Chevron Corporation, a world-leading energy company

In the 1860s, inspired by the Gold Rush, prospectors sought a new kind of treasure: oil. Early efforts were unsuccessful until 1876 when California Star Oil Works, a predecessor of Chevron, struck oil at Pico Canyon, marking California’s entry into the oil-producing market. The success spurred rapid development, including the establishment of a refinery, pipelines, and California’s first steel tanker, positioning Pacific Coast Oil Co. (PCO), which acquired California Star, for expansion.

In 1900, PCO was acquired by Standard Oil Co. (New Jersey) but retained its name until it merged with Standard Oil Co. (Iowa) in 1906 to form Standard Oil Co. (California).

The company expanded aggressively, building major refineries, pipelines, and initiating the world’s first service station in Seattle. By 1910, Standard struck oil in Kern County, further solidifying its presence in the burgeoning oil industry.

After the 1911 Supreme Court decision to break up Standard Oil, Standard Oil Co. (California) became an independent entity and continued its expansion, discovering vast oil reserves in Southern California. By 1919, it had become the leading oil producer in California. The company’s service station network grew rapidly, and it began exploring international markets, including groundbreaking projects in the Middle East.

In 1932, Standard Oil Co. (California) made its first international discovery in Bahrain, establishing itself as a global player. The company formed a partnership with Texaco, creating Caltex, which expanded its operations in Africa and Asia.

Despite challenges during the Great Depression and World War II, the company continued to innovate, becoming a key supplier of aviation fuel and petrochemical products.

Post-World War II, the company, now known as Socal, expanded both domestically and internationally. It pioneered new petrochemical products, invested in refinery modernisation, and acquired strategic assets to strengthen its position.

By the 1980s, Socal became Chevron Corporation, merging with Gulf Oil in 1984, in what was then the largest corporate merger in history.

In the 1990s and 2000s, Chevron shifted its focus toward international exploration, forming key partnerships like the one with Kazakhstan for the development of the Tengiz Field. Further solidifying its global presence, Chevron acquired Unocal in 2005, enhancing its portfolio in the Asia-Pacific and U.S. Gulf regions, and positioning itself as a leading energy provider through technological innovation and strategic growth.

Stock listing, shareholding, and market capitalisation

Chevron common stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol “CVX”. The company’s market capitalisation as of 18 October 2024 is valued at US$275.71 billion, with revenue of US$195.15 billion, and a net income of US$18.72 billion.

According to Yahoo Finance, as of 30 June 2024, the company’s major institutional stockholders include Vanguard Group Inc. which holds the largest share of 158.7 million, representing 8.68% of total shares, with a value of approximately $23.92 billion.

Following closely is State Street Corporation, with 158.23 million shares (8.65%) valued at $23.85 billion. Blackrock Inc. comes next with 127.83 million shares, accounting for 6.99% and valued at $19.27 billion. Berkshire Hathaway holds 118.61 million shares, or 6.49%, valued at $17.88 billion.

Morgan Stanley and Geode Capital Management hold 36.17 million (1.98%) and 35.96 million (1.97%) shares respectively, valued at over $5.4 billion each. Bank of America holds 31.65 million shares (1.73%) worth $4.77 billion, while JP Morgan Chase & Company has 29.95 million shares (1.64%) worth $4.51 billion.

Charles Schwab Investment Management owns 27.9 million shares (1.53%), valued at $4.21 billion, and Norges Bank Investment Management rounds out the list with 20.34 million shares (1.11%) worth $3.07 billion.

Chevron reports 2^a. 2024 quarter results

On 2 August 2024, Chevron announced its second-quarter 2024 results, reporting earnings of $4.4 billion, or $2.43 per diluted share, compared to $6.0 billion, or $3.20 per diluted share, in the same quarter of 2023. Adjusted earnings for the quarter were $4.7 billion, or $2.55 per diluted share, down from $5.8 billion, or $3.08 per diluted share, in the previous year. Foreign currency effects reduced earnings by $243 million.

Chevron achieved record production in the Permian Basin, contributing to an 11% increase in worldwide production year-over-year. The company also returned $6 billion in cash to shareholders during the quarter, bringing its total shareholder returns to over $50 billion in the past two years.

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