Chevron Surges 1.5% Amid $100 Oil and AI-Powered Growth
Chevron stock jumped 1.5% to $213 on Wednesday as Brent crude prices broke above $100 per barrel for the first time in over six weeks.
The energy sector stood alone as the only advancing sector in the S&P 500, with escalating Middle East tensions placing supply risk and oil profits back under the spotlight.
Chevron's second-quarter results showed that when Brent prices are elevated, the company can deliver significant free cash flow, lifting production by 20% to 4.07 million barrels of oil equivalent per day while reducing debt by $8.4 billion.
The company's agreement with Microsoft to supply 2.67 gigawatts of behind-the-meter power is seen as a potent combination with the booming AI data-center demand, although Chevron's valuation leaves less room for weaker oil prices or power-project costs that run ahead of plan.