Chevron Stock Soars 3.47% on Permian Basin, Hydrogen Plans

On July 18, 2025, Chevron's stock price surged by 3.47% in pre-market trading, reflecting positive market sentiment and strategic initiatives by the company.

Chevron's page rock oil business president, Bruce Niemeyer, announced that the company expects to generate $50 billion in free cash flow by 2027 from its operations in the Permian Basin, assuming an oil price of $60 per barrel. Currently, the company operates nine drilling rigs in the basin, down from 13 at the start of 2025.

Chevron has submitted an application to the state of Texas to invest $50 billion in building a large-scale low-carbon hydrogen and ammonia production base in Arthur Harbor. The project, part of the federal HyVelocity Hub initiative, is scheduled to begin construction in 2027 and commence operations in 2032. This strategic move aligns with the U.S. Inflation Reduction Act's 45V tax credit policy, which offers up to $3 per kilogram in hydrogen production tax incentives, set to expire in January 2028.

As a key partner in the HyVelocity Hub, Chevron will collaborate with ExxonMobil and other companies to develop a hydrogen ecosystem. The project aims to meet the Treasury Department's requirement for hydrogen production with carbon emissions below 4 kilograms of CO2 equivalent per kilogram, qualifying for the maximum tax credit. This investment underscores Chevron's strategic foresight in capitalizing on policy opportunities and advancing its low-carbon transition.