Chevron Corporation (CVX Quick QuoteCVX - Free Report) , a major oil and gas producer in the U.S., announced a memorandum of understanding (MoU) between its subsidiary Chevron U.S.A. Inc. and Cummins Inc. (CMI Quick QuoteCMI - Free Report) to leverage complementary positioning in hydrogen, natural gas, and other lower carbon fuel value chains.

The announcement is set to expand the two companies' prior strategic partnership in 2021 on hydrogen and renewable natural gas. The expanded partnership is anticipated to cover additional liquid renewable fuels, including renewable gasoline blends, biodiesel and renewable diesel. The MoU is aimed at encouraging commercial and industrial adoption in North America.

According to Jennifer Rumsey, president and CEO of Cummins, the agreements with Chevron are a cornerstone of the former’s ambition to reach net zero emissions by 2050. She added that the company continues to provide a wide range of engine-based solutions that lower greenhouse gas and other pollutants today through Accelera by Cummins. Accelera has leading zero-emissions technology for commercial and industrial applications. With strategic partnership with Chevron, CMI hopes to increase its clients' access to infrastructure and fuel while lowering emissions and increasing the supply of alternative and renewable fuels.

Chevron’s president of Americas Products Andy Walz stated that collaborations like this (with Cummins) are intended to make energy and global supply chains more affordable and reliable while helping commercial fleets that use CVX products and Cummins’ equipment to transition to a lower-carbon world. He also added that no one company or industry can do it all alone.

Together, Cummins and Chevron will enable the commercial development at scale of alternative fuels production, transportation and delivery systems for industrial and commercial markets. The companies will do so with a focus on consumption by transportation vehicles of the type made by Cummins. Each company has made contributions to the research, development and global deployment of alternative fuels innovation, systems and technologies. In order to increase commercial adoption, workstreams in the new collaboration focus on hydrogen, natural gas and other low-carbon fuel alternatives, including biodiesel, compressed natural gas, renewable diesel and other liquid renewables.

Chevron is one of the largest publicly traded oil and gas companies in the world with operations that span almost every corner of the globe.

Apart from CVX, a couple of other stocks for investors interested in the energy sector are Evolution Petroleum Corporation (EPM Quick QuoteEPM - Free Report) and Murphy USA Inc. (MUSA Quick QuoteMUSA - Free Report) .

Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2024 in the past 30 days.

EPM’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 38.4%.

Murphy USA serves 1.6 million customers daily and owns a dedicated line on the Colonial Pipeline. It operates stations near Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.

MUSA’s earnings beat estimates in two of the last four quarters and missed in the other two, delivering an average surprise of 5.1%.