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Can Chevron's Record Natural Gas Output Strengthen Its LNG Position?
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Key Takeaways
Chevron's natural gas output exceeded 9 Bcf/d in Q3 2026, setting a new quarterly production record.
Tamar optimization, Leviathan's third gathering line and Australia's LNG reliability drove strong gas output.
CVX's shares gained 41.3% in a year, while EPS estimates rose 10.60% for 2026 and 18.14% for 2027.
Chevron Corporation (CVX - Free Report) set a new quarterly natural gas production record in third-quarter 2026, producing more than 9 billion cubic feet per day (Bcf/d). Management said the milestone was led by strong performance in Australia and the Eastern Mediterranean. The result reflects improving output from key gas assets even as Chevron navigated planned turnarounds, higher-price entitlement impacts and disruptions related to the Middle East conflict. Total net oil-equivalent production, by comparison, was 3.98 million barrels of oil equivalent per day (MMboe/d), down from 4.086 MMboe/d in the year-ago quarter.
In the Eastern Mediterranean, Chevron's Tamar optimization project and Leviathan's third gathering line ramped up quickly, supporting record quarterly production in the region. Australia also delivered strong operational reliability. Management credited predictive maintenance, centralized data-driven decision-making and artificial intelligence with helping maximize LNG supply into a tight market. These operational improvements are important because Chevron's gas volumes support its LNG business and provide additional supply to global customers.
Regionally, U.S. upstream natural gas production was 3.522 Bcf/d in the third quarter, up from 3.265 Bcf/d a year earlier. International upstream gas production was 5.563 Bcf/d, down from 5.674 Bcf/d in the year-ago quarter. Thus, the company-wide production record came alongside mixed regional trends, with stronger U.S. gas volumes and operating gains at key overseas assets. This distinction will matter as investors assess how reliably Chevron can sustain gas supply through future turnarounds and geopolitical disruptions.
How Does Chevron's Gas Output Compare With Its Peers?
ExxonMobil Holdings Corporation (XOM - Free Report) reported worldwide net natural gas production available for sale of 7.301 Bcf/d in third-quarter 2026, up from 6.849 Bcf/d in the second quarter. The company's latest production figures provide a useful scale reference for the industry. ExxonMobil also reported strong gas contributions from the United States, Asia and Australia.
Shell plc (SHEL - Free Report) reported 3.942 Bcf/d of natural gas production available for sale in its Integrated Gas segment and 2.562 Bcf/d in the Upstream segment. The company's combined reported volumes were approximately 6.504 Bcf/d. Shell's segment-based reporting differs from Chevron's company-wide production disclosure, but its results also highlight the importance of integrated gas operations. The company's Integrated Gas production increased sequentially in the third quarter, supporting stronger segment earnings.
CVX Stock Gains 41% in a Year: How Do Peers Compare?
CVX’s shares gained 41.3% over the past year, outperforming Shell's 38.2% increase, while ExxonMobil advanced 48.2% during the same period. Chevron's strong share-price performance reflects investor interest in its integrated energy operations, global production portfolio and long-term growth opportunities.
Image Source: Zacks Investment Research
Is Chevron Stock Attractively Valued Against Its Peers?
Image Source: Zacks Investment Research
From a valuation perspective, Chevron trades at a forward 12-month P/E of 12.92, compared with 13.9 for ExxonMobil and 9.6 for Shell. This places Chevron between its two integrated energy peers. The valuation offers investors a useful benchmark for evaluating Chevron’s valuation alongside its operational performance and earnings outlook.
Rising Earnings Estimates Strengthen CVX's Outlook
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for CVX's EPS has increased 10.60% for 2026 and 18.14% for 2027. The current estimates stand at $18.26 per share for 2026 and $17.32 per share for 2027. The upward revisions indicate growing analyst confidence in Chevron's earnings outlook.
Chevron's VGM Score of A highlights its overall investment appeal. The company also holds a Value Score of A, indicating attractive valuation, and a Growth Score of A, reflecting favorable earnings growth prospects. Currently, CVX has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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Can Chevron's Record Natural Gas Output Strengthen Its LNG Position?
Key Takeaways
Chevron Corporation (CVX - Free Report) set a new quarterly natural gas production record in third-quarter 2026, producing more than 9 billion cubic feet per day (Bcf/d). Management said the milestone was led by strong performance in Australia and the Eastern Mediterranean. The result reflects improving output from key gas assets even as Chevron navigated planned turnarounds, higher-price entitlement impacts and disruptions related to the Middle East conflict. Total net oil-equivalent production, by comparison, was 3.98 million barrels of oil equivalent per day (MMboe/d), down from 4.086 MMboe/d in the year-ago quarter.
In the Eastern Mediterranean, Chevron's Tamar optimization project and Leviathan's third gathering line ramped up quickly, supporting record quarterly production in the region. Australia also delivered strong operational reliability. Management credited predictive maintenance, centralized data-driven decision-making and artificial intelligence with helping maximize LNG supply into a tight market. These operational improvements are important because Chevron's gas volumes support its LNG business and provide additional supply to global customers.
Regionally, U.S. upstream natural gas production was 3.522 Bcf/d in the third quarter, up from 3.265 Bcf/d a year earlier. International upstream gas production was 5.563 Bcf/d, down from 5.674 Bcf/d in the year-ago quarter. Thus, the company-wide production record came alongside mixed regional trends, with stronger U.S. gas volumes and operating gains at key overseas assets. This distinction will matter as investors assess how reliably Chevron can sustain gas supply through future turnarounds and geopolitical disruptions.
How Does Chevron's Gas Output Compare With Its Peers?
ExxonMobil Holdings Corporation (XOM - Free Report) reported worldwide net natural gas production available for sale of 7.301 Bcf/d in third-quarter 2026, up from 6.849 Bcf/d in the second quarter. The company's latest production figures provide a useful scale reference for the industry. ExxonMobil also reported strong gas contributions from the United States, Asia and Australia.
Shell plc (SHEL - Free Report) reported 3.942 Bcf/d of natural gas production available for sale in its Integrated Gas segment and 2.562 Bcf/d in the Upstream segment. The company's combined reported volumes were approximately 6.504 Bcf/d. Shell's segment-based reporting differs from Chevron's company-wide production disclosure, but its results also highlight the importance of integrated gas operations. The company's Integrated Gas production increased sequentially in the third quarter, supporting stronger segment earnings.
CVX Stock Gains 41% in a Year: How Do Peers Compare?
CVX’s shares gained 41.3% over the past year, outperforming Shell's 38.2% increase, while ExxonMobil advanced 48.2% during the same period. Chevron's strong share-price performance reflects investor interest in its integrated energy operations, global production portfolio and long-term growth opportunities.
Image Source: Zacks Investment Research
Is Chevron Stock Attractively Valued Against Its Peers?
Image Source: Zacks Investment Research
From a valuation perspective, Chevron trades at a forward 12-month P/E of 12.92, compared with 13.9 for ExxonMobil and 9.6 for Shell. This places Chevron between its two integrated energy peers. The valuation offers investors a useful benchmark for evaluating Chevron’s valuation alongside its operational performance and earnings outlook.
Rising Earnings Estimates Strengthen CVX's Outlook
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for CVX's EPS has increased 10.60% for 2026 and 18.14% for 2027. The current estimates stand at $18.26 per share for 2026 and $17.32 per share for 2027. The upward revisions indicate growing analyst confidence in Chevron's earnings outlook.
Chevron's VGM Score of A highlights its overall investment appeal. The company also holds a Value Score of A, indicating attractive valuation, and a Growth Score of A, reflecting favorable earnings growth prospects. Currently, CVX has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.