Chevron: Current Levels Do Not Fully Capture Earnings Power And Strengthening FCF

Aristotle Capital Management77 FollowersFollow5ShareSavePlay(5min)CommentsSummaryWhile Chevron operates across the full value chain, roughly 85% of earnings are generated from upstream operations, reflecting its oil-leveraged portfolio.Chevron completed the acquisition of Hess in 2025, increasing its exposure to the Stabroek block offshore Guyana-one of the lowest-cost and highest-return oil developments globally.At current levels, we believe shares reflect conservative commodity assumptions and do not fully capture the company's normalized earnings power and strengthening FREE cash flow profile.The completion and ramp-up of the Tengiz expansion in Kazakhstan will materially increase FREE cash flow following a multi-year capital investment phase. jewhyte/iStock Editorial via Getty Images The following segment was excerpted from the Aristotle Capital's Value Equity WM Composite Portfolio Q1 2026 Commentary. Headquartered in Houston, Texas, Chevron (CVX) is one of the world's largest integrated energy companies, with operationsThis article was written byAristotle Capital Management77 FollowersFollowAristotle Capital Management is an independent/employee-owned investment management organization that specializes in equity and fixed income portfolio management for institutional and advisory clients worldwide. Note: This account is not managed or monitored by Aristotle Capital Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Aristotle Capital Management's official channels.