Chevron Stock Jumps 3.3% After Free Cash Flow Update and AI Power Deal as Big Oil Profits Draw Political Fire

Chevron shares rose 3.3% on Monday after the company late Friday issued an updated free cash flow outlook for the year, signaling stronger-than-expected performance, and separately announced a 20-year power purchase agreement with Microsoft to supply natural gas-fired electricity to AI data centers, adding a new long-term revenue stream beyond traditional oil and gas. The stock move came as Hess acquisition synergies were described as running ahead of schedule, supporting production growth and per-share cash flow accretion through 2030. Chevron is also benefiting from the broader oil price environment: the five largest supermajors, including Exxon Mobil, Chevron, BP, Shell, and TotalEnergies, combined for $48 billion in second-quarter profits and nearly $90 billion in cash, an all-time high, as Brent crude surged above $100 a barrel following US-Iran hostilities around the Strait of Hormuz before retracing to around $89.

That windfall has drawn political scrutiny, with President Trump publicly accusing Exxon Mobil and Chevron of making too much money and renewed calls for windfall taxes. On valuation, Chevron trades at roughly 14.4 times forward earnings, a premium to BP at 9.9 times but in line with ExxonMobil at 14.5 times. Chevron's dividend record, which has never been cut, continues to be cited as a distinguishing factor among large-cap energy names.