Chevron: Upgraded Permian Well Data and Long-Term Production Visibility Underpin Outperform (Buy) Rating

Analyst Phillip Jungwirth from BMO Capital maintained a Buy rating on Chevron and keeping the price target at $170.00.

Phillip Jungwirth has given his Buy rating due to a combination of factors related to Chevron’s operational performance and financial strength. He highlights that updated Delaware Basin well data correct prior reporting issues and now indicate materially better productivity for 2024–2025 wells than previously believed, alleviating concerns about a sharp decline in future well performance. The revised figures show 2025 well results are now roughly in line with prior-year levels rather than showing a steep drop, which supports confidence in Chevron’s long-term Permian production outlook. In particular, Chevron’s Delaware wells now compare favorably to peers on a productivity-per-foot basis, bolstering the company’s perceived depth and quality of inventory.

Jungwirth also underscores that Chevron’s Permian production is tracking in line with guidance, and the company believes it can sustain about 1 MMBoe/d from the basin through 2040, with the potential for additional growth. This operational visibility is paired with a strong free cash flow profile and a robust program of cash returns to shareholders, which he views as attractive for investors. Furthermore, Chevron’s large, royalty-advantaged Permian position, combined with the ramp-up of major international projects such as TengizChevrOil (TCO) and developments in the Gulf of Angola (GoA), is expected to support competitive production and cash flow growth over the decade. Together, these factors justify his Outperform (Buy) rating on Chevron’s stock.

In another report released today, TipRanks – Anthropic also upgraded the stock to a Buy with a $188.00 price target.

Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVX in relation to earlier this year.