Chevron's Bull Run Continues as Valuation Remains Undervalued
Chevron's impressive second-quarter results have sent its shares soaring by 40.02% year-to-date and 152.16% over five years.
The company set a US upstream production record of 2,077 MBOED, ran its US refineries at 97% capacity, and captured $1.5 billion in Hess savings within a year of closing.
Chevron's CEO Mike Wirth credited 'disciplined investment and strong execution' for the company's success, which includes a new 20-year AI power deal with Microsoft worth 2.67 gigawatts of power.
The company's valuation is currently at 15x forward earnings, cheaper than the S&P 500's roughly 21x to 23x.
Chevron has exceeded consensus EPS for seven consecutive quarters and has a solid track record of delivering outsized returns, with an average annual growth rate of over 10% since 2000.