Capital Protection Certificate on Chevron and Southern Company

US rates stabilized at rather high level, giving the opportunity to consider full capital protection structured products. The following instrument has only two stocks in the basket with participation coefficient 100% and no cap on the equity price growth in 2.5 years.

Southern Company operates in a sector with stable demand also having an exposure to the technology sector (with major clients including Microsoft, OpenAI, Alphabet and others), which provides an opportunity to participate in the growth of the emerging AI sector. Chevron demonstrates solid results in their recent release which also provides opportunities for further growth.

Chevron Corporation [Internal score 71/100] is one of the world’s largest vertically integrated oil and gas supermajors. Its upstream segment generates approximately 80% of its operating profit, driven by production in the Permian Basin and various international offshore projects. The remaining 20% of operating earnings is derived from the downstream segment. The acquisition of Hess Corporation – which includes a significant stake in the massive Stabroek offshore oil project in Guyana – strategically strengthens Chevron’s long-term production portfolio for decades to come.

In the 3rd quarter of 2026, the company’s adj. revenue grew by 39% year-on-year to $67.1 billion, while adj. EBITDA rose almost two times year-on-year to $19.8 billion. The EBITDA margin also remained consistently high, at 29% in the 2nd and the 3rd quarters. Net profit for the last quarter exceeded $10 billion vs 3.6 billion for the same period of 2025. Adj. Free Cash Flow for the last quarter was above $14 billion.

The Southern Company [Internal score 50/100] is one of the largest traditional electric utility holding companies in the United States. Its key business segments include Regulated Electric Utilities, Gas Distribution, and Nuclear & Fossil Fuels. Notably, the commissioning of new nuclear reactors at the Vogtle Electric Generating Plant in Georgia has made The Southern Company the owner of the largest nuclear power generation facility in the U.S.

According to the recent financial report for the past quarter of 2026 adj. revenue increased 13% y-o-y and amounted to $8.8B. Adj. EBITDA for the past quarter amounted to $4.5B a little bit higher than for the same period in 2025 when it was $4.2B. EBITDA margin for the quarter was around 50% level. Adj. Net income exceeds $2.1B vs $1.7B for the same quarter in 2025.

The recent sell-off gives us a better entry point while high Treasury yields still make full capital protection attractive to structure. Brent fell more than 16% last week on hopes of a US-Iran deal, pulling Chevron down despite strong quarterly results. But negotiations remain unresolved, and shipping risks around Hormuz could push oil prices back up. Southern faces a different concern: Georgia’s Democratic election victory has raised fears of tighter utility regulation and a pause in new data-centre projects. Yet its 21 GW of signed large-load contracts remain in place, and management has expressed confidence in their protection against regulatory changes. Tomorrow’s US inflation report is the next catalyst. A softer reading could ease pressure on Treasury yields and help Southern recover. The combination of lower share prices and favourable funding conditions makes this a good moment to enter.