From The Motley Fool · Leo Sun · · 1m 10s
Chevron vs ExxonMobil: Better Oil Stock
Chevron's higher oil price exposure and faster growth make it the better oil stock choice.
In brief
Chevron's higher oil price exposure and faster growth make it the better oil stock choice. Chevron is the better oil stock for investors seeking higher returns during oil price spikes due to its upstream focus and faster growth. Originally reported by The Motley Fool.
Chevron and ExxonMobil: Oil Giants
Chevron (CVX) and ExxonMobil (XOM) are two of the world's largest integrated energy companies with upstream exploration, midstream pipelines, and downstream refineries.
Stock Performance Comparison
Chevron's stock rallied 45% over 12 months while ExxonMobil's rose 58% as oil prices increased.
Upstream Business Focus
Chevron generates 80% of profits from upstream businesses versus ExxonMobil's 70%.
Downstream Business Differences
ExxonMobil's downstream business produces petrochemicals while Chevron's has minimal exposure to that market.
Breakeven Price Comparison
Brent crude oil is at $110 per barrel while Chevron's breakeven is $50 and ExxonMobil's is $35.
Dividend Performance
Chevron has raised dividends for 39 years versus ExxonMobil's 43 years with higher forward yield of 3.2%.
Future Growth Prospects
Chevron's EPS is expected to grow 26% CAGR from 2025-2028 through Guyana expansion and Permian Basin production.
What it means
Chevron is the better oil stock for investors seeking higher returns during oil price spikes due to its upstream focus and faster growth.
