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Chevron’s Fiscal 3Q15 Performance Was Lower than Its Peers

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Chevron’s fiscal 3Q15 earnings

In the last part of this series, we saw how institutional investors played Chevron (CVX) in fiscal 3Q15. Let’s compare Chevron’s YTD (year-to-date) return performance with its peers including ExxonMobil (XOM), ConocoPhillips (COP), and BP (BP). We’ll also compare it to its international peers including Total (TOT) and Statoil (STO).

The above chart shows that Chevron has mainly been negative in 2015. The stock closed at ~$90 on October 23. It was trading at ~$112 on January 1, 2015. It fell ~20% over the same period.

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Chevron’s fiscal 2Q15 financial results were weak. The results showed that crude oil’s price fell ~50% in one year. The company has been providing the lowest returns among its peers. ExxonMobil fell ~13% since the beginning of this year. There are a few reasons for its lower returns. Chevron’s upstream businesses were hit due to lower crude oil prices. The lower prices reduced the revenue and macro factors. Its global peers including Total and Statoil returned -0.59% and -1.6%, respectively. So, it appears that the international peers had better returns over the same period.

Did Chevron’s stock underperform?

In the above chart, you can see that Chevron has been delivering a lower return among its peers. At the same time, the Energy Select Sector SPDR Fund (XLE) had an ~15% return since January this year. The iShares U.S. Energy  ETF (IYE) tries to replicate the performance of the Dow Jones Energy Index. Chevron and ExxonMobil account for 11.9% and 23.90%, respectively, of IYE.

In the next part of the series, we’ll look at hedge funds’ take on Chevron.

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