ExxonMobil, Chevron, and Shell are three of the largest multinational oil and gas companies in the world.
However, although they operate in the same industry, there are differences in their strategies, operations, and market presence.
In this post, we will compare the three oil majors.
About ExxonMobil
ExxonMobil is an American multinational corporation with headquarters in Irving, Texas. Currently, it is the second largest publicly traded oil and gas company, with a market capitalization of $427.18 billion, after Saudi Aramco (ARMCO).
The company operates in all oil and gas industry sectors, including research, production, refining, and marketing.
ExxonMobil has a solid global presence and operates in various regions worldwide. It also has a reputation for being a leader in technological innovation.
About Chevron Corporation
Chevron is also an American multinational corporation with headquarters in San Ramon, California. It has a recent capitalization of $296.75 billion and 3rd placed behind ARMCO and ExxonMobil.
Chevron is one of the largest integrated companies in the world and is involved in various aspects of the oil and gas industry.
The company operates in numerous countries and is known for its focus on operational excellence, environmental stewardship, and safety.
About Shell
Shell, officially known as Royal Dutch Shell, is a British-Dutch influential multinational company. It is headquartered in The Hague, Netherlands, and incorporated in the United Kingdom.
It currently has a market cap of $196.94 billion and falls in the 4th place after ARMCO, ExxonMobil, and Chevron.
The company operates in various countries worldwide and has a strong retail presence and a network of service stations.
Shell has actively diversified its energy portfolio and invested in low-carbon and renewable technologies.
ExxonMobil vs Chevron vs Shell -Growth Prospects
ExxonMobil
ExxonMobil expects to double its earnings and cash flow potential by 2025. The corporate aims to increase investments in emission reductions and lower-emission initiatives.
The company’s plan through 2027 is to maintain annual capital expenditures at $20 to $25 billion while growing lower-emission investments to about $17 billion.
This approach prioritizes high-return, low-cost-supply assets in their Upstream and Product Solution business. It supports efforts to minimize greenhouse emissions intensity from operated assets and other companies.
The company also plans to deploy 70%+ capital investments in strategic developments in the Permian Basin, Brazil, Guyana, and LNG projects worldwide. They expect to get great returns from these key growth areas.
Aside from this, ExxonMobil intends to move forward with a $560 million investment from one of its majority-owned affiliates. They want to construct the largest renewable diesel facility in Canada.
From their estimations, the refinery will produce up to 20,000 barrels of renewable diesel daily.
At full capacity, the facility is expected to minimize greenhouse gas emissions by around 3 million metric tons per year in the Canadian transportation market.
However, although the plans are quite exciting, the oil industry is unpredictable, and investors should not take it as given.
Chevron
Chevron expects to invest $13 – $15 billion per year in growth projects within five years. With these projects, the company expects to grow its production by more than 3% per annum on average.
And since the corporation will invest in low-cost barrels, it expects more earnings.
Shell
Shell’s plan is to become a net-zero emissions company by 2050. To achieve this, they are working with governments, customers, and others to address the GHG emissions
The company’s cash capital expenditure for 2023 is within the $23 – $27 billion range. Its capital framework target is at least 20 – 30% cash distribution from operations to shareholders.
Shell may also choose to return cash to shareholders through share buybacks and dividends. The company also aims to grow its dividend per share by 4% yearly.
ExxonMobil vs Chevron vs Shell -Dividends
ExxonMobil’s dividend payments have grown at an average of 5.9% per annum for the last 40 years. Even after a long history of paying dividends, the corporation’s distributions have remained stable.
The company’s dividend yield is approximately 3.3% today.
And although the growth of the dividends has been relatively slow, some investors still value the relative consistency.
Chevron has been raising dividends for the last 36 years. Its yield today is roughly 3.7%, thus higher than ExxonMobil’s and a fairly attractive number compared to the broader market.
The current dividend yield for Shell is 3.99%, higher than ExxonMobil’s and Shell’s. It is also higher than the bottom 25% of payers in the U.S. market at a yield of 1.63%.
Who is bigger, Shell or Exxon?
Exxon is bigger with a market cap of $427.18 billion, than Shell’s $196.4 billion.
Is Chevron fuel better than Shell?
Both brands offer high-quality products with unique advantages and disadvantages.
Who owns Chevron?
Chevron Corporation under Mike Wirth as the CEO.
Final Words
ExxonMobil, Chevron, and Shell have different growth and investment plans. ExxonMobil and Chevron prefer to stick to their core oil and gas specialties, while Shell is more aggressive on the clean energy front.
Exxon has a long history and a diversified portfolio. It also has a strong presence in production, refining, and marketing products. However, it is slower to respond to renewable energy transitions.
Chevron is more focused on cost management and operational efficiency to improve its financial performance.
Shell has actively diversified its portfolio by investing in renewable energy sources like biofuel and wind as solar power. The company has set goals to reduce carbon emissions and address environmental concerns.
Ultimately, the success and long-term viability of the three companies depend on their ability to stabilize growth and navigate the energy transition.
