Morningstar Rating

Stock Research and Analysis

by Allen Good, CFA

Bulls Say

Growth is expected to increase post-2015 thanks to the startup of several projects, including the Gorgon LNG project, which should lead all majors while maintaining peer-leading liquids exposure.
Chevron has accumulated U.S. unconventional acreage through smaller deals in higher-quality plays like the Permian and Marcellus, thus avoiding overpaying and destroying value like many peers.
Chevron should realize improved downstream earnings and returns as conditions in its California refineries improve and new chemical production capacity is added via its CPChem joint venture. Read more 

Bears Say

Chevron's higher growth is the result of higher spending, which will result in returns deterioration and lower free cash flow unless oil prices remain above $100/bbl.
Cost inflation and currency appreciation plagued Chevron's Gorgon LNG development in Australia, damaging returns on a key project.
Ongoing legal action related to Chevron's now-ceased Ecuadorean operations could result in a significant monetary judgment against the company. The case is likely to drag on for years, prolonging the uncertainty. Read more 

Management

John Watson assumed the CEO and chairman position in 2010 after serving as vice chairman. He joined Chevron in 1980 and has held several different senior management roles, including president of international exploration and production and CFO. We like   Read more 

Profile

Chevron is an integrated energy company with exploration, production, and refining operations worldwide. With production of 2.6 million of barrels of oil equivalent a day   Read more 

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