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stocks we like better than Chevron ›Oil prices are having a down year. Brent, the global benchmark price, has fallen 15% to around $63 a barrel. That slump has weighed on the cash flows and stock prices of most oil companies. There's no telling where oil prices will go from here. However, Chevron (NYSE: CVX) doesn't need crude prices to rally to drive its cash flow higher. That's because the oil giant is about to hit a major inflection point that will fuel a meaningful uptick in its free cash flow in 2026 and beyond. That makes it stand out as the best oil stock to buy for those with around $150 to invest right now (about the price of one Chevron share).Image source: Getty Images.Chevron has invested heavily in expanding its operations over the past several years. The oil company and its partners have been working on many major capital projects around the world, most notably in Kazakhstan and the Gulf of Mexico (also known as the Gulf of America in the U.S.). Several of these projects have started producing oil over the past year. As a result, they've gone from cash consumers to cash producers. The oil giant has also significantly expanded its U.S. onshore production in recent years through acquisitions (Noble Energy in 2020 and PDC Energy in 2023) and organic development. As a result, it recently achieved a key milestone in the Permian Basin by hitting 1 million barrels of oil equivalent (BOE) per day of production, while also significantly expanding its output in the DJ Basin. Chevron also recently completed its $55 billion acquisition of Hess. That deal added to its U.S. onshore resource position (Bakken) and gave it a stake in a world-class oil resource in Guyana. Additionally, Chevron is working to leverage its growing scale to deliver structural cost savings. The oil giant aims to achieve $3 billion to $4 billion of cost reductions by the end of next year. That's a $1 billion increase from its prior target. This combination of production growth and cost reductions, driven by lower capital expenses and operating cost savings, has Chevron on track to produce significantly more free cash flow in 2026. The company anticipates generating an additional $12.5 billion in free cash flow next year, assuming oil prices average $70 per barrel, compared to this year's level. It can still produce a lot more free cash flow next year if crude remains at its current level in the low-to-mid $60s.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,827.41 -73.59 (-1.07%)Dow 3048,458.05 -245.96 (-0.51%)Nasdaq23,195.17 -398.69 (-1.69%)Russell 20002,551.46 -39.15 (-1.51%)VIX15.74 +0.89 (+5.99%)Gold4,328.30 +15.30 (+0.35%)Trending tickersBTC-USD Bitcoin USD 90,112.82 -115.17 (-0.13%)ETH-USD Ethereum USD 3,104.66 +22.60 (+0.73%)RBLX Roblox Corporation 88.51 -5.83 (-6.18%)OKLO Oklo Inc. 87.42 -15.58 (-15.13%)XRP-USD XRP USD 2.02 +0.01 (+0.71%)PortfolioSign in to access your portfolioSign inTop gainersYOU Clear Secure, Inc. 41.08 +4.82 (+13.29%)RIVN Rivian Automotive, Inc. 18.42 +1.99 (+12.11%)EVCM EverCommerce Inc. 12.08 +1.19 (+10.93%)LULU lululemon athletica inc. 204.97 +17.96 (+9.60%)VERA Vera Therapeutics, Inc. 49.80 +3.78 (+8.21%)Top losersFRMI Fermi Inc. 10.09 -5.16 (-33.84%)MOD Modine Manufacturing Company 139.88 -25.31 (-15.32%)OKLO Oklo Inc. 87.42 -15.58 (-15.13%)SEI Solaris Energy Infrastructure, Inc. 46.07 -8.01 (-14.81%)SNDK Sandisk Corporation 206.18 -35.43 (-14.66%)Most activeNVDA NVIDIA Corporation 175.02 -5.91 (-3.27%)BBAI BigBear.ai Holdings, Inc. 6.38 -0.36 (-5.34%)PLUG Plug Power Inc. 2.3200 -0.0400 (-1.69%)RIVN Rivian Automotive, Inc. 18.42 +1.99 (+12.11%)TSLA Tesla, Inc. 458.96 +12.09 (+2.71%)Top economic eventsEarnings eventsMy earnings eventsEarnings events