Chevron (CVX) Bolsters Portfolio With Hess Deal and Permian Output Strength: A Strategic Pivot?

• On August 1, 2025, Chevron Corporation reported a second quarter earnings drop compared to the prior year, announced a US$1.71 per share quarterly dividend payable September 10, and appointed former Hess CEO John B. Hess to its board, while also completing a buyback tranche that saw over 18 million shares repurchased.
• Despite facing lower revenue and earnings, Chevron achieved record production in the Permian Basin and completed the acquisition of Hess, marking a significant portfolio expansion and ongoing operational momentum in a challenging commodity price environment.
• We'll examine how record Permian Basin production and the completion of the Hess acquisition shape Chevron's updated investment narrative.

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Chevron Investment Narrative Recap

If you're considering being a Chevron shareholder, it's essential to believe in the company's ability to sustain cash flows through oil and gas production growth, even as energy markets remain volatile and the pace of energy transition accelerates. The recent Q2 results, while highlighting operational strength in the Permian Basin and portfolio expansion via the Hess acquisition, do not materially change the biggest near-term catalyst, continued execution on production targets, or the key risk of exposure to commodity price swings, project delays, and energy transition pressures.

Among recent announcements, the completion of Chevron's US$2.6 billion share buyback tranche stands out. This directly links to capital return as a catalyst, reinforcing the company's commitment to shareholder payouts and underlining its financial flexibility, even as lower revenues and earnings draw attention to ongoing margin pressures and future capital allocation priorities.

Yet, despite operational progress, investors should be mindful that...

Read the full narrative on Chevron (it's free!)

Chevron's outlook anticipates $194.4 billion in revenue and $22.4 billion in earnings by 2028. This reflects a -0.9% annual revenue decline and an $8.7 billion increase in earnings from $13.7 billion currently.

Uncover how Chevron's forecasts yield a $167.09 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Twenty-eight members of the Simply Wall St Community place Chevron's fair value estimates anywhere from US$119.34 to US$548.54 per share. While opinions span a wide range, the company's high capital intensity brings heightened execution and price risk with implications for both returns and resilience. Explore how these varied perspectives might shape your own view.

Explore 28 other fair value estimates on Chevron - why the stock might be worth over 3x more than the current price!

Build Your Own Chevron Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chevron research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Chevron research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chevron's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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