Chevron's Low-Carbon Buildout Deserves a Closer Look Now
Investors should know that Chevron is looking to embed renewable solutions directly into how they operate. This involves expanding the types of raw materials they use for fuels, and establishing a foothold in hydrogen production and carbon capture technology. It's a careful, well-thought-out strategy backed by real assets. Early examples of this growing low-carbon infrastructure include electrolyzers in Utah, facilities for storing carbon dioxide (CO2) at Bayou Bend, and new production sites at Pascagoula.
For investors, it would be wise to view these initiatives more as a long-term safety net. These new ventures will not replace Chevron's traditional energy business anytime soon. However, they should provide the company a sharper competitive edge as government policies and pricing for energy continue to evolve.
How Other Energy Giants Are Approaching Low-Carbon Growth
ExxonMobil XOM is making significant investments in cleaner energy. The company plans to spend up to $30 billion by 2030 on projects that reduce emissions, with many of these benefiting the wider industry. For instance, ExxonMobil's Baytown facility is becoming one of the world's largest "blue hydrogen" production sites, supported by large-scale carbon capture. Beyond this, ExxonMobil is actively developing biofuels, securing lithium for batteries, and creating advanced tools to cut methane leaks.
London-based Shell SHEL is also actively transforming its business to focus more on cleaner energy. In 2025, Shell sold off its onshore operations in Nigeria and acquired Pavilion Energy, showing a clear shift toward Liquefied Natural Gas and other transition fuels. The company plans to invest $10-15 billion in low-carbon solutions by 2025, including hydrogen and renewable energy. Shell's Holland Hydrogen I project in Rotterdam, powered by offshore wind, is a key part of its green strategy. Shell is also expanding its electric vehicle charging network and carbon capture and storage technologies.
The Zacks Rundown on Chevron
Shares of Chevron have gained more than 6% so far this year compared with the Oil/Energy sector's increase of 3%.
From a valuation perspective - in terms of price-to-book value - Chevron is trading at a premium compared to the industry average.
The Zacks Consensus Estimate for CVX's earnings has remained stable over the past seven days.
The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Globe and Mail
4 hours ago
- Globe and Mail
Chevron Q2 Earnings Beat Estimates as Production Hits Record
Chevron Corporation CVX reported adjusted second-quarter earnings per share of $1.77, beating the Zacks Consensus Estimate of $1.70. The outperformance stemmed from higher-than-expected production in the company's key upstream segment. The company's output of 3,396 thousand oil-equivalent barrels per day (MBOE/d) - a record - came in above the consensus mark of 3,326 MBOE/d. Healthy gain in natural gas realizations and stronger refined product sales margins also played their part. However, the bottom line came well below the year-ago adjusted profit of $2.55 due to weaker oil price realizations. The company generated revenue of $44.8 billion. The sales figure missed the Zacks Consensus Estimate of $47.1 billion and decreased 12.4% year over year. In the earnings release, Chevron management said that the completion of the Hess acquisition gives it a stronger and more balanced portfolio. It also sets the stage for production and free cash flow growth to continue for many years. By adding Hess's top-tier assets in places like Guyana, the United States, and the Gulf of America, the company now has one of the most competitive and unique collections of resources in the industry. Segment Performance Upstream: Chevron's production of crude oil and natural gas — at 3,396 MBOE/d — rose 3.2% year over year. The latest volume statistics primarily reflect higher volumes from the Permian Basin, Gulf of America and Kazakhstan, partly offset by lower production in the Rockies and asset sales. The U.S. output increased 7.8% year over year to an all-time high of 1,695 MBOE/d but the company's international operations (accounting for 50% of the total) edged down 1.1% to 1,701 MBOE/d. Despite overall volumes improving from last year. Chevron's second-quarter 2025 upstream segment profit fell 39% to $2.7 billion. This was primarily due to lower liquids realizations, which constitute more than 60% of Chevron's total production. To some extent, this was offset by higher natural gas sales prices. At $47.77 per barrel, Chevron's average realized liquids prices in the United States were more than 20% below the year-earlier levels, while prices overseas decreased 21.4% to $58.88 per barrel. As far as natural gas is concerned, the commodity more than doubled in the United States and improved 5% internationally. Downstream: Chevron's downstream segment recorded a profit of $737 million, up 23.5% from last year's income of $597 million. The gain primarily underlined higher product sales margins. Cash Flows, Capital Expenditure The company recorded $8.6 billion in cash flow from operations compared to $6.3 billion in the year-ago period due to the absence of prior-year working capital outflows and higher cash distributions from Kazakhstan. Chevron's free cash flow for the quarter was $4.9 billion. Further, Chevron paid $2.9 billion in dividends and bought back $2.7 billion worth of its shares. The Zacks Rank #3 (Hold) company spent around $3.7 billion in capital and exploratory expenditures during the quarter compared to the year-ago period's $4 billion. You can see the complete list of today's Zacks #1 Rank stocks here. Balance Sheet As of June 30, the only energy component of the Dow Jones Industrial Average had $4.1 billion in cash and cash equivalents and total debt of $29.5 billion with a debt-to-total capitalization of about 16.8%. Important Energy Earnings While we have discussed Chevron's second-quarter results in detail, let's take a look at some other key oil/energy reports of this season. Oil service biggie Halliburton HAL reported second-quarter 2025 adjusted net income per share of 55 cents, the same as the Zacks Consensus Estimate but below the year-ago quarter's profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth. Meanwhile, revenues of $5.5 billion were 5.5% lower year over year but beat the Zacks Consensus Estimate by 1.1%. Halliburton reported second-quarter capital expenditure of $354 million, higher than our projection of $338.2 million. As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. HAL bought back $250 million worth of its stock during the April-June period. The company generated $896 million of cash flow from operations in the second quarter, leading to a free cash flow of $582 million. Refining major Valero Energy VLO reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter's level of $2.71. Valero's total quarterly revenues decreased from $34.5 billion in the prior-year quarter to $29.9 billion. The top line, however, beat the Zacks Consensus Estimate of $27.8 billion. The better-than-expected quarterly results can be attributed to an increase in Valero's refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes. Meanwhile, energy infrastructure provider Kinder Morgan KMI reported second-quarter 2025 adjusted earnings per share of 28 cents, which met the Zacks Consensus Estimate. The bottom line increased year over year from 25 cents. Kinder Morgan's quarterly revenues of $4 billion beat the Zacks Consensus Estimate of $3.9 billion. The better-than-expected quarterly earnings were primarily due to robust natural gas demand and higher contributions from its Natural Gas Pipelines and Terminals segments. For 2025, Kinder Morgan reiterated its projected net income of $2.8 billion (up 8% from the 2024 level) and an Adjusted EPS of $1.27 (up 10%). The company expects dividends of $1.17 per share, up 2% from the prior-year figure. Kinder Morgan also anticipates a budgeted Adjusted EBITDA of $8.3 billion, up 4% from the previous year's level. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
CTV News
4 hours ago
- CTV News
Chevron beats Wall Street profit estimates with record output
The logo for Chevron appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew) HOUSTON — Chevron beat analyst estimates for second-quarter profit on Friday as record oil and gas production and lower capital expenditure helped to offset the impact of lower crude prices. The No. 2 U.S. oil major last month headed off a legal challenge from the biggest U.S. producer Exxon Mobil enabling it to close its US$55 billion acquisition of Hess. The deal includes a stake in the Stabroek Block oilfield, offshore Guyana, that Exxon operates, and should provide Chevron with a source of long-term growth to help to fund dividends into the 2030s and make Chevron's earnings more resilient to oil price volatility. International crude prices LCOc1 declined by 11 per cent during the quarter as OPEC+, the Organization of the Petroleum Exporting Countries and allied producers, increased output. Exxon Mobil also beat Wall Street estimates for second-quarter profit on Friday. 'We had strong execution, record production and exceptional cash generation,' said Chevron Chief Financial Officer Eimear Bonner in an interview. 'The financial performance was really underpinned by the stellar operational performance from across the company.' Adjusted earnings for the quarter ended June 30 were $3.1 billion, or $1.77 per share, beating consensus analyst estimates of $1.70 per share, according to data compiled by LSEG. Global production totaled 3.4 million barrels of oil equivalent per day, up from 3.3 million boed in the same period last year. Production from the Permian Basin, the biggest U.S. oilfield, reached 1 million boed during the quarter. Third-quarter production is expected to be lower by 60,000 boed due to maintenance. 'Following the clouds of uncertainty being lifted around the Hess deal, Chevron has hit the ground running with a strong set of results and beat versus market expectations,' said Biraj Borkhataria, an analyst with RBC Capital Markets, in a research note. Capital expenditure declined 7.5 per cent from the same period last year, as the company spent less on its downstream operations. Chevron raised its free cash flow guidance for 2026 to $12.5 billion. The company paid $2.9 billion in dividends and repurchased $2.6 billion worth of shares during the quarter. Although Chevron has said the Hess acquisition will allow it to increase dividends and repurchases over the long term, at least for this year, CFO Bonner said it did not expect to change its guidance of between $10 billion and $20 billion in full-year share repurchases. 'We're still in the range and we've got a strong program, and we wouldn't see a change unless we saw a sustained and significant shift in where the commodity prices are today,' she said. Earnings from oil and gas production, which make up the bulk of Chevron's profit, were $2.7 billion, down from $4.5 billion in the year-ago quarter. (Reporting by Sheila Dang in Houston and Arunima Kumar in Bengaluru; Editing by Marguerita Choy, Muralikumar Anantharaman and Barbara Lewis)
National Post
6 hours ago
- National Post
CORTEC Announces Acquisition of Houston-based Power Chokes™ from ADS Services
Article content HOUMA, La. — CORTEC, an internationally established U. S. manufacturer of choke, valve and automation products, announced today that it has acquired Power Chokes™ – a long-standing, prominent manufacturer of chokes and pressure control equipment – from ADS Services, a Black Bay Partners portfolio company. This acquisition includes the Power Chokes manufacturing division and all intellectual property associated with legacy Power Chokes equipment. Article content Established in 1988, Power Chokes has been a widely recognized, high-quality manufacturer of pressure control products and services for the oil and gas industry, including well control chokes, managed pressure drilling (MPD) chokes and pressure relief systems. Power Chokes has maintained a global presence for over 30 years, serving drilling contractors, operators and service companies across the industry. Article content This strategic acquisition strengthens CORTEC's commitment to cementing itself as the clear leader in manufacturing choke, valve and associated automation solutions for the global energy industry. By integrating Power Chokes' well-established base of chokes and pressure control equipment, this move significantly broadens CORTEC's footprint and expands its already extensive lineup of offerings for the worldwide energy sector. Article content 'Our team is excited to incorporate the Power Chokes brand and products into an expanding lineup of pressure control equipment offerings. This acquisition joins two leading brands in the well control choke and control systems market, combining a rich legacy of reliability and service within our sector,' said Bobby Corte Jr., CEO of CORTEC. 'We are honored to take custody of this long-established company and to instill the values, consistent quality and high reliability that the CORTEC brand is known for. We welcome the Power Chokes employees, customers and strategic partners to join us in this new, exciting chapter of our company.' Article content 'I want to thank the Power Chokes employees, customers and suppliers for years of dedication to the Power Chokes business. The team at CORTEC is perfectly situated to foster and continue to grow and support our product offerings. The ADS Services team looks forward to collaborating with CORTEC on our core managed pressure drilling business and the new product lines we are rolling out in the coming months,' said Charlie Orbell, CEO of ADS Services. Article content About CORTEC Article content Founded in January 2004, CORTEC is an internationally established US manufacturer of choke, valve and automation products suited to a range of global energy industry applications across upstream, midstream and downstream markets. CORTEC is a privately owned, vertically integrated organization comprised of two divisions, CORTEC Fluid Control (CFC) and CORTEC Manifold Systems (CMS). It engineers, manufactures, assembles and tests its products in Louisiana, USA under API 6A, 6D and 16C licenses with a quality system registered in accordance with API Q1 and ISO 9001. Article content About ADS Services Article content Based in the heart of the Permian Basin, ADS Services delivers cutting-edge managed pressure drilling (MPD) solutions that keep oil and gas drilling operations safe and efficient. The ADS management team has fostered MPD development for decades, and the company has delivered next-generation MPD solutions for US onshore and international operators. ADS has an operational base in Midland (TX) and a manufacturing and training base in Odessa (TX). ADS Services is a Black Bay Partners portfolio company. Article content Article content Article content Article content Contacts Article content MEDIA: Article content Article content Kristi Moore Article content Article content CORTEC Marketing Article content Article content Article content
