The Federal Trade Commission has revisited and nullified a previous consent order concerning Chevron Corporation's (CVX, Financial) potential purchase of Hess Corporation. The original consent, finalized in January 2025, restricted Chevron from including Hess CEO John B. Hess on its board. This decision followed allegations that Mr. Hess had communicated with OPEC in a manner that could lead Chevron to align its production with OPEC's strategies. Upon its release in September 2024, the settlement faced opposition from Chairman Andrew N. Ferguson and Commissioner Melissa Holyoak, yet was passed by the former majority before President Trump took office.
In March 2025, both Chevron and Hess requested a revision of the consent order. Following a review period, the FTC concluded the complaint did not demonstrate any breach of antitrust laws, nor did it suggest the acquisition would harm competition or increase market concentration. The FTC decided that continuing the limitations on Mr. Hess's role would harm the agency's integrity. As a result, the petition to reopen and annul the order was approved unanimously with a 3-0 vote.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Chevron Corp (CVX, Financial) is $162.53 with a high estimate of $186.00 and a low estimate of $124.00. The average target implies an upside of 7.37% from the current price of $151.38. More detailed estimate data can be found on the Chevron Corp (CVX) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Chevron Corp's (CVX, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Chevron Corp (CVX, Financial) in one year is $153.56, suggesting a upside of 1.44% from the current price of $151.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Chevron Corp (CVX) Summary page.
CVX Key Business Developments
Release Date: May 02, 2025
- Earnings: $3.5 billion or $2 per share; Adjusted earnings of $3.8 billion or $2.18 per share.
- Cash Returned to Shareholders: $6.9 billion through dividends and buybacks.
- Cash Flow from Operations: $7.6 billion, excluding working capital.
- Organic CapEx: $3.5 billion, the lowest quarterly total in two years.
- Inorganic CapEx: Approximately $400 million.
- Net Debt Ratio: 14%, below the target range of 20% to 25%.
- Share Repurchases: Expected to be $2.5 billion to $3 billion in the second quarter.
- Production: First quarter oil equivalent production was flat compared to last quarter.
- Adjusted Upstream Earnings: Flat to last quarter.
- Adjusted Downstream Earnings: Higher due to improved refining margins and lower maintenance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Chevron Corp (CVX, Financial) returned $6.9 billion to shareholders through dividends and buybacks in the first quarter.
- The company achieved first oil at Ballymore in the Gulf of America, contributing to a projected increase in production to 300,000 barrels of oil equivalent per day by 2026.
- Chevron Corp (CVX) has a strong balance sheet with a net debt ratio of 14%, well below its target range of 20% to 25%.
- The company has a proven track record of managing through uncertainty in commodity cycles, with a focus on cost and capital discipline.
- Chevron Corp (CVX) is expanding its pipeline of future opportunities, adding more than 11 million net exploration acres since the start of last year.
Negative Points
- Chevron Corp (CVX) reported earnings of $3.5 billion, which included special items totaling $175 million, impacting overall profitability.
- The company issued new long-term debt of $5.5 billion in the quarter, which could impact future financial flexibility.
- Chevron Corp (CVX) has reduced its buyback guidance to the lower end of its $10 billion to $20 billion range due to current market conditions.
- The company faces challenges in the California refining market due to state policies that make it difficult to invest in the region.
- Chevron Corp (CVX) is experiencing cost pressures in its Power Ventures due to inflationary pressures in the space.
