Chevron Issues $5.5 Billion in Notes for Funding

Chevron has issued $5.5 billion in notes with varying maturity dates ranging from 2027 to 2035, aiming to strengthen its financial position and secure long-term funding through fixed and floating rate notes. The issuance may impact Chevron's debt structure and market standing. The company has a strong earnings call performance and strategic corporate events, with solid financial performance and a moderate valuation.

Title: Chevron Issues $5.5 Billion in Notes with Maturities Through 2035

Chevron Corporation (NYSE:CVX) has announced a significant debt issuance, with its subsidiary, Chevron U.S.A. Inc. (CUSA), issuing $5.5 billion in senior unsecured notes. The notes, which have maturities ranging from 2027 to 2035, include a mix of fixed and floating rate instruments. This issuance represents a measured addition to Chevron's existing debt load, which currently stands at $29.47 billion [1].

The notes are structured as follows:
- $500 million of 3.950% notes due in 2027
- $650 million of 4.050% notes due in 2028
- $600 million of floating rate notes due in 2028
- $1.2 billion of 4.300% notes due in 2030
- $400 million of floating rate notes due in 2030
- $1.25 billion of 4.500% notes due in 2032
- $900 million of 4.850% notes due in 2035

The fixed rate notes may be redeemed in whole or in part by CUSA prior to maturity, while the floating rate notes, due in 2028 and 2030, will bear interest at rates based on Compounded SOFR plus 57 and 82 basis points, respectively, and are not subject to early redemption. Interest payments on the fixed rate notes will be made semi-annually, with the floating rate notes paying interest quarterly, with the first payments scheduled to begin in late 2025 or early 2026 [1].

The offering was made pursuant to an underwriting agreement dated August 11 between CUSA, Chevron Corporation, and a group of underwriters led by Barclays Capital Inc., BofA Securities, Inc., and Citigroup Global Markets Inc. This issuance underscores Chevron's strong financial positioning, as evidenced by its current ratio of 1.0 and a debt-to-equity ratio of 0.2 [1].

In addition to the debt issuance, Chevron reported its second-quarter 2025 financial results, with earnings per share (EPS) of $1.77, slightly surpassing the forecast of $1.75. However, the company's revenue came in at $44.82 billion, which was below the expected $45.6 billion. Despite the revenue miss, Chevron's operational performance was strong enough to drive positive market sentiment. The company has also completed its acquisition of Hess Corporation, which Morgan Stanley suggests has removed a significant overhang for the company. Morgan Stanley resumed coverage of Chevron with an Overweight rating and set a price target of $174.00. Goldman Sachs raised its price target on Chevron to $177.00 from $175.00, maintaining a Buy rating [2].

Institutional investors have also shown interest in Chevron, with Resona Asset Management Co. Ltd. increasing its holdings by 5.8% in the first quarter. Chevron accounts for approximately 0.5% of Resona's holdings, making it the 29th biggest position. Other institutional investors, such as Sage Capital Advisors llc and CCG Wealth Management LLC, have also increased their positions in Chevron [2].

The market has given Chevron a mixed rating, with a consensus rating of "Hold" and an average target price of $164.11. Analysts have expressed varying opinions, with some rating the stock as a "buy" and others as a "sell" or "hold" [2].

References:
[1] https://au.investing.com/news/sec-filings/chevron-issues-55-billion-in-new-notes-with-maturities-through-2035-93CH-3977521
[2] https://www.marketbeat.com/instant-alerts/filing-chevron-corporation-nysecvx-stock-position-raised-by-resona-asset-management-co-ltd-2025-08-12/