Chevron: Solid Energy Demand Ahead

Chevron offers a compelling buy as oil inventories are at multi-decade lows, providing a structural floor under crude prices. CVX's record production, post-Hess acquisition, and integrated refining operations position it to capture outsized margins during the restocking cycle. Q2 earnings are likely to benefit from a reversal of Q1's $2.9 billion timing headwind, potentially delivering a positive earnings surprise. Project Kilby, a 20-year AI power deal with Microsoft, diversifies CVX's revenue and offers free optionality unpriced by the market.