Chevron Trumps Occidental in Oil Stock Showdown

Chevron and Occidental Petroleum are two major oil companies that offer different risk-and-reward profiles for investors. Chevron is an integrated giant with a highly diversified global business model and exceptionally strong balance sheet, while Occidental Petroleum is a more focused explorer that's aggressively expanding its carbon management technologies alongside domestic oil production.

Chevron generates revenue from exploration, drilling, refining, and marketing its own fuel products. In FY 2025, revenue reached nearly $184.4 billion, 4.6% lower than the previous year. Net income was approximately $12.4 billion for the period, resulting in a net margin of about 6.7%. Chevron's debt-to-equity ratio is around 0.3x, and its current ratio is roughly 1.2x.

Occidental Petroleum, on the other hand, focuses heavily on oil and gas exploration while building a massive presence in carbon management. The company generated revenue of approximately $21.6 billion during FY 2025, which was 20.3% lower year over year. Net income for the fiscal year was roughly $2.4 billion, yielding a net margin of about 11%. Occidental's debt-to-equity ratio is around 0.7x.

Chevron projects 10% annualized growth in earnings per share and adjusted free cash flows through 2030 at a Brent crude oil price of $70 per barrel. The company has committed to dividends and regular share repurchases, increasing dividends for 39 consecutive years. Occidental Petroleum is strengthening its balance sheet by paying off debt, with Berkshire Hathaway holding a significant stake in the company.