. In contrast, four companies with a high share of natural gas production saw profits decline as the Henry Hub price fell from about 5 dollars to around 3 dollars, weighed down by a rise in associated gas from increased crude output. Transportation and storage firms generally enjoyed higher profits, buoyed by growing demand for US energy, while drilling-related companies had mixed results amid the turmoil in the Middle East.

The war in Iran has triggered a new global refining boom, sending refining margins to record highs and driving the strongest second-quarter earnings for Big Oil since the 2022 Russian invasion of Ukraine. Refining margins for gasoline and diesel hit new records amid Middle East escalation, Russia's diesel export ban, and low global fuel inventories, with Shell's global indicative refining margin rising to $24 per barrel from $17 in the first quarter. Shell more than doubled its second-quarter earnings year-over-year, TotalEnergies' adjusted net income jumped 68% to $6 billion, and U.S. supermajors ExxonMobil and Chevron reported their highest earnings in years, drawing criticism from President Donald Trump. Chevron achieved record refinery throughput of over 1 million barrels per day, while Exxon's CEO expects continued very robust refining margins. Even if supply disruptions ease, low inventories and restocking needs could support the global refining complex for several more quarters.

Big oil companies continue to post massive profits as fighting in Iran disrupts energy markets and sends oil and gasoline prices sharply higher. Six of Europe's largest oil companies posted combined first-quarter profits of $22 billion, more than 40% higher than last year, while BP's second-quarter profits more than doubled to $3.9 billion. Saudi Aramco reported a 44% year-on-year increase in second-quarter net profit to $32.69 billion, driven by higher crude oil, refined products, and chemicals prices. In the U.S., Exxon Mobil's second-quarter profits doubled to $14.5 billion on revenue of $116 billion, up 42%, and Chevron nearly quadrupled its profits to $12 billion with revenue jumping 56% to more than $70 billion. President Donald Trump criticized Chevron and Exxon Mobil for their outsized profits, saying they made too much money and should cut retail prices. Oil prices fell sharply on Tuesday, with U.S. crude dropping 5.4% to $75.98 per barrel and Brent crude falling 4.9% to $83.87 per barrel, after Treasury Secretary Scott Bessent said the U.S. and Iran may have a deal to open the Strait of Hormuz.

Berkshire Hathaway CEO Greg Abel has left the conglomerate's energy investments largely untouched while reshaping other parts of the stock portfolio, a move seen as a signal of long-term confidence in the sector. Abel trimmed the Apple stake, built a position in Alphabet, and closed out more than a dozen smaller holdings, but Chevron remains a top-five holding at roughly 7% of the equity portfolio and the large Occidental Petroleum stake has not been trimmed. The company also completed the purchase of Occidental's OxyChem business earlier this year, and wholly owned utility giant Berkshire Hathaway Energy, which Abel himself built, has been kept intact. Abel has noted that roughly half of Berkshire Hathaway Energy's businesses now serve AI-related power needs, suggesting the energy bets are a deliberate wager on surging electricity demand driven by artificial intelligence.

Diamondback Energy reported that the Iran conflict caused the largest oil supply shock in history, cutting global production by 13.6 million barrels per day and structurally raising the floor for oil prices. The company posted second-quarter revenue of $5.56 billion, beating Wall Street estimates of $4.81 billion, with adjusted earnings of $6.48 per share and free cash flow of $2.33 billion. CEO Kaes Van't Hof stated that rebuilding depleted global inventories will require sustained restocking, which has permanently elevated crude prices above pre-conflict levels. Diamondback raised its full-year production guidance and forecast third-quarter oil output between 517,000 and 527,000 barrels per day. The company warned that persistent high gasoline prices above $4 per gallon will continue to fuel inflation and complicate Federal Reserve rate decisions.

BP said Tuesday that its net profit more than doubled in the second quarter to $3.91 billion, up from $1.62 billion a year earlier, as the Middle East war roiled oil and gas markets. Total revenue increased 47 percent to $70 billion, while a core profit measure that strips out certain items more than doubled to $5.7 billion, outperforming expectations. The five biggest Western energy majors—BP, Chevron, ExxonMobil, Shell and TotalEnergies—reported combined net profits of almost $47 billion in the quarter. BP also raised its quarterly dividend by four percent and announced plans to sell its North Sea business and its US biogas business Archaea.