- Q4 Earnings & Share Repurchases Chevron reported $2.8B in Q4 earnings ($1.39/share) and repurchased $3B in shares, reflecting strong cash flow generation.
- Permian Production Milestone Achieved 1 million barrels of oil equivalent/day in the Permian Basin, reinforcing U.S. production leadership and free cash flow growth.
- 2025 Production Growth U.S. production hit a record high, with net oil equivalent growth at the top of guidance (6-8%), excluding Hess acquisition impacts.
- Future Volume Projections TCO volume expected to grow 30,000 bbls/day in 2026, with 25% production growth and doubled earnings/cash flow by 2030 from Eastern Mediterranean projects.
- Cost Efficiency & AI Integration $1.5B in cost savings secured to date, with $2B+ annualized savings by year-end, driven by operational efficiency and AI-driven supply chain improvements.
Operational Highlights
The company's operational performance was marked by significant milestones, including achieving 1,000,000 barrels of oil equivalent per day in the Permian and closing the Hess acquisition, creating a premier upstream portfolio. The company's advantaged assets in the Eastern Mediterranean continue to grow, with multiple high-return projects advancing to bring world-class gas to regional markets.
Valuation Metrics
Chevron's valuation metrics indicate a relatively stable position, with a P/E Ratio of 28.62, P/B Ratio of 1.89, and EV/EBITDA of 9.45. The company's Dividend Yield is 3.86%, and its Free Cash Flow Yield is 4.57%. These metrics suggest that Chevron is trading at a premium, but its strong financial performance and growth prospects may justify this valuation.
Growth Prospects
The company expects volume growth to continue in 2026, driven by project ramp-ups, a full year of Hess assets, and continued efficiency in its Shield portfolio. The company's TCO production is expected to grow by 30,000 barrels of oil equivalent per day, delivering near its original plan. Chevron is also exploring opportunities in the petrochemicals sector, including potentially acquiring more of CPChem.
Strategic Focus
Chevron's strategic focus remains on high-grading its portfolio, driving breakevens down, and maintaining a strong balance sheet. The company is committed to returning value to shareholders through dividends and share repurchases, with $3,000,000,000 spent on share buybacks in the fourth quarter. As the company continues to execute its strategy, its strong financial performance and growth prospects are likely to drive long-term value creation.