Chevron stock

Interested in investing in the energy sector? Find out everything you need to know about investing in Chevron, one of the world's largest oil companies.

Chevron Corporation is currently the second largest oil company in the United States. It is one of the biggest names in the industry, with a profile that’s attractive to investors. Read on to find out more about the company. 

History of Chevron 

Chevron's history began in 1879 in Pico Canyo, when the Pacific Coast Oil Company was formed after the discovery of oil. Over the course of its existence, the company has repeatedly changed its name through mergers and acquisitions. In 1977, the name Chevron USA Inc. was adopted after the merger of six oil and gas operations. In 2005, the company changed its name again to Chevron Corporation. 

Currently, the company has operations in the Americas, Europe, Asia-Pacific and Africa. By the end of 2019, it had nine refineries and a network of nearly 12,900 service stations under the Chevron, Texaco and Caltex brands. 

Here are a few key dates in the company's history: 

  • 1880 : Construction of the largest and most modern refinery in California. 
  • 1920 : Beginning of the search for oil reserves beyond the territory of the United States.
  • 1945 : Launch of petrochemical business lines and the manufacture of products such as plastics, plastic fabrics and detergents.
  • 1993 : Launch in Kazakhstan, becoming the first Western company to operate in this country. 

Chevron's business model

Chevron supplies a wide range of oil and gas products. Within these product segments, the company's business is divided into two segments: 

  • Upstream: exploration, production, processing, transportation, storage and marketing of products (fuel, gas, etc.).
  • Downstream: crude oil refining, marketing of crude oil and refined products, transportation of crude oil and refined products (maritime, road, pipeline, etc.). 

Chevron also supplies petrochemicals to professional customers around the world, who include Dow Chemical, Abbott Laboratories, Myers Industrie and Spark Energy. 

Chevron Corporation stock data 

  • Date of IPO : January 1, 1986 
  • Isin code : US166764105
  • Market capitalization in April 2021 : $202.87 billion 
  • Number of shares : 1,928,060,000 
  • Share price on April 28, 2021 : $105.22 
  • Annualized dividend yield : 5.02

Factors that may help Chevron's stock rise 

Chevron enjoys a strong position in the U.S. and international markets. As an oil and gas producer, it operates major wells in the United States, the Gulf of Mexico, Angola, Nigeria and Kazakhstan. As a seller, it operates approximately 19,500 retail locations in 84 countries. All of this insulates it from the risks associated with a single economic area. 

Chevron also differentiates itself from its competitors by diversifying its activities as much as possible. The group is active in oil and gas production, refining, crude oil sales, finished product sales, fuel transportation, pipeline operations, and retailing of gas and oil products. It is also involved in the exploitation and supply of alternative energies, particularly in the field of geothermal energy. 

Finally, Chevron Corporation has a bright future. Analysts predict that global energy demand could increase by one-third by 2040. With this in mind, Chevron is ready to embark on major capital projects.  

Factors that may cause Chevron's share price to fall 

It is worth noting that the Chevron group has been the subject of legal proceedings for environmental problems. This was the case in Ecuador, where the case was the subject of a 25-year judicial marathon (1993 to 2018). There is also the issue of oil spills in Angola and off the southeast coast of Brazil. There are also other legal problems such as the scandal in Nigeria, the non-compliance with the Clean Air Act in America. All these problems tarnish the group's image. 

The oil sector is strongly linked to global socio-economic conditions. For example, the price of oil fell sharply in 2020 due to the Covid-19 pandemic. This has led to a decline in its turnover.