Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, 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; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

Chevron appears to be a financially sound company with a strong asset base and a good ability to generate profits, but the market is already pricing in a noticeably high level of quality. On valuation multiples, the stock trades above the industry median on almost all key metrics: P/E, P/S, P/B, and especially P/FCF, which limits the potential for further re-rating. At the same time, the business itself does not look weak: revenue, EBITDA, operating profit, and net profit are at high absolute levels and have generally improved compared with earlier periods. Profitability is also decent, but compared with the industry it does not stand out on the upside: net margin, operating margin, and gross margin are below the median, which suggests that the valuation premium is not fully supported by superior operating efficiency. ROE is noticeably weaker than the industry and has been declining over the years, which is an important downside for capital efficiency. ROA and ROI look acceptable, and ROA is even above the median, but that is not enough to fully offset the weak ROE and expensive valuation multiples. Debt load, by contrast, is comfortable: debt/equity is significantly below the industry median, and both current and quick ratios are at around acceptable levels. The balance sheet position is strong, with very large equity and sustained growth in net worth, total assets, and equity, which supports the company’s investment profile. Dividend yield has declined compared with previous periods, so the dividend argument is less compelling now than it was before. Overall, the fundamentals point to a high-quality but no longer cheap asset, where a strong balance sheet and profitability are offset by a high valuation and less-than-ideal profitability trends. For an investor, this suggests a moderately cautious stance: the intrinsic value is supported, but the room for meaningful upside is limited by the current premium to the industry.

Chevron Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок на стороне быков.

Weak index, significantly down. The market is on the bulls' side.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Chevron has a strong balance sheet and high profitability, but the stock is already trading at a premium to the industry, while return on capital and dividend yield have weakened.

Key Points
Venezuelan production could more than double from current levels.
Low production costs could support substantial long-term profits.
Political risks remain, but Chevron's established operations provide advantages.
Chevron (NYSE: CVX) is preparing to invest more than $7 billion in Venezuela over the next five years, expanding its presence in a country with some of the world's largest oil reserves. In fact, the company recently secured improved commercial and legal terms for its Venezuelan joint ventures, along with additional drilling acreage in the country's oil-rich Orinoco Belt. But the number you should watch isn't the $7 billion investment. It's 600,000 barrels per day. That's Chevron's production target for Venezuela, representing more than double its 2026 output.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why production growth is the key
Chevron's three Venezuelan joint ventures produced about 280,000 barrels of oil per day in the second quarter of 2026, up 15% from the previous six months. So reaching 600,000 barrels per day would add roughly 320,000 barrels of daily production.
At an illustrative oil price of $70 per barrel, that additional output would represent approximately $8.2 billion in annual gross oil sales before accounting for operating costs, government payments, and Chevron's ownership stakes in the joint ventures. That's not trivial.
Chevron also expects total production costs to remain below $20 per barrel, potentially leaving substantial room for profits if oil prices remain favorable. Of course, Venezuela carries significant political and regulatory risks. Years of underinvestment have also left much of the country's oil infrastructure in need of repair. That can't be ignored.
A strategic advantage
Chevron has operated in Venezuela for more than a century and already has producing assets, infrastructure, and established partnerships. That said, the company's investment case extends well beyond Venezuela, with major operations in the United States and other international markets.
On a global scale, Chevron already produces more than 4 million barrels of oil equivalent per day. The additional 320,000 barrels per day targeted in Venezuela would represent roughly 8% of that total, although Chevron's actual share would be smaller because it doesn't fully own the joint ventures. So while Venezuela isn't likely to make or break Chevron, it could still become a meaningful source of additional cash flow, particularly if production costs remain below $20 per barrel. And that does make Venezuela relevant.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,333,920!*
Now, it’s worth noting Stock Advisor’s total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 20, 2026.
Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.

Chevron Is Pouring Billions Into Venezuela. Here's the 1 Number Investors Should Watch.

The S&P 500 Index ($SPX) (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.50%. December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.
Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low. Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout. Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation.
Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok. The 10-year T-note yield rose +1 bp to 5.09%.
Friday’s US economic news was mixed for stocks. The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures. However, Sep manufacturing production rose +0.3% m/m, right on expectations.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high. Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies. Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.58%. China's Shanghai Composite closed up +0.24%. Japan's Nikkei-225 Stock Average closed up +1.39%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday. The 10-year T-note yield rose +2.7 bp to 5.085%. Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes. Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes. Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.
European government bond yields were mixed on Friday. The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.
ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."
Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market. Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%. Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%. In addition,
CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years. Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.
The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market. Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials. Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%. Apple (AAPL) bucked the trend and closed up +0.43%.
Cybersecurity stocks retreated on Friday. Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%. Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.
Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100. Also, ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.
Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%. Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.
Defensive food producers moved higher on Friday amid the slump in the broader market. Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM), Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.
Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stock Indexes Finish Sharply Lower as Tech Stocks Plunge

At Holdings Channel, we have reviewed the latest batch of the 56 most recent 13F filings for the 09/30/2026 reporting period, and noticed that Chevron Corporation (Symbol: CVX) was held by 34 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in CVX positions, for this latest batch of 13F filers:
In terms of shares owned, we count 14 of the above funds having increased existing CVX positions from 06/30/2026 to 09/30/2026, with 13 having decreased their positions and 4 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the CVX share count in the aggregate among all of the funds which held CVX at the 09/30/2026 reporting period (out of the 1,146 we looked at in total). We then compared that number to the sum total of CVX shares those same funds held back at the 06/30/2026 period, to see how the aggregate share count held by hedge funds has moved for CVX. We found that between these two periods, funds increased their holdings by 900,558 shares in the aggregate, from 23,538,578 up to 24,439,136 for a share count increase of approximately 3.83%. The overall top three funds holding CVX on 09/30/2026 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Chevron Corporation (Symbol: CVX).
Further CVX Research:

See Which Recent 13F Filers Hold CVX

BP p.l.c. BP has outlined its expectations for the third quarter of 2026, highlighting substantial balance-sheet improvement and a stronger refining environment. The update points to improving financial flexibility ahead of the company's third-quarter 2026 earnings release.
Debt Reduction Likely to Strengthen BP’s Financial Position
BP expects third-quarter net debt of $13.5-$14.5 billion, down sharply from $22.3 billion at the end of the second quarter. Management forecasts a $9-$10 billion decline in the combined total of net debt, hybrid securities, leases and Gulf of America settlement liabilities. This reduction enhances the company's financial flexibility and supports its ability to manage obligations while funding priority investments.
Refining Margins Provide a Major Tailwind for BP
BP expects stronger realized refining margins to add $1.9-$2.1 billion to its products segment performance compared to the second quarter. The company's refining indicator margin averaged $46.7 per barrel, up from $29.6 in the preceding period. These conditions strengthen the downstream business’ earnings outlook, despite expected throughput declining to 1.375-1.405 million barrels per day following the Gelsenkirchen divestment.
Gas Business Offers Additional Earnings Support for BP
The gas and low-carbon energy segment is expected to benefit from a $100-$300 million improvement in realizations compared with the previous quarter. Management anticipates significantly stronger gas marketing and trading results. These factors provide another source of earnings support as BP navigates changing commodity markets.
BP’s Upstream Volumes Remain Resilient
BP projects reported third-quarter upstream production of 2.190-2.240 million barrels of oil equivalent per day (MMBoe/d) compared with 2.201 MMBoe/d in the second quarter of 2026. The recovery from seasonal maintenance is expected to support production, partially offsetting the impact of reduced equity interests in Latin America and ongoing Middle East disruptions. Higher gas production helps offset softer oil production and lower operating volumes.
Lower Oil Prices Present an Offset for BP
Brent crude averaged $96.99 per barrel during the third quarter, down from $103.85 in the second quarter of 2026. BP expects this environment and changes in non-Henry Hub natural gas markers to weigh on oil production and operations realizations by $200-$400 million. The customer's business faces weaker fuel margins and higher base oil costs, underscoring the need for diversified earnings streams.
BP’s Investment Outlook Remains Balanced
Despite the positive outlook, BP's anticipated post-tax impairment charges of $3-$4.5 billion, primarily associated with its transition businesses, warrant investor attention. Although these charges are excluded from underlying replacement cost profit, they highlight challenges related to asset valuation.
However, stronger refining margins, improved gas trading performance and significant debt reduction are expected to strengthen BP's financial position and enhance its investment appeal. The upcoming third-quarter 2026 results and December strategy update will offer further insights into the company's growth prospects and capital allocation priorities.
BP’s Zacks Rank & Other Key Picks
BP currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the energy sector include Shell plc SHEL, Chevron Corporation CVX and Eni S.p.A. E. SHEL, CVX and E currently sport a Zacks Rank #1 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Like BP, Shell, Chevron and Eni operate across the upstream and downstream segments of the energy industry, making their business model sensitive to fluctuations in commodity prices.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report

BP Unveils Q3'26 Outlook With Lower Debt & Stronger Refining Margins

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

The S&P 500 Index ($SPX) (SPY) is down by -0.07% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.42%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.69%. December E-mini S&P futures (ESZ26) are down -0.05%, and December E-mini Nasdaq futures (NQZ26) are down -0.65%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a 2.5-week high. The broader market is under pressure from higher crude oil prices, with WTI crude up more than +2% today on concerns about escalating tensions in the Middle East after repeated Houthi attacks on Saudi Arabia from neighboring Yemen. Weakness in chipmakers and AI-infrastructure stocks is also weighing on the overall market today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks have support from the prospect of solid quarterly earnings results that will begin this week. Goldman Sachs today raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” Also, strength in software stocks and energy producers is supportive of the overall market.
Market activity may be below normal, as the cash Treasury market is closed today for the Columbus Day bank holiday.
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
Nov WTI crude oil prices (CLX26) are up more than +2% today after Iran-backed Houthi rebels in Yemen launched drone and missile attacks against Saudi Arabia over the weekend, raising the risk of escalation that could draw the US into the conflict. Also, there's been a recent escalation of drone and missile attacks against vessels traversing the Strait of Hormuz, limiting energy exports from the region. Limiting gains in crude are the prospects of Russia releasing diesel supplies into theglobal marketafter the US Treasury issued a waiver for previously sanctioned Russian fuel. Last Friday, Russia said it will partially lift its ban on diesel exports, allowing 500,000 MT of diesel fuel to reach international markets following an agreement between Russian President Putin and US President Trump.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +0.44%. China's Shanghai Composite closed down -0.43%. Japan's Nikkei-225 Stock Average did not trade, as Japanese markets were closed today for the Health Sports Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -2.5 ticks today. The 10-year T-note yield is not trading today, as the cash Treasury market is closed for the Columbus Day bank holiday. Dec T-notes are under pressure today as higher crude oil prices raise inflation expectations.
European government bond yields are mixed today. The 10-year German bund yield is down -0.5 bp to 3.476%. The 10-year UK gilt yield is up +0.1 bp to 5.444%.
ECB Governing Council member Yannis Stournaras said the ECB may raise interest rates again to curb inflation but without rushing any action, suggesting an ECB rate hike this month is less likely than one in December.
Markets are discounting a 13% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are sliding today, weighing on the overall market. Lumentum Holdings (LITE) is down more than -7% to lead losers in the S&P 50 and Nasdaq 100, and Sandisk (SNDK) is down more than -6%. Also, Micron Technology (MU) and Marvell Technology (MRVL) are down more than -4%, and Advanced Micro Devices (AMD), ARM Holdings (ARM), Intel (INTC), and Seagate Technology Holdings Plc (STX) are down more than 3-%. In addition, Lam Research (LRCX), KLA Corp (KLAC), Microchip Technology (MCHP), and Western Digital (WDC) are down more than -2%, and Applied Materials (AMAT), Broadcom (AVGO), and Qualcomm (QCOM) are down more than -1%.
Software stocks are climbing today, led by a +2% jump in Salesforce (CRM) to lead gainers in the Dow Jones Industrials after Bank of America Global Research double-upgraded the stock to buy from underperform with a price target of $285. Also, Workday (WDAY) is up more than +2%, and ServiceNow (NOW), Intuit (INTU), and Microsoft (MSFT) are up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude oil up more than +2%. Diamondback Energy (FANG) is up more than +2%, and APA Corp (APA), Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), ExxonMobil Holdings (XOM), and Occidental Petroleum (OXY) are up more than +1%.
IonQ (IONQ) is down more than -8% after agreeing to buy Elisity Inc. for as much as $1.3 billion in an all-stock transaction.
Chipotle Mexican Grill (CMG) is down more than -4% after Starbucks said it has no plans to acquire the company.
Enact Holdings (ACT) is down more than -1% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $44.
Adobe (ADBE) is down more than -1% after Wells Fargo Securities double-downgraded the stock to underweight from overweight with a price target of $225.
First Tracks Biotherapeutics (TRAX) is up more than +6% after reporting topline results from an early-stage trial of its experimental therapy for celiac disease.
AST SpaceMobile (ASTS) is up more than +4% after Deutsche Bank upgraded the stock to buy from hold with a price target of $93.
Biogen (BIIB) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral, with a price target of $300.
Earnings Reports (10/12/2026)
Liberty Live Holdings Inc (LLYVA) and SR Bancorp Inc (SRBK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured by Rising Crude Prices and Chipmaker Weakness

Key Points
The geopolitical conflict in the Middle East has upended the global energy market.
Enterprise Products Partners has a huge 6% yield, and oil prices aren't a big factor in its business.
Chevron has a 3.4% yield and provides diversified exposure to the entire energy value chain.
The geopolitical conflict in the Middle East has shown that, despite all the talk about clean energy, oil and natural gas remain incredibly important to the world's normal functioning. This isn't likely to change anytime soon, which is why most investors, even conservative ones, should have some exposure to the energy sector. But the high oil prices resulting from the conflict in the Middle East mean that dividend investors should tread with caution.
That said, Enterprise Products Partners (NYSE: EPD) and its 6% yield and Chevron (NYSE: CVX) and its 3.4% yield are two great energy options to choose from. Here's why, starting with the highest yield.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Enterprise Products Partners sidesteps commodity risk
Clearly, the big story for dividend investors with Enerterprise Products Partners is its lofty 6% yield. That yield is backed by 28 annual distribution increases, which is basically as long as the master limited partnership (MLP) has been publicly traded. But these two facts are, honestly, just the tip of the iceberg for this North American midstream giant.
The real reason why dividend investors will appreciate Enterprise is that its business is driven by volume, not commodity prices. It charges customers fees for access to its massive collection of North American energy infrastructure, including pipelines, storage, and transportation assets. The price of the commodities it moves is far less important to its financial results than the demand for those commodities. And as the conflict in the Middle East has shown, demand for oil and natural gas remains very strong.
The caveat here is that Enterprise is a slow-growing business. While the MLP has $6.5 billion in capital investments lined up, investors should only expect low- to mid-single-digit distribution growth. However, given the lofty starting yield, that probably won't bother investors trying to maximize the income their portfolios generate. As of this writing, you can buy roughly a dozen shares for $500.
Chevron is a balanced way to get some direct energy exposure
Some investors may actually want more direct exposure to the energy sector. An energy producer (an upstream company) would be a pure play, but also the most exposed to the swings in energy prices. Oil prices are high today, but history shows they are likely to fall at some point. Which is why a stock like Chevron, with its well-above-market 3.4% yield, could be the better solution. A $500 investment will let you buy two shares.
Chevron operates in the upstream, producing oil and natural gas. So it provides exposure to commodity prices. However, it also operates in the midstream (where Enterprise is focused) and the downstream (chemicals and refining). The broad exposure across the entire energy value chain helps soften the frequent, often dramatic swings in oil prices. But there's more to like than just the business structure.
Chevron has long operated in a conservative manner. Notably, it has one of the strongest balance sheets in its peer group, with a debt-to-equity ratio of roughly 0.2x. That gives the company the leeway to take on debt during energy downturns to help support its business and its dividend. If you are looking for a reliable income stream, Chevron's 38-year streak of annual dividend increases demonstrates that its conservative business approach can withstand oil market swings while continuing to reward dividend investors.
Two reliable income choices from the energy patch
Enterprise is a solid high-yield option right now. For Chevron, you could probably get a better entry point by waiting for an oil market downturn. However, it is a good business across the entire energy cycle, so if you want to buy an energy stock now, it is worth considering. Either one you pick will allow you to generate an above-market income stream from a sector that remains vital to the normal functioning of the world.
Should you buy stock in Enterprise Products Partners right now?
Before you buy stock in Enterprise Products Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 12, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Got $500? 2 No-Brainer Energy Dividend Stocks to Buy Right Now, Starting With a Huge 6% Yield.

Key Points
Chevron has demonstrated a consistent interest in rewarding shareholders.
Management has raised the dividend at a 7% CAGR for the first 25 years of this century.
The company's breakeven point for dividends and capital expenditures is below $50 per barrel of Brent crude.
From artificial intelligence (AI) leaders to consumer goods stalwarts, several stocks are shining brightly on my radar these days. The rub, however, is that I'm currently looking to fortify my emergency fund rather than add new positions to my portfolio.
But if I did have the funds for a shopping spree, Chevron (NYSE: CVX) would be a stock high on my priority list for one remarkable reason.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Almost 4 decades of dedication to driving dividends higher
As an oil supermajor, Chevron has a robust presence throughout the energy value chain. However, it's not merely the company's expansive operations that I find alluring.
For 39 consecutive years, Chevron has raised its dividend, putting it in the company of only a few other companies that have demonstrated such a lengthy commitment to rewarding shareholders. The feat becomes even more impressive when one recognizes the challenges management faces in balancing capital allocation between rising dividends and growth projects (which are especially capital-intensive), all amid enduring volatility in energy prices.
And it's not as if the dividend raises have been nominal. For the 25 years ending in 2025, Chevron hiked its dividend at an impressive 7% compound annual growth rate (CAGR).
The allure of Chevron's success in boosting its dividend is compounded by the fact that the company is well-positioned to extend the streak even further. During an August investor presentation, Chevron management noted that from 2026 through 2030, the company's breakeven on dividends and capital expenditures is less than $50 per barrel of Brent crude oil.
Although I can't click the buy button on Chevron stock right now, that's not to say it's not still at the top of my buy list. While I have a niche of my portfolio carved out for growth stocks, I'm also committed to strengthening my passive income flow with more conservative options like Chevron stock.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.

I'd Buy Chevron Stock Without Any Hesitation Right Now. Here's the Reason Why.

Key Points
Chevron provides massive global scale and a strong balance sheet supported by integrated operations.
Occidental Petroleum focuses on high-margin domestic production and aggressive investments in carbon capture technology.
Which energy giant is the better choice for your portfolio in 2026?
As global energy markets shift, choosing between an integrated titan and a focused domestic producer remains a challenge. Is Chevron (NYSE:CVX) or Occidental Petroleum (NYSE:OXY) the better buy for your portfolio today?
Chevron provides stability through its massive global footprint, which includes refining and marketing segments. Occidental Petroleum focuses more on exploration and production in the United States, while also placing a large bet on carbon capture technologies. Both companies represent different ways to play the energy cycle, making them popular choices for investors seeking oil exposure.
The case for Chevron
Chevron sells crude oil, natural gas, and refined products to a vast array of industrial and retail customers across the globe. It manages major assets such as the Gorgon LNG project in Australia and the Leviathan field in Israel to ensure long-term energy supplies. As a titan among renewable energy stocks and traditional fossil fuel producers, the company also markets fuels through approximately 13,800 branded service stations.
In FY 2025, revenue reached nearly $184.4 billion, down from approximately $193.4 billion reported in the previous year. Despite lower top-line results, the company generated net income of roughly $12.3 billion for the period. This performance resulted in a net margin of close to 6.7%, which is a financial metric that measures how much profit a company keeps from every dollar of sales.
As of its December 2025 balance sheet, the company's debt-to-equity ratio is approximately 0.3x. This ratio compares total debt to shareholder equity to show how much a business relies on borrowing to fund its operations. The current ratio is about 1.2x, while free cash flow reached nearly $16.6 billion, representing the cash left over after accounting for necessary capital projects.
The case for Occidental Petroleum
Occidental Petroleum operates as an international explorer and producer with operations heavily focused on the Permian Basin and the Gulf of Mexico. It utilizes its midstream and marketing segment to optimize the value of its assets, including equity investments in Western Midstream Partners (NYSE:WES). The company recently streamlined its focus toward its core energy production by selling its chemicals business in early 2026.
In FY 2025, revenue reached nearly $21.6 billion, which reflected a significant decline from the $27.1 billion generated in the prior fiscal year. The company reported net income of approximately $2.4 billion for the 2025 fiscal period. This led to a net margin of about 11%, indicating the percentage of revenue remaining after the company accounts for all of its operating and non-operating expenses.
Based on its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.7x. The current ratio is approximately 0.9x, indicating that its current assets are slightly lower than its current liabilities due within one year. During the fiscal year, the company generated free cash flow of nearly $4.1 billion, which is the cash remaining after accounting for mandatory investments in its business projects.
Risk profile comparison
Chevron faces significant risks from commodity price volatility, as its earnings are heavily tied to the fluctuating prices of crude oil and natural gas. Operational hazards such as well blowouts or pipeline ruptures can lead to significant environmental liabilities that are not always covered by insurance. Additionally, the company must successfully integrate assets from its acquisition of Hess Midstream (NYSE:HESM) to meet its production and synergy goals.
Occidental Petroleum is highly exposed to price drops because it maintains limited hedging activities to protect its revenue from market volatility. Its low-carbon strategy, which includes heavy investments in direct air capture, faces significant technological risks and uncertain commercial viability in new markets. The company also carries higher debt levels than some of its peers, which might limit its financial flexibility if interest rates rise or economic conditions worsen.
Valuation comparison
Occidental Petroleum appears cheaper based on its Forward P/E, while Chevron trades at a lower P/S ratio, which measures price against sales over the past twelve months.
Metric
Chevron
Occidental Petroleum
Forward P/E
12.8x
9.3x
P/S ratio
2.0x
2.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
When comparing Occidental Petroleum (OXY) and Chevron (CVX), investors should take a few key factors into consideration. Let's have a look at them and see what that tells us about each stock.
First, there's valuation. This is crucial for energy stocks, which tend to have a lower valuation compared with the broader stock market. Forward P/E is an estimate-based metric, which compares current price to forward earnings estimates. On this basis, OXY is the cheaper stock, holding a 9.3x forward P/E versus a 12.8x forward P/E for Chevron. However, on another key valuation metric, price-to-sales (P/S), the roles are reversed. Chevron has a P/S multiple of 2.0x, while OXY's P/S ratio is 2.3x. Therefore, valuation is a push in my book.
Another factor to consider is income potential. Chevron boasts a dividend yield of 3.5%, while OXY's dividend yield is around 2%. What's more, CVX has raised its divided for 39 consecutive years. OXY has also raised its dividend for several years running, but its streak is far shorter at only four consecutive years. For income-oriented investors, CVX wins the head-to-head matchup on both size of its payout and consistency of its dividend hikes.
In summary, CVX comes out on top for me, since it wins the income matchup cleanly. Value-seeking investors can still make a solid case for OXY, particularly when examining the growth profiles of the two companies. However, in my view, the size and stability of Chevron's increasing dividend payments outweigh that consideration.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Chevron vs. Occidental Petroleum: Which Energy Stock Is a Better Buy in 2026?

Key Points
The energy sector is known for volatility, with oil prices swinging between high and low levels.
The world's largest energy companies build financially strong businesses to weather the swings.
Even the balance sheets of smaller, pure-play drillers are benefiting from high oil prices.
Oil is a volatile commodity, a fact you have to accept if you are going to buy an energy stock like Chevron (NYSE: CVX), ExxonMobil (NYSE: XOM), Devon Energy (NYSE: DVN), or Diamondback Energy (NASDAQ: FANG). However, oil volatility can be both a negative and a positive. Right now, high oil prices are helping to strengthen energy company balance sheets. Here's what that means for investors in 2027.
Oil goes up, and oil goes down
In 2020, during the coronavirus pandemic, oil prices cratered amid the economic shutdown used to slow the spread of the illness. It was a difficult time for the world, but energy companies were particularly hard hit. At one point, oil prices in the United States fell below zero. There were technical reasons for the brief and shocking decline, but it shows just how difficult a period it was for energy companies.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
To support their businesses during that period, oil companies across the industry drew on their balance sheets. Drilling focused Devon Energy's debt-to-equity ratio doubled in 2020. Peer Diamondback Energy's debt-to-equity ratio increased by nearly 80% before peaking in early 2021. And Exxon and Chevron, two of the world's largest and most diversified energy companies, saw their debt-to-equity ratios increase by roughly 70% in 2020.
But today, with oil prices at lofty levels, the story is completely different. Debt-to-equity ratios are the lowest they have been in years. Exxon and Chevron are both below 0.2x, which would be a strong number for any business. Devon is slightly below 0.3x, and Diamondback Energy is just a touch above. These companies, and many more in the energy patch, are in a very strong financial position.
What will energy companies do with their strong balance sheets?
For companies like Exxon and Chevron, the current strength of their balance sheets won't really change their business approach. They both focus on the long-term. They may increase stock buybacks and, perhaps, pull forward some capital investment plans, but they understand the volatility of energy prices.
Soon enough, they are likely to need to deal with low oil prices again. When that happens, having strong balance sheets will allow Exxon and Chevron to both support their businesses and dividends through the downturn. Notably, Exxon's dividend has been increased annually for 43 years, with Chevron's streak at 38 years. For income-focused investors looking for direct oil exposure, either one would be a great choice, though Chevron has the higher yield right now at 3.5%. Exxon's yield is 2.6%.
Devon Energy and Diamondback Energy probably require a bit more watching. These two U.S.-based energy producers have long and successful operating histories, so it is unlikely they will do anything rash. However, the extra cash they are generating today may be used to increase production to capitalize on the current price environment. Acquisitions could also be in the cards. However, both have a history of paying out special dividends during periods of elevated oil prices, with the goal of sharing their success with shareholders. In recent years, deleveraging has been a greater focus, but as leverage has fallen, that capital allocation framework may shift back toward returning cash to shareholders. That could also take the form of stock buybacks, so investors probably shouldn't get their hopes up on the dividend front.
This energy swing is entirely normal
The big picture here is that high oil prices are likely to be temporary, and energy companies know it. The first thing an energy company does in this situation is often to strengthen the balance sheet. But that's largely in preparation for the next oil downturn, which may come before the company has a chance to do anything else with the cash it is generating. While acquisitions, rising dividends, and increased stock buybacks may follow along for the ride, those aren't things that you can really count on.
So the real takeaway here is that oil companies like Exxon, Chevron, Devon, and Diamondback, with increasingly strong balance sheets, will enter 2027 with the financial strength needed to survive the next energy downturn. Anything after that is really icing on the cake.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.

Chevron Corporation

Options Strategies