Chevron's good performance is reflected in the 10% increase in its bottom line due to the improvement in refinery margins. The company's payout ratio of 25% is higher than the industry average of 12.3%. Its dividend yield of 3.1%, along with the strong growth prospects, makes it a good stock for investors. Due to the lower tax benefits on the Australian LNG and the Gulf of Mexico projects, CVX has enjoyed the highest cash flow margins among its competitors in the Oil and Gas Industry. We believe that going forward the company's margins will expand further, through the lower maintenance expenditure required for longer-living assets. The company has the potential to achieve further economies of scale and register growth through the Tengiz debottlenecking, shale in North America, and Kuwait projects. The company has collaborated with Argentine's YPF Sociedad Anonima (ADR) for production, development and exploration of shale gas and oil reserves.