Over the past year, the price of Brent Crude, a key global oil benchmark, has been as low as $70.31 and as high as $93.12. Over the past three years, the swing from peak to trough was even greater, with the low at $69.53 and the high at a whopping $133.18. Talk about a roller-coaster ride! This is why the smartest oil stock for most investors right now will be reliable industry giant Chevron (CVX 0.45%).Some key reasons to like ChevronBefore getting into Chevron's business, it is worth looking at one of the ...

Shares of Chevron (NYSE: CVX ) have now fully recovered from the Q2'24 earnings-related sell-off, which caused a steep decline in the energy producer's valuation. Chevron is growing its production, especially in the U.S., following the acquisition of PDC Energy last year. While Chevron suffered Analyst's Disclosure: I/we have a beneficial long position in the shares of XOM, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am ...

Core Viewpoint - The stock market, particularly the energy sector, has seen significant gains this year, with the average energy stock in the S&P 500 up over 10% [1]. Despite this rally, certain energy stocks like Chevron, MPLX, and Occidental Petroleum are highlighted as compelling investment opportunities. Chevron - Chevron is a leading integrated energy major with a market cap of $275 billion, diversified across upstream, midstream, and downstream operations [2]. - The company has a low debt-to-equity ratio of approximately 0.17, indicating strong financial health, and has a history of annual dividend increases for over 30 years [2]. - Chevron's stock has lagged behind the energy rally, primarily due to its ongoing acquisition attempt of Hess, which is complicated by Exxon's partnership with Hess [3]. - Despite potential setbacks from the Hess deal, Chevron is viewed as a long-term investment opportunity, offering a 4.2% dividend yield while navigating these challenges [4]. MPLX - MPLX units have appreciated about 25% this year, yet the master limited partnership still presents an attractive investment option [6]. - The partnership offers a high yield exceeding 8%, supported by a low valuation of around 10 times earnings and consistent distribution growth, including a recent 12.5% increase [7]. - MPLX has a conservative payout ratio and generated sufficient cash to cover distributions, capital spending, and acquisitions, with a low leverage ratio of 3.4 times [8]. - The company is expanding its midstream operations, enhancing capacity and cash flow, making it a strong buy for investors comfortable with MLPs [9]. Occidental Petroleum - Occidental Petroleum's shares have underperformed, trading 15% lower in 2024, raising concerns about its debt levels amid falling oil prices [10]. - The company reported strong Q3 profits, attributed to increased production from its recent $12 billion acquisition of CrownRock, which is expected to enhance cash flows [11]. - Occidental is committed to divesting $4.5 billion in assets and repaying debt within a year of the acquisition, having already repaid $4 billion in Q3 [12]. - The acquisition has allowed Occidental to raise its production guidance for the Permian Basin, positioning the company for continued cash flow generation and debt reduction [13].

If you are looking at dividend-paying oil stocks today, there are three interesting ways to play the sector.Oil and natural gas are highly volatile commodities. That's probably the first lesson that investors in energy stocks learn from owning shares in companies like Chevron (CVX 1.94%) and Devon Energy (DVN 0.69%). Even more-stable industry participants, like Enterprise Products Partners (EPD 1.38%), can see their value shift around because of investor sentiment.But there's a reason to consider all three ...

Chevron's dividend blends high yield and reliability.Chevron (CVX 2.21%) stock has rallied 5.5% since the company reported third-quarter 2024 earnings on Nov. 1. The integrated oil and gas major continues to deliver solid results and return capital to shareholders through a combination of buybacks and dividends.Chevron is projected to pay around $11.8 billion in dividends in 2024, which is even more than well-known passive income powerhouse Coca-Cola, which should end up paying around $8 billion in dividend ...

QatarEnergy has entered into a significant accord with Chevron Corporation (CVX) to acquire a 23% stake in Egypt's offshore North El-Dabaa (H4) block. The block is located 10 kilometers off the Mediterranean coast in Egypt, with water depths ranging from 100 to 3,000 meters, signifying valuable potential for oil and gas exploration. Per the agreement, CVX, one of the world's largest publicly traded oil and gas companies, will retain its block-operator role with a 40% stake, and Woodside and Tharwa Petroleum ...

Chevron Corporation(CVX) has extended the Shelf Drilling’s contracts for its Chaophraya and Krathong rigs, which have been operating offshore in Thailand for another two years. The combined contract valued at $197 million will ensure continued operations after the completion of its current contract in the second half of 2025. The contract extension will maintain CVX’s drilling activities in the Gulf of Thailand and mark a successful partnership between Chevron and Shelf Drilling in offshore exploration.Cust ...

Chevron Corporation (CVX) recently reported its third-quarter 2024 earnings, which beat estimates primarily due to production growth in key regions. CVX achieved a 7% year-over-year increase in oil-equivalent output, with significant contributions from record U.S. production and new projects in the Gulf of Mexico. Investments in fields like Anchor and Jack/St. Malo are projected to lift Gulf of Mexico production further, providing a growth engine that supports Chevron's earnings and cash flow trajectory. Fi ...

Financial Performance - Net income attributable to Chevron Corporation for Q3 2024 was $4.5 billion ($2.48 per share — diluted), compared to $6.5 billion ($3.48 per share — diluted) in Q3 2023[59] - Sales and other operating revenues decreased by $2.996 billion in Q3 2024, primarily due to lower refined product and crude oil prices[86] - Income from equity affiliates decreased by $52 million in Q3 2024, mainly due to lower earnings from GS Caltex and TCO, partially offset by higher earnings from CPChem[87] - Purchased crude oil and products decreased by $1.878 billion in Q3 2024, primarily due to lower refined product and crude oil prices[89] - Operating, selling, general, and administrative expenses increased by $424 million in Q3 2024, driven by higher environmental reserve and transportation costs[90] - Exploration expenses decreased by $147 million in Q3 2024, primarily due to lower charges for well write-offs[91] - Income tax expense decreased by $190 million in Q3 2024 compared to Q3 2023, primarily due to a $2.2 billion decrease in total income before tax[97] - U.S. income before tax decreased by $1.6 billion in Q3 2024, driven by lower downstream margins and upstream realizations, resulting in a $498 million decrease in U.S. income tax expense[97] - International income before tax decreased by $616 million in Q3 2024, primarily due to unfavorable foreign currency effects and higher operating expenses, leading to a $308 million increase in international income tax expense[98] - Sales and other operating revenues for the nine months ended September 30, 2024, were $72.362 billion, compared to $100.405 billion for the year ended December 31, 2023[106] - Net income for the nine months ended September 30, 2024, was $45.620 billion, a significant increase from $12.190 billion for the year ended December 31, 2023[106] - Current assets as of September 30, 2024, were $16.467 billion, down from $19.006 billion as of December 31, 2023[107] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $22.797 billion, slightly down from $23.175 billion for the same period in 2023[111] - Free cash flow for the nine months ended September 30, 2024, was $10.687 billion, compared to $11.707 billion for the same period in 2023[111] - Capital expenditures (capex) for the nine months ended September 30, 2024, were $12.110 billion, up from $11.468 billion for the same period in 2023[111] - The company's net debt ratio as of September 30, 2024, was 11.9%, up from 7.3% as of December 31, 2023[109] - The current ratio as of September 30, 2024, was 1.1, down from 1.3 as of December 31, 2023[109] - The debt ratio as of September 30, 2024, was 14.2%, up from 11.5% as of December 31, 2023[109] Upstream Operations - Upstream earnings in Q3 2024 were $4.6 billion, down from $5.8 billion in Q3 2023, primarily due to unfavorable foreign currency and tax effects, and lower realizations[59] - Chevron's upstream earnings are closely tied to crude oil and natural gas prices, which are influenced by global economic conditions, OPEC+ actions, and regional supply disruptions[65] - Tengizchevroil LLP (TCO) achieved start-up of the Wellhead Pressure Management Project (WPMP) in April 2024, with all four pressure boost facility compressors online by September 2024 and 14 metering stations converted to low pressure[67] - Chevron's worldwide net oil-equivalent production averaged 3.33 million barrels per day in the first nine months of 2024, a 10% increase from the same period in 2023, driven by the acquisition of PDC Energy and production growth in the Permian and DJ Basin[68] - Brent crude oil averaged $83 per barrel in the first nine months of 2024, compared to $82 per barrel in the same period in 2023, while WTI crude oil averaged $78 per barrel, up from $77 per barrel in 2023[68] - U.S. Henry Hub natural gas prices averaged $2.20 per MCF in the first nine months of 2024, down from $2.49 per MCF in 2023, with third-quarter 2024 prices averaging $2.12 per MCF[68] - Chevron's U.S. upstream earnings increased by $687 million in the first nine months of 2024, driven by higher sales volumes of $2.2 billion, partially offset by higher depreciation, depletion, and amortization of $1.1 billion[75] - International upstream earnings decreased by $2.2 billion in the first nine months of 2024, primarily due to an unfavorable swing in tax effects of $800 million and lower sales volumes of $560 million[77] - U.S. net oil-equivalent production increased to 1,605 MBOED in Q3 2024, up from 1,407 MBOED in Q3 2023[101] - International net oil-equivalent production remained stable at 1,759 MBOED in Q3 2024 compared to 1,739 MBOED in Q3 2023[101] Downstream Operations - Downstream earnings in Q3 2024 were $595 million, a significant decrease from $1.7 billion in Q3 2023, mainly due to lower margins on refined product sales[59] - U.S. downstream earnings decreased by $1.2 billion in Q3 2024 due to lower margins on refined product sales, partially offset by $180 million higher earnings from CPChem[78] - Refinery crude unit inputs increased by 15,000 barrels per day (2%) in Q3 2024, driven by the absence of planned turnaround at the Richmond refinery[78] - Refined product sales increased by 9,000 barrels per day (1%) in Q3 2024[78] - International downstream earnings increased by $142 million in Q3 2024, driven by higher margins on refined product sales, despite unfavorable foreign currency effects of $79 million[81] - Refined product sales in international markets increased by 76,000 barrels per day (5%) in Q3 2024, driven by higher demand for gasoline and jet fuel[81] - Total refined product sales in the U.S. increased to 1,312 MBD in Q3 2024, up from 1,303 MBD in Q3 2023[101] Asset Sales and Portfolio Optimization - Chevron plans to target $10-15 billion in asset sales over the 5-year period ending in 2028[65] - Chevron announced the sale of its 20% non-operated interest in the Athabasca Oil Sands Project and 70% operated interest in the Duvernay shale for $6.5 billion before taxes, expected to close in Q4 2024[65] - Chevron aims to achieve $2-3 billion in structural cost reductions by the end of 2026 through portfolio optimization and technology leverage[65] - Chevron announced a $6.5 billion sale of its interest in the Athabasca Oil Sands Project and Duvernay shale assets, expected to close in the fourth quarter of 2024[71] Strategic Initiatives and Investments - Chevron supports the Paris Agreement and is working to lower the carbon intensity of its operations while growing lower carbon businesses in renewable fuels, carbon capture, and hydrogen[61] - The company started production at the Anchor project in the Gulf of Mexico, marking the successful delivery of an industry-first high-pressure deepwater technology[71] - Chevron cleared the Federal Trade Commission antitrust review for its pending merger with Hess Corporation, satisfying a key closing condition for the transaction[71] - Capital expenditures increased by $642 million to $12.1 billion in the first nine months of 2024, driven by higher upstream investments[103] Shareholder Returns and Debt Management - The company paid $8.9 billion in dividends to common stockholders during the first nine months of 2024[103] - The company repurchased 32.2 million shares for $4.7 billion in Q3 2024, with total repurchases under the 2023 Program reaching 141.4 million shares for $21.9 billion[107] - Total debt and finance lease liabilities increased to $25.8 billion at September 30, 2024, up from $20.8 billion at December 31, 2023[103] - Cash, cash equivalents, and marketable securities totaled $4.7 billion at September 30, 2024, down from $8.2 billion at year-end 2023[103] Tax and Regulatory Matters - The company's effective tax rate can fluctuate significantly due to earnings volatility and the mix of higher or lower tax rate jurisdictions[63] - The company will pay $550 million to the City of Richmond over ten years as part of a new tax agreement effective July 1, 2025[68] Supply Chain and Inflation Management - Chevron is actively managing supply chain and inflation impacts through fixed price and index-based contracts, and partnerships with suppliers for demand planning[63]

While certainly not an atrocious performer - I think the majors have held up remarkably well compared to independents - Chevron (NYSE: CVX ) has had its fair share of concerns raised by market participants. I would say that the three mainAre you an investor looking for quality research within the oil and gas industry? Energy Investing Authority is the source. While commodity prices are up and so too are shareholder dividends, it can be easy to chase yield and buy the wrong firms. Income investors cannot aff ...