Why Chevron Stock Soared 15.5% in Q1 While the Nasdaq Plunged 10%

Energy was among the best-performing sectors successful Q1. As 1 of the world's largest lipid and state producers, Chevron banal rode the vigor rally. There was, however, a batch much to Chevron stock's emergence successful Q1 than conscionable that.

Chevron accrued its dividend for the 38th consecutive twelvemonth successful Q1 and issued encouraging accumulation and currency travel guidance done 2026, backed by a beardown operational show for 2024.

2024, successful fact, was a grounds twelvemonth for Chevron connected 2 parameters. Its worldwide and U.S. accumulation jumped 7% and 19%, respectively, to a grounds high, driven mostly by maturation successful the Permian Basin. The lipid and state elephantine besides returned a grounds $27 cardinal to its shareholders successful the twelvemonth successful the signifier of dividends and stock repurchases.

Chevron besides started respective projects successful 2024, including successful the Gulf of Mexico, which President Donald Trump renamed via enforcement bid the Gulf of America, and Kazakhstan. Meanwhile, it expects to chopped costs by $2 cardinal to $3 cardinal by the extremity of 2026. Thanks to its cost-reduction initiatives and accumulation growth, Chevron expects to make incremental escaped currency travel worthy astir $9 cardinal betwixt 2025 and 2026 astatine a Brent Crude lipid terms of $60 per barrel.

Aside from these numbers, 2 different factors sent Chevron banal soaring successful the second fractional of March and contributed overmuch to its Q1 gains.

First, crude lipid prices rebounded successful the past mates of weeks of March, lifting Chevron banal higher. Second and much importantly, Chevron revealed successful a regulatory filing that it had acquired 5% involvement successful Hess between January and March 2025, reflecting the lipid giant's assurance successful closing the impending acquisition. Chevron agreed to get Hess successful precocious 2023, but arbitration proceedings person delayed the $53 cardinal all-stock deal.

Chevron banal has, unfortunately, fixed up each of its Q1 gains successful April aft President Trump's tariffs rattled the banal markets and sent crude lipid prices plunging connected fears of a planetary recession. Chevron banal has already fallen 14.9% truthful acold this month, arsenic of this writing.

This is an accidental to bargain Chevron stock. Chevron is 1 of the largest lipid and state producers successful the satellite and has weathered galore a tempest implicit its 145 years of existence. With the lipid elephantine increasing its accumulation and cutting costs astatine the aforesaid time, this 4.8%-yielding banal should inactive beryllium capable to make beardown currency flows and wage bigger dividends contempt little lipid prices.