-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CVX delivered a sizable Q1 earnings beat with adjusted EPS of $1.41 vs. consensus, though down from $2.18 Y/Y due to mark-to-market derivative losses worth $0.73 per share, in our estimation. Upstream production rose 15% Y/Y to 3.86M boe/d, largely from the Hess acquisition, but fell 4.6% sequentially due to Middle East disruptions. We believe CVX's derivative losses will unwind in coming periods, and the company outperformed chief rival XOM on international production declines (-7.8% vs. -13%). CVX maintained 2026 capex guidance of $18B-$19B. The company returned $6.0B to shareholders in Q1 ($3.5B dividends, $2.5B buybacks) versus $4.1B in oil and gas development. At the midpoint of CVX's capex guide, we estimate a 44% reinvestment rate, comparable to XOM's estimated 43%. We expect CVX's relatively better international exposure and Hess synergies to support production growth, while disciplined capital allocation continues prioritizing shareholder returns over aggressive expansion.