Chevron saw a leap in its market value as it soon went above Exxon Mobil as the biggest oil company in the USA. It closed close to $4.1 billion on Wednesday, with an all-stock deal for Noble Energy- a smaller gas and oil producer. This put the market cap for Chevron at $142 billion, which topped the market cap of Exxon Mobil at $141.65 billion. And this news was reported by the SEC filings of Chevron, along with Refinitiv Data- pertaining to the deal with Noble Energy. It is imperative to note that the shares of Chevron actually went up 2.047%, while it simply rose 0.3% in Exxon Mobil’s case. 

One of the major reasons why Chevron has been doing so good in the oil industry is because they have much stronger finances and shares that have been performing better consistently. They have also shifted themselves from bringing forth expensive megaprojects that are usually favored by oil conglomerates, and have rather moved towards cutting costs- when the pandemic has seriously damaged the prices of oil and gas. Most investors have started shunning companies of fossil fuels with the energy sector hitting the worst on the S&P 500 till date. Both the companies have seen their shares take major hits, with Chevron’s stocks down by 38%, whereas Exxon’s have gone down 52%. This stupendous decline saw Exxon removed from the Dow Jones Industrial Average- the first time in its history. 

The condition has been so dire for both Exxon and Chevron (mostly Exxon), that the former had had to borrow close to $15 billion a year to cover the price of new projects.