Chevron Stock Slibles when the price of oil falls, but the cost remains News ad

Chevron Corp. NYSE: CVX The shares were surprisingly volatile since the announcement Earnings on May 2The demand and supply field are under pressure from the tariff policy of the current administration. Plus, like all oil companies, Chevron collided Oil prices up to $ 60 With OPEC+ announced that this increases production. The OPEC+ movement emphasizes Cyclic nature energy reserves in general and, in particular, oil reserves. It is also where the opportunity is provided Long -term investorsField

Chevron Today

$ 135.48 -3.02 (-2,18%)

As of 5.05.2025, 03:59

52-week range

$ 132.04

▼

$ 168.96

Dividend yield

5.05%

P/e ratio.

13.94

Value is valuable

$ 163.75

For the first quarter of 2025, Chevron Squick on the income on a rally for three centsThe field however $ 2.18 EPS was 30% lower compared to the same period last year. Company income He also came to the light. A 47.61 billion dollars There was less than 49.05 billion dollars Expected by analysts.

Investors were not completely surprised when Chevron forced the income. Nevertheless, the subsequent volatility was unusual for a reserve, usually known for stability. CVX shares fell by about 2% After the report came out, but He rallied strongly and finished the day 2.6%Field

However, the profit was short -lived after OPEC+ announced that he would increase production. This announcement will only increase cyclic weakness in energy reserves tied to the oil market.

Chevron is still waiting for his blow to Trump

At the conference -conference of the company, CEO of Chevron Mike VirtClearly made it clear that Trump administration tariff policy It was a key reason why oil prices continue to be under pressure. In early April, before the proposed tariffs were announced, oil was traded in Range of mid -80 dollarsThe field from May 5 is less than $ 60 per barrelField

In fact, this cyclic weakness is the reason why the company refers to retreat for the number of it Share ransomThe field in the nearest quarter Chevron expects to redeem between 2.5 billion dollars and 3.0 billion dollars of sharesThis field is about 30% less than $ 3.9 billion, which he acquired in the first quarter.

Another unique area of ​​disputes between Chevron and the Trump administration is the company drilling operations in VenezuelaThe Chevron field is the only American oil company with active activities in the country, and it exports more than 25% of all oil productivity in the country. (about 240,000 barrels per day)Field

Why can Chevron weakness actually emphasize its strength

With the exception of the announcement of OPEC+, other macroeconomic influences on Chevron were known before the income report. This does not prevent traders from first selling and asking questions later. However, if you are an investor with long -term prospects, the main values ​​are of meaning.

For example, Chevron is still extracting 3.35 billion barrels of oil per dayThis field leads to a significant increase in the free cash flow, which, as the company showed, will increase the cost of shareholders.

This leads to another issue. Some analysts express concern that Chevron cuts out its ransom at a time when Exxon Mobil Corp. NYSE: Xom and Shell PLC NYSE: walked announced that everyone supports a ransom at their current levels.

However, the Chevron program was one of the richest of its kind from the very beginning. The company has Bake approximately 50 billion dollars The cost of shares over the past three years.

In addition, even if it retains the current level of ransom on the remaining part of 2025, he will still be in his previous annual leadership in the amount of 10 to 20 billion dollars in the form of a ransom.

In addition, Chevron is Dividend aristocratIN Increase dividends in the last quarter in the 38th year in a rowField

Chevron shares verification depends on wider economic trends

The decision to buy Chevron shares is largely dependent on the investor Economic prospectsThe field investors expect a recession can see further shortcomings for CVX. However, when shares are traded about a three -year minimum and Relative force index in the high 30 yearsThere is a case that The recent sale may be exaggeratedField

On the other hand, those who expect a sharp restoration of the economy may expect that the oil shares will lead reboundThe field but by the time this impulse is clear, it may be too late to buy with a discount. That’s why he can now imagine An attractive entrance point For Long -term investorsallowing them to pick up Chevron shares on a relative transaction, collecting Reliable dividends At this time.

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