ExxonMobil: The Operator of Chevron's Largest Foreign AssetNarrow moat

Chevron (CVX) — moat facet

Chevron's biggest foreign asset base, $51 billion of Guyana property, is operated by ExxonMobil, which fought to keep Chevron out.

Chevron's most valuable foreign asset is run by its closest competitor. Since the Hess purchase Chevron "has a 30 percent nonoperated interest in the Stabroek Block, offshore Guyana"1, where ExxonMobil leads with 45 percent and CNOOC holds 25 percent2. ExxonMobil's side of the story, the arbitration it lost and why it fought, is told on ExxonMobil's own Competitors page. This page is about what Chevron got.

Property, plant and equipment by country, end-2025 ($M)50,960Guyana (30%, non-operated)36,761Australia (operated LNG)Chevron Form 10-K FY2025; the United States is the largest
One acquisition made Guyana bigger than Australia.

What it got was a larger foreign asset base than anything it had built itself. At the end of 2025 Guyana held $50,960 million of Chevron's property, plant and equipment, against $36,761 million in Australia3, where Chevron has spent decades building two LNG plants. Guyana became the biggest item outside America in a single transaction.

The price depends on who is counting. Chevron's 10-K records the aggregate purchase price of Hess at approximately $48 billion4; its 2023 10-K described the deal as valued at approximately $53 billion when announced5, and coverage of the 2025 investor day spoke of a $55 billion deal6. The difference is mostly the fall in Chevron's own share price between announcement and closing, since the deal was paid in shares.

The return has not arrived yet. Between closing on 18 July 2025 and the year end, Hess contributed sales of $5,957 million and net income of $193 million7, about 0.4 percent of the purchase price for five and a half months8. Guyana produced 120 thousand barrels a day for Chevron in 2025, counting only the half-year it owned the stake9.

Being a non-operator has a specific cost. ExxonMobil chooses the development plan, the vessel sequence and the pace; Chevron pays thirty percent and votes. ExxonMobil reported record Guyana production of 715 thousand barrels a day in 202510, so the asset works; what Chevron cannot do is make it work faster or cheaper than its partner decides.

The arbitration was existential for the deal. CNBC reported that "The transaction would have failed if Exxon had prevailed"11. Exxon's statement afterwards was measured: "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process"12.

The partnership gives Chevron growth and takes away control. The figure that shows whether the $48 billion was well spent is Guyana's contribution to Chevron's earnings in the first full year; if it stays near the half-year's $193 million pace for Hess as a whole, Chevron paid for the rock and not for the returns.

Moat trajectory: Widening

Guyana volumes rising under ExxonMobil's development plan.

The number that tests this moat
Reported
Guyana property, plant and equipment
$50,960M (end-2025) against Australia $36,761M

The capital committed to a field Chevron does not run; returns below the cost of capital would show the price was too high.

Source: Chevron Form 10-K, FY2025 ↗
References
  1. ReportedSince the Hess purchase Chevron "has a 30 percent nonoperated interest in the Stabroek Block, offshore Guyana", where ExxonMobil leads with 45 percent and CNOOC holds 25 percent.
    Chevron Form 10-K for fiscal 2025 - Note 29 and property tables: the Hess acquisition and property, plant and equipment. — FY2025 · publ. 24 February 2026 · source ↗
  2. ReportedSince the Hess purchase Chevron "has a 30 percent nonoperated interest in the Stabroek Block, offshore Guyana", where ExxonMobil leads with 45 percent and CNOOC holds 25 percent.
    CNBC, Chevron defeats Exxon in dispute over Guyana oil assets, clearing path for Hess acquisition. — July 2025 · publ. 18 July 2025 · source ↗
  3. ReportedAt the end of 2025 Guyana held $50,960 million of Chevron's property, plant and equipment, against $36,761 million in Australia, where Chevron has spent decades building two LNG plants.
    Chevron Form 10-K for fiscal 2025 - liquidity and capital resources: debt, ratings, capital spending, dividends and share repurchases. — FY2025 · publ. 24 February 2026 · source ↗
  4. ReportedChevron's 10-K records the aggregate purchase price of Hess at approximately $48 billion; its 2023 10-K described the deal as valued at approximately $53 billion when announced, and coverage of the 2025 investor day spoke of a $55 billion deal.
    Chevron Form 10-K for fiscal 2025 - Note 29 and property tables: the Hess acquisition and property, plant and equipment. — FY2025 · publ. 24 February 2026 · source ↗
  5. ReportedChevron's 10-K records the aggregate purchase price of Hess at approximately $48 billion; its 2023 10-K described the deal as valued at approximately $53 billion when announced, and coverage of the 2025 investor day spoke of a $55 billion deal.
    Chevron Form 10-K for fiscal 2023 - the PDC acquisition, the announced Hess value, 2023 impairments and the San Ramon headquarters. — FY2023 · publ. February 2024 · source ↗
  6. ReportedChevron's 10-K records the aggregate purchase price of Hess at approximately $48 billion; its 2023 10-K described the deal as valued at approximately $53 billion when announced, and coverage of the 2025 investor day spoke of a $55 billion deal.
    Yahoo Finance (Investing.com), Chevron projects $10-20 billion of annual buybacks - the Investor Day plan to 2030. — November 2025 · publ. 12 November 2025 · source ↗
  7. ReportedBetween closing on 18 July 2025 and the year end, Hess contributed sales of $5,957 million and net income of $193 million, about 0.4 percent of the purchase price for five and a half months.
    Chevron Form 10-K for fiscal 2025 - Note 29 and property tables: the Hess acquisition and property, plant and equipment. — FY2025 · publ. 24 February 2026 · source ↗
  8. Moat Explorer calcBetween closing on 18 July 2025 and the year end, Hess contributed sales of $5,957 million and net income of $193 million, about 0.4 percent of the purchase price for five and a half months.
    Moat Explorer calculation from Chevron's reported figures ($ millions unless stated). Segment mix 2025: external sales upstream US 19,608, upstream international 33,844, downstream US 65,331, downstream international 65,545, All Other 104, total 184,432; upstream 19,608 + 33,844 = 53,452, 53,452 / 184,432 = 29.0%; downstream 65,331 + 65,545 = 130,876, 130,876 / 184,432 = 71.0%; upstream US 19,608 / 184,432 = 10.6%; upstream international 33,844 / 184,432 = 18.4%; downstream US 65,331 / 184,432 = 35.4%; downstream international 65,545 / 184,432 = 35.5%. Upstream share of external sales 2015 (4,117 + 15,587) / 129,925 = 15.2%. Intersegment: upstream US 25,910 / 45,518 = 56.9%. Segment earnings 2025: upstream 12,822, downstream 3,022, sum 15,844; downstream 3,022 / 15,844 = 19.1%; upstream 12,822 / 15,844 = 80.9%. Downstream assets 55,243 / 324,012 = 17.0%. Change 2024 to 2025: upstream 12,822 - 18,602 = -5,780; downstream 3,022 - 1,727 = +1,295; 1,295 / 5,780 = 22.4%; Brent 81 - 69 = 12, 5,780 / 12 = about 480 per $1. 2022 upstream 12,621 + 17,663 = 30,284; downstream 5,394 + 2,761 = 8,155. Margins 2025 on sales before eliminations: upstream US 5,815 / 45,518 = 12.8%; upstream international 7,007 / 42,861 = 16.3%; downstream US 1,375 / 72,485 = 1.9%; downstream international 1,647 / 69,925 = 2.4%. Earnings over year-end segment assets: upstream 12,822 / 256,975 = 5.0%; upstream US 5,815 / 84,559 = 6.9%; upstream international 7,007 / 168,200 = 4.2%; downstream 3,022 / 55,243 = 5.5%; downstream US 1,375 / 33,745 = 4.1%; downstream international 1,647 / 21,146 = 7.8%. US downstream 531 / 3,904 - 1 = -86.4%. CPChem 352 / 8,985 = 3.9%; 352 / 903 - 1 = -61.0%. TCO revenue 21,986 / 18,872 - 1 = 16.5%; TCO net income 2,496 / 5,779 - 1 = -56.8%. Hess net income 193 / 48,000 = 0.4%. ROCE 2015-2025: 2.5, -0.1, 5.0, 8.2, 2.0, -2.8, 9.4, 20.3, 11.9, 10.1, 6.6; sum 73.1 / 11 = 6.6% average; years at or above 8%: 2018, 2021, 2022, 2023, 2024 = 5 of 11. Production: Permian 1,000 / US 1,858 = 54%; 1,000 / 3,723 = 27%; Australia 472 / 3,723 = 12.7%; Q2 2026 4,070 / 3,396 - 1 = 19.8%; 4,070 / 3,120 - 1 = 30.4%. Guyana 30% x 1.7 million gross = 510 thousand. Gas: 0.91 x 6 = 5.46 per barrel of oil equivalent; 5.46 / 70.80 = 7.7%; 1.8 billion cubic feet / 6,000 = 300 thousand boe a day. Reserves: 3,723 x 365 = 1,359 million boe a year; 10,591 / 1,359 = 7.8 years. California refining 290 + 257 = 547 of 1,099 = 49.8%. Largest holders 8.56 + 7.50 + 7.00 + 6.70 = 29.76%. Balance sheet and returns: net debt 34,461 / 17,756 = 1.94, up 94%; dividends per share 6.84 / 4.28 - 1 = 59.8%; 6.84 / 6.63 = 1.03; returns 27.1 / 12.3 = 2.2 times; free cash flow 16.6 - 12.751 = 3.8 bn; buyback authorisation 75 - 44 = 31 bn; Q2 2026 buyback 3.0 bn / 16.2 million = $185 a share; shares 1,980 / 1,755 - 1 = 12.8%, 1,980 - 1,755 = 225 million; employees 43,039 / 45,600 - 1 = -5.6%; operating and SG&A 33,444 / 29,240 - 1 = 14.4%, 33,444 - 29,240 = 4,204; DD&A 20,132 / 17,282 - 1 = 16.5%, +2,850; income tax 7,258 / 12,299 = 59.0%. Valuation: trailing sales 184,432 - 90,476 + 114,755 = 208,711; trailing net income 12,299 - 5,990 + 14,282 = 20,591; 403.40 / 20.591 = 19.6 times; 403.40 / 12.299 = 32.8 times; implied forward earnings 403.40 / 12.77 = 31.6 bn, 31.6 / 12.3 = 2.6 times; trailing EPS approximately 20,591 / 1,970 = 10.45. Swings: timing 2.9 + 1.4 = 4.3 bn; international downstream 1,013 + 2,457 = 3,470. Further: California inputs 261 + 253 = 514, 514 / 1,038 = 49.5%; GS Caltex 58 / 4,403 = 1.3%, 437 / 4,403 = 9.9%; equity affiliate income 3,000 / 5,131 - 1 = -41.5%; affiliate production 538 / 3,723 = 14.5%; Hess share of 2025 production increase 261 / 385 = 67.8%; enterprise value less market value 431.95 - 403.40 = 28.55 bn; capital employed 232,934 / 177,698 - 1 = 31.1%; total assets 324,012 - 256,938 = 67,074; Hess issuance 15% / 6% = 2.5 years, 15% / 3% = 5 years; external sales 2015 downstream US 48,420 + 4,426 = 52,846, downstream international 54,296 + 2,933 = 57,229; 2020 downstream US 32,589 - 2,150 = 30,439 - segment earnings, returns and per-unit economics. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Chevron's Forms 10-K, 10-Q, earnings releases, proxy statement and market data; operands shown in the source line.
  9. ReportedGuyana produced 120 thousand barrels a day for Chevron in 2025, counting only the half-year it owned the stake.
    Chevron Form 10-K for fiscal 2025 - Items 1 and 2: upstream operations, reserves, concessions and employees. — FY2025 · publ. 24 February 2026 · source ↗
  10. ReportedExxonMobil reported record Guyana production of 715 thousand barrels a day in 2025, so the asset works; what Chevron cannot do is make it work faster or cheaper than its partner decides.
    Exxon Mobil Corporation Form 10-K for fiscal 2025 - return on average capital employed (corporate total) of 9.3% (2025), 12.7% (2024) and 15.0% (2023); Guyana production of 715 kbd; about $700 million of annual after-tax Upstream earnings per $1 a barrel change in Brent. — FY2025 · publ. February 2026 · source ↗
  11. ReportedCNBC reported that "The transaction would have failed if Exxon had prevailed".
    CNBC, Chevron defeats Exxon in dispute over Guyana oil assets, clearing path for Hess acquisition. — July 2025 · publ. 18 July 2025 · source ↗
  12. ReportedExxon's statement afterwards was measured: "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process".
    CNBC, Chevron defeats Exxon in dispute over Guyana oil assets, clearing path for Hess acquisition. — July 2025 · publ. 18 July 2025 · source ↗
Sources
Generated September 25, 2026