Time to Change the Oil — Chevron Passes Exxon as Largest Oil Company in U.S.

FILE - This Oct. 8, 2019, file photo shows the logo for Chevron on the floor of the New York Stock Exchange. Chevron Corp. reports financial results Friday, Nov. 1. Chevron said Tuesday, Dec. 10, it will book a charge of at least $10 billion because lower long-term prices for oil and natural gas are making some projects less valuable. (AP Photo/Richard Drew, File)

With all the business news focused on the flashy world of technology, let’s take a minute to talk about the old-school titans who used to dominate the top of every list that ranked America’s highest-valued businesses: oil companies. Today, Chevron’s market value eclipsed Exxon Mobil for the first time ever, meaning there’s a new oil baron in town. The deal that put Chevron over the top was the $4.1 billion, all-stock deal to acquire Noble Energy that closed last Wednesday.

Chevron’s market cap ended Monday at about $142 billion, just enough to top Exxon Mobil’s $141.65 billion market value, according to reports.

Most of the news for the oil industry has been bad in 2020, as this has been the worst-performing year for energy-sector businesses ever. Chevron’s stock is down 38% from a year ago, and it’s even worse for Exxon Mobil, which has plummeted 52% and was removed from the Dow Jones Industrial Average, where it’s been included since the creation of the index.

To further illustrate oil companies’ struggles, NextEra Energy Inc., the world’s biggest producer of wind and solar power, passes both oil companies, with a market cap at $145.5 billion. That gives NextEra the distinction of being the world’s most valuable utility.

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