CVX Secures PPA to Support Gas-to-Power Project Kilby

Research evidence excerpt

CVX Secures PPA to Support Gas-to-Power Project Kilby

TD Cowen Chevron

Global Research June 22, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Integrated Oils & Major Producers:

Our valuation methodology includes two approaches: intrinsic value approach and a relative

value approach. Our fair value calculations utilize discounted cash flow (DCF) methodology

as well our segment sum-of-the-parts (SOTP) analysis. We also base our intrinsic valuation on

disclosed reserve/resource/other asset information and comparable asset transactions. Our

relative value approach relies upon P/E, P/CF and EV/EBITDA as the most relevant metrics.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

The global macro economy poses the biggest risk as demand for commodities is highly

dependent on economic growth. A significant downturn in global economic conditions may

materially affect results. Volatility in commodity prices can significantly impact profitability.

Other risks include: execution risks, environmental risks, regulatory risks, operational risks (oil

spills, accidents, strikes, and weather related events), exploration/development/technical risks,

currency risks and financing risks.

Primary Investment Risks – Upstream

The oil and gas exploration and production industry is one of the most volatile and

unpredictable industries in the economy. The industry’s key investment risk is its exposure to oil

and gas prices, whose price and volatility are affected by expectations of the strength of the