Chevron Corporation
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. It operates through Upstream, Downstream, and All Other segments. The Upstream segment engages in the exploration for, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; carbon capture and storage; and operation of a gas-to-liquids plant. Its Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels; transports crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufactures and markets commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. The All Other segment engages in cash management and debt financing; insurance; real estate; and technology activities. It has operations in North America, South America, Europe, Africa, Asia, and Australia. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is headquartered in Houston, Texas.
- Low leverage (D/E 0.24) — conservative balance sheet
- Reasonable dividend yield of 3.66%
- Low beta of 0.49 — defensive characteristics
- Large-cap scale — index inclusion, institutional coverage, deep liquidity
- Modest ROE of 6.6% — capital efficiency lags peers
- Forward P/E of 15.4x is below trailing — market expects earnings growth
- PEG of 0.80 — growth is under-priced
- Positioned in Energy — cyclical sector, aligned with respective macro cycles
- Earnings declining -44.5% YoY — margin/demand headwinds
