(Idea) Chevron
Chevron (CVX) is an integrated U.S. major with operations throughout the globe. At the end of 2023, the company produced approximately 2.7 million boe/d and 3.3 million boe/d if its non-consolidated affiliates are included. Its downstream production volumes stand at 1.4 million boe/d.
Among U.S. integrated oil and gas majors, we consider CVX inferior to ExxonMobil (XOM) and ConocoPhillips (COP) for long-term investment. CVX achieves a significantly lower return on capital employed and inferior growth prospects.
CVX shares are best suited for income investors, who may want to consider it over XOM and COP due to its higher dividend yield. CVX’s 4.1% yield is safe and significantly greater than XOM’s 3.2% yield and COP’s 2.8% yield.