First Read Chevron Call Takeaways (Positive)

Research evidence excerpt

First Read Chevron Call Takeaways (Positive)

have tightened global Q4E 3.00 3.73

petrochemical markets and lifted margins. As a low-cost ethane producer, 12/26E 13.22 15.11

CPChem is particularly advantaged in the current environment, although 12/27E 11.27 12.62

management noted the durability of these benefits will depend on when regional 12/28E 12.01 12.44

trade flows normalize.

Manav Gupta

Management reiterated that the Permian remains a key value driver, but the focus Analyst

has shifted from maximizing production growth to improving efficiency, manav.gupta@ubs.com

productivity, and free cash flow. While additional growth is possible, CVX intends +1-212-713 4399

to remain disciplined and leverage technology to enhance recovery rates, extend Saumya Jain

plateau production, and expand economic inventory. Associate Analyst

saumya.jain@ubs.com

CVX highlighted a deep pipeline of long-term growth opportunities beyond the +1-212-882 0089

Permian—including Guyana, the Eastern Mediterranean, Argentina, West Africa,

Richard DeDios

exploration acreage, Venezuela, Iraq, and the TCO concession renewal—providing

Associate Analyst

significant optionality while allowing the company to prioritize the highest-return richard.dedios@ubs.com

investments. +1-212-713 8018

CVX achieved its $3 billion structural cost-reduction target ahead of schedule,

with approximately 70% of savings driven by efficiency gains; organizational

restructuring and operating model changes accounted for roughly half of those

efficiency-related benefits, with the remainder coming from technology

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Net earnings (UBS) 24,693 18,256 13,521 26,087 21,543 22,136 21,002 20,964

EPS (UBS, diluted) (US$) 13.13 10.05 7.29 13.22 11.27 12.01 11.90 12.44