"Chevron's free cash flow came in at $16.6 billion in 2025 against a dividend payout of $12.75 billion, a coverage ratio of 1.30x. That's tighter than it appears, because Chevron also spent $12.1 billion on buybacks, meaning total shareholder returns exceeded free cash flow."
"ExxonMobil covered its $17.2 billion dividend payout with $52 billion in operating cash flow, a coverage ratio of 3.02x. That cushion is considerably more comfortable."
"Chevron CEO Mike Wirth framed 2025 as a year of integration and discipline: 'We successfully integrated Hess, started-up major projects, delivered record production and reorganized our business. This resulted in industry-leading free cash flow growth and superior shareholder returns, despite declining oil prices.'"
"ExxonMobil CEO Darren Woods emphasized transformation over consolidation: 'ExxonMobil is a fundamentally stronger company than it was just a few years ago, and our 2025 results demonstrate that.'"
In 2025, Chevron and ExxonMobil both reported record production levels, with Chevron producing 3.723 million BOE/day and ExxonMobil reaching 4.7 million BOE/day. Chevron's free cash flow was $16.6 billion, covering a $12.75 billion dividend, resulting in a coverage ratio of 1.30x. In contrast, ExxonMobil's $52 billion operating cash flow comfortably covered its $17.2 billion dividend, yielding a coverage ratio of 3.02x. Chevron focused on cost reductions while ExxonMobil emphasized transformation and growth in its operations.
Read at 24/7 Wall St.
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