NYSE:CVX
CHEVRON CORP
A diversified global energy giant delivering integrated oil, gas, and chemical products with a strong balance sheet and consistent cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Chevron offers an attractive dividend yield supported by a fortress balance sheet with $324.01B in total assets and manageable debt levels, allowing for consistent capital allocation. The company's integrated model provides hedging capabilities against price volatility, making it a defensive play in the current energy landscape.
Bear Case
The downward trend in revenue over the last three years and declining net income suggest potential headwinds from lower pricing environments or reduced production volumes. High operating expenses of $61.07B relative to gross profit margins may limit upside potential if commodity prices do not recover significantly.
About CHEVRON CORP
Chevron Corporation is a global integrated energy company operating across upstream oil and gas exploration, downstream refining and marketing, and chemical manufacturing. Serving markets worldwide with core products including crude oil, natural gas, refined fuels, and petrochemicals, the company leverages its extensive asset base to deliver energy solutions while managing operational complexity.
Analysis
Management Discussion
In 2025, revenue declined to $189.03B from $202.79B in 2024, reflecting lower commodity prices or volume adjustments, while net profit decreased to $12.48B compared to $17.75B the prior year. Despite the contraction, strong operating cash flow of $33.94B continues to fund significant shareholder returns via $12.75B in dividends and $12.08B in share repurchases.
Industry Overview
The global energy industry remains critical but faces structural transformation driven by the transition to renewable sources and stricter environmental regulations. Major players like Chevron must balance traditional hydrocarbon production with investments in low-carbon technologies to maintain long-term relevance.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $246.25B | $200.95B | $202.79B | $189.03B |
| Cost of Revenue | $145.42B | $119.20B | $119.21B | $108.21B |
| Gross Profit | $100.84B | $81.75B | $83.59B | $80.82B |
| Operating Expenses | $51.16B | $52.17B | $56.08B | $61.07B |
| Operating Income | $49.67B | $29.58B | $27.51B | $19.74B |
| R&D | $268.0M | $320.0M | $353.0M | $427.0M |
| G&A | $4.31B | $4.14B | $4.83B | $5.13B |
| D&A | $16.32B | $17.33B | $17.28B | $20.13B |
| Other OpEx | $46.58B | $47.71B | $50.89B | $55.52B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $49.67B | $29.58B | $27.51B | $19.74B |
| Income Tax | $14.07B | $8.17B | $9.76B | $7.26B |
| Continuing Ops | $35.61B | $21.41B | $17.75B | $12.48B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $35.61B | $21.41B | $17.75B | $12.48B |
| Minority Interest | $143.0M | $42.0M | $88.0M | $186.0M |
| Net to Common | $35.47B | $21.37B | $17.66B | $12.30B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $50.34B | $41.13B | $40.91B | $38.55B |
| Cash & Equivalents | $17.68B | $8.18B | — | — |
| Marketable Securities | $223.0M | $45.0M | $0 | $0 |
| Accounts Receivable | $18.20B | $17.64B | $18.34B | $15.99B |
| Inventory | $8.25B | $8.61B | $9.07B | $9.71B |
| Other Current Assets | $6.00B | $6.65B | $13.50B | $12.86B |
| Long-Term Assets | $207.37B | $220.50B | $216.03B | $285.46B |
| Goodwill | $4.72B | $4.72B | $4.58B | $4.57B |
| Operating Leases | $4.26B | $5.42B | $5.32B | $6.05B |
| Other LT Assets | $153.77B | $164.25B | $159.52B | $231.80B |
| Total Assets | $257.71B | $261.63B | $256.94B | $324.01B |
| Current Liabilities | $34.21B | $32.26B | $38.56B | $33.39B |
| Accounts Payable | $18.95B | $20.42B | $22.08B | $19.28B |
| Current Debt | $2.69B | $1.65B | $4.01B | $2.35B |
| Current Leases | $1.11B | $1.54B | $1.52B | $1.83B |
| Taxes Payable | $4.38B | $1.86B | $1.87B | $844.0M |
| Other Current Liab | $-419.0M | $-871.0M | $590.0M | $-1.68B |
| Long-Term Liabilities | $63.26B | $67.44B | $65.22B | $98.45B |
| LT Operating Leases | $2.92B | $3.70B | $3.55B | $4.15B |
| Other LT Liab | $60.34B | $63.75B | $56.29B | $89.65B |
| Total Liabilities | $97.47B | $99.70B | $103.78B | $131.84B |
| Shareholders' Equity | $160.24B | $161.93B | $153.16B | $192.18B |
| Retained Earnings | $190.02B | $200.03B | $205.85B | $205.37B |
| AOCI | $-2.80B | $-2.96B | $-2.76B | $-2.46B |
| Treasury Stock | $48.20B | $59.06B | — | — |
| Total L&E | $257.71B | $261.63B | $256.94B | $324.01B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $35.61B | $21.41B | $17.75B | $12.48B |
| Non-Cash Adjustments | $4.86B | $16.56B | $8.38B | $29.36B |
| Working Capital Changes | $9.13B | $-2.37B | $5.36B | $-7.91B |
| Cash from Operations | $49.60B | $35.61B | $31.49B | $33.94B |
| Cash from Investing | $-12.11B | $-15.23B | $-8.94B | $-15.91B |
| Debt Issuances | $0 | $150.0M | $478.0M | $11.40B |
| Share Buybacks | $11.26B | $14.94B | $15.23B | $12.08B |
| Dividends Paid | $10.97B | $11.34B | $11.80B | $12.75B |
| Cash from Financing | $-24.98B | $-30.11B | $-23.47B | $-19.06B |
| FX Effect | $-190.0M | $-114.0M | $-97.0M | $58.0M |
| Net Change in Cash | $12.33B | $-9.85B | $-1.01B | $-977.0M |
| Beginning Cash | $6.79B | $19.12B | $9.28B | $8.26B |
| Ending Cash | $19.12B | $9.28B | $8.26B | $7.29B |
Frequently Asked Questions
How does CHEVRON CORP make money?
The company's revenue is driven by three primary segments: Upstream (crude oil and natural gas exploration and production), Downstream (refining crude into fuels and marketing them globally), and Chemicals (manufacturing and selling petrochemicals to various industries).
What are the main risks for CVX?
Investors should consider exposure to volatile oil and natural gas commodity prices, regulatory pressures regarding environmental compliance and carbon emissions, geopolitical instability affecting international operations, and potential shifts in energy demand due to decarbonization trends.
What is CVX's competitive advantage?
Chevron benefits from a low-cost operational profile due to mature asset portfolios, a massive global refining network providing pricing flexibility, and a robust balance sheet that supports shareholder returns through dividends and buybacks.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.