Chevron Net Worth: Market Cap, Stock Price, and Oil Spills

Chevron Corporation is among the biggest publicly traded oil and gas companies globally. The company is fully integrated, working in all areas of energy from oil production to refining and marketing through its upstream and downstream segments. Since it started in 1879, Chevron’s net worth has grown, showing skill and value creation in a very cyclical industry. As of August 2024, Chevron has a net worth of $264.59 billion and offers useful strategic insights to business owners and potential opportunities for investors.

At Business2Community, we’ve consulted various sources to provide a comprehensive overview of Chevron’s history and net worth through the decades. Keep reading to discover the energy giant’s key milestones, revenue, controversies, and more.

What is Chevron’s Net Worth?

Chevron’s net worth, or market cap was $264.59 billion as of August 2024. This is based on a Chevron stock price of $144.67.

Chevron typically releases its end-of-year financial results in February each year, providing a detailed look at its financial performance for the previous fiscal year.

Overall, since December 1, 1998, Chevron’s market capitalization has experienced a notable 360% increase, climbing from approximately $53.46 billion.

Since Chevron first started trading on the New York Stock Exchange (NYSE) in 1921, both its stock price and value have increased significantly. Before the 2000s, the company had already hit several notable milestones such as a share price of $20 in August 1990 and a net worth of $50 billion in 1997.

By 2005, the company’s stock price had surpassed $45 and its net worth was over $110 billion. A decade later, Chevron’s net worth had surged to $210 billion, making it the world’s third-largest publicly traded energy company behind Exxon Mobil and Royal Dutch Shell.

Despite Chevron’s net worth hitting lows of $150 billion in 2020 due to the pandemic, its healthy balance sheet allowed it to bounce back, reaching a net worth of over $347 billion by December 2022.

The company’s stock performance was also noteworthy. From January 2021 to July 2024, shares climbed from $85 to $154, representing an 81% increase. During this period, the stock reached a peak closing price of $176.99 on January 26, 2023. This growth outpaced the S&P 500, which saw an increase of about 50% over the same 3-year period.

As of August 13, 2024, the average price target for Chevron stock was $180.27, with a high of $204 and a low of $154. This was 25.24% higher than the current price of $143.92 and the consensus rating was “moderate buy”.

Chevron’s Revenue

Chevron’s revenue surpassed $1 billion for the first time in 1951. Its revenue growth continued, reaching $2 billion in 1961 and climbing to almost $6 billion by 1969.

By 1990, Chevron’s revenue was $41.5 billion, with earnings of over $2 billion. Profitability continued to increase with the company hitting a record $3.3 billion in net income in 1997.

Throughout the early 00s, the company’s revenue consistently surpassed the $100 billion mark, climbing to $200 billion by 2005.

However, over the next decade, Chevron’s revenue and profitability fluctuated significantly. First, the global oil price collapse that began in 2014 saw the company’s net income hit a low of $4.59 billion in 2015. Revenue fell even further, resulting in a net loss of $500 million in 2016.

Then in 2020, following a sharp decline in global oil and gas demand brought on by the pandemic, Chevron’s revenue plummeted to $95 billion and the company suffered a loss of $5.5 billion.

Fueled by the Russia-Ukraine conflict and subsequent supply disruptions, energy prices rebounded in 2022. As a result, Chevron recorded the most profitable year in its history with profits of $35 billion on revenue of $246 billion.

As energy prices moderated, and Chevron faced higher operating costs in 2023, its financial performance dipped slightly.

Despite the decline, the company remained highly profitable, with a net income of $21 billion on revenue of $201 billion.

Chevron’s Dividend History

Despite operating in the highly cyclical oil industry, Chevron has a long history of paying dividends to stockholders. Chevron pays dividends every quarter and has increased its dividend for the previous 37 consecutive years.

Ranked as the third-highest-yielding stock in the Dow Jones Industrial Average, Chevron boasts a dividend payout ratio of 59.98%, an annual dividend of $6.52 per share, and a yield of 4.55%

Chevron has had 6 stock splits since 1951. In 2023, Chevron announced that it planned to buy back $75 billion of its shares and hike its dividend. That year, By the end of 2023, the company had spent $14.9 billion on stock buybacks (32% more than in 2022) and $11.3 billion on dividends (3% higher than in 2022).

Who Owns Chevron?

As a publicly traded company, Chevron is owned by various shareholders. The largest shareholder in the most recent financial reporting is Vanguard Group with an 8.68% ownership stake. Other major shareholders include Blackrock (6.99%), State Street Corporation (6.73%) and Berkshire Hathaway (6.72%).

Chevron’s ownership history can be traced back to 1879 when Pacific Coast Oil Co (PCO) was formed.

In 1900, PCO was acquired by Standard Oil. 11 years later, PCO became an independent company when the US Supreme Court dissolved Standard Oil under the Sherman Antitrust Act.

PCO adopted a new corporate structure and took on the name Standard Oil Co. of California or Socal in 1926.

Following a landmark merger with Gulf Oil in 1984, Socal changed its legal name to Chevron Corporation, and the energy giant as we know it today, emerged.

Who is the Chevron CEO?

The CEO of Chevron is Michael K. Wirth. Wirth joined Chevron in 1982 and held various leadership positions before becoming CEO in 2018.

With his diverse experience within Chevron as well as his in-depth understanding of the company’s operations, Wirth has prioritized:

• Expanding Chevron’s traditional energy business.
• Investing in technologies to meet the demand for lower carbon energy solutions.
• Maximizing shareholder value.

Following Wirth’s delivery of key financial priorities such as increasing shareholder returns and eliminating debt, the CEO was compensated a total of $26.5 million in 2023, a 12.2% increase from 2022.

In 2021, shareholder pressure group Majority Action reached out to shareholders including Vanguard and Blackrock, urging them to not vote for Wirth or lead director Ronald K Sugar to have their tenures extended. Majority Action pointed out that Chevron had no plans for net zero or to cap global warming at +1.5°. While the pair retained their respective positions, a motion successfully passed at the same AGM calling for the company to cut its Scope 3 emissions.

The same demands to sack the pair were made the following year but again were unsuccessful.

Chevron’s Company History

Chevron Corporation is a multinational energy company with a diverse portfolio spanning the global energy sector. Its operations are divided into two main segments: Upstream and Downstream.

The Upstream segment consists of the exploration, development, and production of crude oil and natural gas. It’s also responsible for liquefaction, transportation, and regasification associated with liquefied natural gas (LNG) operations.

The Downstream segment focuses on refining crude oil into petroleum products. It markets crude oil, refined products, fuel, and lubricant additives. Additionally, it manufactures and markets renewable fuels and commodity petrochemicals.

Chevron also provides administrative, financial management, and technology support for its energy and chemical operations. Below we track the company’s 145-year journey to becoming one of the world’s largest energy companies.

1879 – 1911: Chevron’s Early Years

During California’s oil boom, Pacific Coast Oil Co. (PCO) was founded in 1879. PCO expanded rapidly, building refineries, pipelines, and tankers. In 1878, Standard Oil Company entered the region and eventually acquired PCO in 1900. Expansion efforts continued and Richmond Refinery was built in 1902.

After consolidating as Standard Oil Co. (California) in 1906, the company increased its marketing efforts, doubling gasoline sales between 1906 and 1910.

In 1909, the company began its own oil exploration, a move that paid off when Standard Oil Co. (California) became an independent entity in 1911. By the end of 1911, the company had ramped up its refining capacity and expanded its natural gas operations in the San Joaquin Valley.

Standard Oil Co. (California) prioritized financial discipline, its product line, marketing, refining systems, and pipeline network. Within four years, it had climbed from sixth place to first among California’s oil producers. It had also ventured into international markets with export sales rising from 14% to 28% of the business during the period.

By 1919, the company’s production had grown to more than 25% of the state’s total. In 1926, the company boosted its production capacity by 50% when it acquired Pacific Oil Co. This achievement was marked by the adoption of a new corporate structure name – Standard Oil Co. of California, or Socal.

1912-1979: Chevron’s Global Expansion

After World War I, Socal offset the Great Depression’s impact on its earnings by launching new products such as Standard Gasoline, DELO oils, and RPM Motor Oil. It also took its search for oil reserves international, making its first discovery in 1932.

In 1936, Socal partnered with Texaco, creating Caltex. The aim was to combine Socal’s Middle Eastern production with Texaco’s marketing network in Africa and Asia. The company further negotiated exploration rights in Saudi Arabia, leading to a major oil discovery at Dammam No. 7 in 1938.

Throughout World War II, Socal became a key supplier for the Allies. The company also spent over $63 million to expand its production of aviation fuel and petrochemicals.

In the years following World War II, Chevron embarked on an aggressive exploration program. This led to key discoveries in the Gulf of Mexico, Canada, Saudi Arabia, and Indonesia. By 1949, Socal was the largest Gulf of Mexico oil producer. In 1951, the company expanded into petrochemicals, forming Oronite Chemical Co. As a result, Chevron’s revenue grew rapidly, hitting highs of $6 billion by 1970.

Despite the political challenges of the 70s which resulted in oil embargoes and asset nationalizations, Socal achieved significant milestones. This included major discoveries such as the West Pembina Field in Alberta, Canada, and the Ninian Field in the United Kingdom North Sea.

1980-2001: Chevron’s Transformation and Mergers

By the start of the 80s, Socal had over 50 refineries, a production capacity of around 3 million barrels per day, and the third-largest fleet among oil companies in the world. The company embarked on global expansion, making major discoveries and large acquisitions.

Notably, on March 5, 1984, Socal merged with Gulf Oil Corp. in a record corporate deal worth $13.3 billion. The company also updated its legal name to Chevron Corporation. As the largest refiner in the US, Chevron dominated the gas liquids market, raking in a net income of $1.53 billion for the year.

To improve financial performance and compete more effectively, Chevron shifted its exploration and production focus to international opportunities in the 1990s.

By 1994, the company was allocating up to 75% of its capital spending on its international operations while relying on a steady cash flow of over $1 billion from a core group of approximately 400 oil and gas fields concentrated in California, Texas, the Rocky Mountains and the Gulf of Mexico. These efforts paid off, with the company realizing record revenue and profits of over $3 billion in 1997.

The company merged with Texaco to form ChevronTexaco Corp. in 2001, and with its significant reserves and refining capacity, became the second-largest energy company in the US.

2002-2019: Chevron’s Strategic Growth

Between 2002 and 2007, Chevron earned $72 billion and reinvested it into developing new energy supplies. During this time, the company also averaged a 42% success rate for exploration wells, adding 1 billion barrels to its resource base.

In 2005, the company changed its name to Chevron Corp. That same year, the company acquired Unocal Corp for $18.5 billion, strengthening its production portfolio in the Asia-Pacific, the US Gulf of Mexico, and the Caspian region. Consequently, the company’s profits more than tripled to $14.1 billion.

By 2009, the company had successfully leveraged its technology and management expertise to scale up its production volumes. Following global restructuring in 2015, Chevron’s Downstream segment reported its best year on record, with $7.6 billion in earnings.

As part of its plan to prioritize long-term growth and create significant shareholder value, Chevron invested in major capital projects, including the development of LNG projects in Australia and shale oil and gas resources in the Permian Basin. These strategic efforts were reflected in the significant financial improvements between 2017 and 2018.

Not only did annual revenue increase by 18% to a three-year high of $167 billion, but net income surged by 61% to a high of $14.82 billion over the same period.

In 2019, Chevron’s Upstream business delivered record production even as the company streamlined its operational and geographic footprint. To enhance its resilience and ability to compete in any price environment, Chevron focused on driving efficiencies, evolving its portfolio, and optimizing its value chain.

2020-Present: Chevron’s Post-Pandemic Resilience

As market conditions deteriorated in 2020, Chevron:

• Reduced capital spending by 35% and slashed operating costs.
• Simplified and modernized its operations.
• Integrated teams, processes, and value chains across its business units and locations.
• Implemented digital solutions.

The company also expanded its portfolio strategically, acquiring Noble Energy for $13 billion in 2020, Renewable Energy Group for $3.15 billion in 2022, and PDC Energy for $7.6 billion in 2023.

Along with record financial performance in 2022, Chevron’s portfolio delivered annual production of 3.1 million barrels of oil equivalent per day in 2023 – the highest in its history. The company also maintained its financial strength with a net debt ratio of 7.3% and eliminated more than $4 billion of debt, including all the debt assumed in its acquisition of PDC.

In August 2024, Chevron announced that it was relocating its headquarters from San Ramon, California to Houston, Texas after 145 years. The announcement coincided with the company’s underwhelming second-quarter results as well as a restructuring plan to boost performance and address recent challenges.

Chevron Controversies

Chevron has faced widespread criticism due to its contribution to carbon emissions, oil spills, environmental damage, and human rights abuses around the world.

In 2021, a report determined that Chevron had 70 ongoing litigation cases in 31 countries. It was further revealed that of the $50.5 billion the company owed in fines, court judgments, and settlements, only 0.006% or $286 million had been paid.

The largest of these judgments dates back to a 2003 case filed by thousands of indigenous residents of Ecuador. The company was accused of dumping billions of gallons of toxic waste, causing widespread health issues within communities and severe environmental damage.

In 2011, an Ecuadorian court ordered Chevron to pay $18 billion in damages, later reduced to $9.5 billion. However, Chevron fought this ruling, and in March 2014, a US court ruled that the judgment was the result of fraud and racketeering activity, finding it unenforceable. In the aftermath, the Ecuadorian plaintiffs’ lead attorney, Steven Donziger was disbarred and imprisoned for a vacuous “contempt of court” charge after refusing to provide his laptop, which he said contained privileged information protected under attorney-client privilege.

Donziger spent an unprecedented 993 days in house arrest, not to mention 45 days in prison, for the charge, sparking outrage from activists who argued that the charge was little more than retribution for standing up to big business. For context, contempt of court charges essentially never lead to a sentence longer than 6 months let alone over 2 and a half years.

To date, Chevron has not paid any of the damages awarded in the Ecuadorian court, and the case remains a contentious point in discussions around corporate accountability and environmental justice.

In 2002, the Angolan government fined Chevron for spilling $2 million worth of oil, damaging the coastline and forcing fishermen to stop working. Investigations showed that the spill was down to obsolete piping. Thirteen years later, there was a similar issue with fishermen demanding compensation for lost working days of $2,000 per day, claiming oil spills in Angolan waters by the company prevented them from bringing in a catch.

In June 2024, the US Supreme Court struck down a 1984 ruling involving Chevron, which had established the precedent known as “Chevron deference” or the “Chevron Doctrine”. The Court concluded that the federal judiciary’s 40-year practice of deferring to agencies’ reasonable interpretations of ambiguous federal laws was incompatible with the courts’ fundamental duty to interpret the law.

The decision presents new opportunities for regulated industries to challenge regulators and shifts authority back to the judiciary and Congress. Experts argue that this ruling will make it more challenging for agencies to act, particularly on emerging and rapidly evolving issues such as climate change.

For Chevron itself, this ruling could have significant implications. The company may now have more avenues to challenge regulatory decisions that affect its operations. However, it also means that Chevron, like other companies in the energy sector, may face a more uncertain regulatory landscape as courts take a more active role in interpreting environmental and energy-related laws.

What Can We Learn From Chevron?

Chevron’s vast portfolio, technology, and expertise developed over decades, form the foundation of its competitive advantage. By focusing on operational excellence, capital efficiency, and process safety, the company has positioned itself as a key player in the global energy industry.

Chevron’s dedication to maintaining profitable and resilient operations imparts key lessons. Diversification and integration have worked in its favor, allowing the company to weather economic shocks and market volatility.

Chevron has maintained a healthy balance sheet and remained disciplined even during expansion periods. This has been instrumental in its long-term stability and growth, allowing the company to endure downturns, increase profitability, and maximize shareholder value. The energy company’s approach highlights the power of good financial management and its role in driving long-term value creation.

However, its attitude towards corporate and social responsibility can’t be characterized as positive. The company has a history of legal actions against it, primarily for environmental damage, and it has continued litigation for years using its vast access to cash. While not admitting responsibility and reducing fines can help bolster the stock price, it also leads to environmental harm and a negative impression in the eyes of consumers.

Chevron’s history of stable leadership, characterized by long tenures and planned successions has proven particularly effective in navigating the highly cyclical energy industry. This underscores the importance of continuity and strategic vision in complex market environments.

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