CHEVRON CORP (CVX)

Price—Loading quote

AI: Fair-priced

Price checkThe shares offer reasonable cash returns, but little protection against weaker oil prices.

At the August 17 premarket quote of $199.86, roughly 1.98 billion diluted shares imply a $395 billion equity value. The last four reported quarters produced about $20.6 billion of earnings and $27.0 billion of free cash flow—cash left after operations and capital spending. That equals about 19 times earnings and a 6.8% cash yield. The annualized $7.12 dividend yields 3.6%. However, 2025 free cash flow supports only a 4.2% yield, making the price fair rather than clearly cheap.

Big pictureChevron generates substantial cash, but oil prices can quickly transform its results.

Annual earnings swung from a $5.5 billion loss in 2020 to $35.5 billion in 2022, then fell to $12.3 billion in 2025. Free cash flow similarly ranged from $1.7 billion to $37.6 billion. The cycle remained visible in 2026: first-quarter earnings were $2.2 billion, while second-quarter earnings reached $12.1 billion as the Brent oil benchmark averaged $104 per barrel versus $81 previously. Chevron’s scale provides durability, but one unusually profitable quarter should not be treated as normal earning power.

Business strengthLiquidity remains comfortable, although the Hess purchase increased debt and the share count.

June 2026 figures show $9.6 billion of cash, $37.1 billion of debt and $27.5 billion of net debt, only about 0.6 times trailing operating cash flow. Current assets of $49.1 billion exceed current liabilities of $39.2 billion. Debt had risen from $24.5 billion at 2024 year-end, but Chevron repaid $8.4 billion during the latest quarter. The Hess purchase issued about 301 million shares; buybacks partly offset that dilution. First-half dividends and repurchases totaled $12.6 billion, within free cash flow of $16.5 billion.

What could change the storyLasting Hess gains would support the price, while normalized oil profits could expose overvaluation.

The strongest bull case is that Hess assets and new projects permanently raise cash generation: production reached 4.07 million oil-equivalent barrels daily, up 20%, while annual merger savings reached $1.5 billion. If yearly free cash flow holds near $25–30 billion while debt falls, today’s price represents a defensible 6–8% cash yield. The bear case is a return toward 2025 free cash flow of $16.6 billion; the resulting 4.2% yield would leave limited room for roughly $25 billion of annual dividends and buybacks without renewed borrowing.

$199.86 price considered

AI: News

Quarterly profit surgeHigher oil prices, record production, and strong refineries sharply increased Chevron’s quarterly profit.

On July 31, 2026, Chevron reported $12.1 billion of second-quarter earnings, or $6.11 per diluted share; adjusted earnings of $6.06 exceeded the reported analyst consensus of $5.56. Production rose 20% from a year earlier to 4.07 million oil-equivalent barrels daily, while free cash flow reached $18.1 billion. The shares closed 2.35% higher that day, although timing alone does not establish that the results caused the move.

Hess savings arrive earlyHess integration produced savings faster than promised and expanded Chevron’s long-term production base.

On July 31, 2026, Chevron said annual Hess-related savings had reached $1.5 billion, 50% above the original target and six months early. Legacy Hess assets contributed materially to the quarter’s 20% production increase. The acquisition also gave Chevron a 30% interest in Guyana’s Stabroek Block, which contains more than 11 billion discovered recoverable oil-equivalent barrels. This improves the growth case, although shareholders absorbed roughly 301 million newly issued Chevron shares when the transaction closed.

Microsoft power agreementMicrosoft committed to buy power for twenty years, opening a less oil-sensitive growth path.

On June 22, 2026, Chevron announced a 20-year agreement to supply a Microsoft data-center campus in West Texas. Project Kilby is planned to reach 2.67 gigawatts, with first power expected in 2028. Chevron targets returns in the mid-teens and describes the future cash flow as less dependent on oil prices. However, financial terms were not disclosed, and a final investment decision remains scheduled for late 2026, so the project is promising rather than secured value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$184.43B	$193.41B	$196.91B	$235.72B	$155.61B	$94.47B	$139.87B	$158.90B	$134.67B	$110.22B	$138.48B	$211.97B	$228.85B	$241.91B	$253.71B	$204.93B	$171.64B	$273.00B	$220.90B
Research & development	$427.0M	$353.0M	$320.0M	$268.0M	$268.0M	$435.0M	$500.0M	$453.0M	$433.0M	$476.0M	$601.0M	$707.0M	$750.0M	$648.0M	$627.0M	$526.0M	$603.0M	$702.0M	—
Operating expenses	$28.00B	$27.46B	$24.89B	$24.71B	$20.73B	$20.32B	$21.39B	$20.54B	$19.13B	$19.90B	$23.03B	$25.29B	$24.63B	$22.57B	$21.65B	$19.19B	$17.86B	$20.80B	$16.93B
Net income	$12.30B	$17.66B	$21.37B	$35.47B	$15.63B	−$5.54B	$2.92B	$14.82B	$9.20B	−$497.0M	$4.59B	$19.24B	$21.42B	$26.18B	$26.89B	$19.02B	$10.48B	$23.93B	$18.69B
Basic EPSper diluted share	$6.65	$9.76	$11.41	$18.36	$8.15	-$2.96	$1.55	$7.81	$4.88	-$0.27	$2.46	$10.21	$11.18	$13.42	$13.54	$9.53	$5.26	$11.74	$8.83
Diluted EPSper diluted share	$6.63	$9.72	$11.36	$18.28	$8.14	-$2.96	$1.54	$7.74	$4.85	-$0.27	$2.45	$10.14	$11.09	$13.32	$13.44	$9.48	$5.24	$11.67	$8.77

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)68$495.99M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 20, 2026Form 4	HESS JOHN BDirector	SellCommon Stock · indirect	3.0K	$197.45	$599.3K	278.0K
May 20, 2026Form 4	HESS JOHN BDirector	SellCommon Stock · indirect	30.6K	$196.74	$6.02M	281.1K
May 20, 2026Form 4	HESS JOHN BDirector	SellCommon Stock · indirect	7.0K	$195.97	$1.38M	311.7K
May 20, 2026Form 4	HESS JOHN BDirector	SellCommon Stock · indirect	42.7K	$194.65	$8.31M	318.7K
May 20, 2026Form 4	HESS JOHN BDirector	SellCommon Stock · indirect	59.0K	$193.79	$11.44M	361.4K

Review ownership filings at SEC.gov ↗

CHEVRON CORP (CVX)

Financial charts

Financial statements

Insider buys & sells