Chevron Corporation (NYSE:CVX) posted stronger-than-expected third-quarter results as higher upstream production and refining margins lifted earnings, while the newly integrated Hess assets bolstered output at the top end of guidance.
With synergies tracking ahead of schedule and core projects like Tengiz and the Permian driving growth, the oil major’s execution momentum and cash generation underscore a solid foundation for expanding shareholder returns.
Bank of America Securities analyst Jean Ann Salisbury reaffirmed a Buy rating on Chevron Corporation (NYSE:CVX) with a price forecast of $183 following third quarter earnings results.
Earnings Snapshot
The energy giant’s adjusted earnings were $1.85 per share, down from $2.51 a year ago but above the consensus estimate of $1.71.
Operationally, U.S. and global production rose 27% and 21% year-over-year, respectively, in the quarter.
Analyst View
The analyst writes that the company’s project execution remains strong, with legacy CVX production up 195kbd sequentially, on track to hit the high end of its 6%–8% fiscal 2025 growth target excluding-Hess.
Salisbury says that the full-scale operations may lead to further debottlenecking, while early 2033 TengizChevroil (TCO) contract extension talks could provide investors some clarity.
In the Permian, production rose on moderated capex, reflecting operational efficiencies and a potential plateau above 1 Mboed, adds the analyst.
The analyst writes that given near-term free cash flow potential and execution success across Gulf of America, TCO, and Hess, CVX remains their top pick in the integrated and refining space.
Price Action: CVX shares were trading lower by 1.52% to $155.33 at last check Monday.
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