Chevron's Big Projects Start Paying Off And There's More Ahead, Analyst Says

Core Insights - Chevron Corporation reported stronger-than-expected third-quarter results, driven by higher upstream production and refining margins, with newly integrated Hess assets enhancing output [1] - The company is on track to exceed synergies ahead of schedule, with key projects like Tengiz and the Permian contributing to growth, indicating a solid foundation for increasing shareholder returns [1] Earnings Performance - Chevron's adjusted earnings were $1.85 per share, a decrease from $2.51 year-over-year but above the consensus estimate of $1.71 [3] - U.S. production rose by 27% year-over-year, while global production increased by 21% in the quarter [3] Analyst Perspective - Bank of America Securities analyst Jean Ann Salisbury reaffirmed a Buy rating on Chevron with a price target of $183 following the earnings results [2] - The company's project execution remains strong, with legacy production up by 195 thousand barrels per day (kbd) sequentially, positioning it to meet the high end of its 6%-8% fiscal 2025 growth target excluding Hess [4] - The Permian region saw production growth due to moderated capital expenditures, reflecting operational efficiencies and a potential plateau above 1 million barrels of oil equivalent per day (Mboed) [5] Market Reaction - Chevron shares were trading lower by 1.52% to $155.33 at the last check [5]