Chevron issues $5.5 billion in new notes with maturities through 2035

Chevron Corporation (NYSE:CVX) announced Wednesday that its subsidiary, Chevron U.S.A. Inc. (CUSA), has issued a series of senior unsecured notes totaling $5.5 billion. The new debt offering includes a mix of fixed and floating rate notes with maturities ranging from 2027 to 2035, according to a statement filed with the Securities and Exchange Commission. The issuance represents a measured addition to Chevron’s existing $29.47 billion debt load, which InvestingPro data shows is well-managed with a conservative debt-to-equity ratio of 0.2.

The issuance consists of the following tranches: $500 million of 3.950% notes due 2027, $650 million of 4.050% notes due 2028, $600 million of floating rate notes due 2028, $1.2 billion of 4.300% notes due 2030, $400 million of floating rate notes due 2030, $1.25 billion of 4.500% notes due 2032, and $900 million of 4.850% notes due 2035.

The obligations under the notes are fully and unconditionally guaranteed by Chevron Corporation on an unsecured and unsubordinated basis, ranking equally with the company’s other unsecured and unsubordinated debt.

The fixed rate notes may be redeemed in whole or in part by CUSA prior to maturity, as described in the final prospectus supplement filed with the SEC. The floating rate notes, due in 2028 and 2030, will bear interest at a rate based on Compounded SOFR plus 57 basis points and 82 basis points, respectively, and are not subject to early redemption.

Interest payments on the fixed rate notes will be made semi-annually, while the floating rate notes will pay interest quarterly, with the first payments scheduled to begin in late 2025 or early 2026, depending on the tranche.

The offering was made pursuant to an underwriting agreement dated August 11 between CUSA, Chevron Corporation, and a group of underwriters led by Barclays Capital Inc., BofA Securities, Inc., and Citigroup Global Markets Inc.

This information is based on a statement filed with the Securities and Exchange Commission. With a market capitalization of $316.26 billion and a current ratio of 1.0, Chevron demonstrates solid financial positioning for this debt offering. InvestingPro analysis indicates that Chevron’s stock is currently trading below its Fair Value, suggesting potential upside opportunity for investors.

In other recent news, Chevron Corporation reported its second-quarter 2025 financial results, with earnings per share (EPS) of $1.77, slightly surpassing the forecast of $1.75. However, the company’s revenue came in at $44.82 billion, which was below the expected $45.6 billion. Despite the revenue miss, Chevron’s operational performance was strong enough to drive positive market sentiment. Additionally, Chevron has completed its acquisition of Hess Corporation, a move that Morgan Stanley suggests has removed a significant overhang for the company. Morgan Stanley resumed coverage of Chevron with an Overweight rating and set a price target of $174.00. In another development, a tanker chartered by Chevron has docked at Venezuela’s PDVSA’s Jose terminal to load crude oil for the U.S., following a new license issued by the U.S. government. Meanwhile, Goldman Sachs raised its price target on Chevron to $177.00 from $175.00, maintaining a Buy rating. This adjustment follows investor meetings with Chevron executives, where Goldman Sachs became more constructive on the company’s free cash flow outlook.

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