Chevron Raises Exploration Spending 50%, Gets Buy Upgrade and $205 Price Target
Melius Research upgraded Chevron to Buy and raised its price target to $205, suggesting about 13% upside after boosting exploration spending by 50%, adding ten new basin entries over two years. Chevron will drill 10-15 exploration wells in Libya, Brazil, Guyana and Nigeria while seeking growth from Venezuela.
1. Analyst Upgrade and Price Target
Melius Research upgraded Chevron to Buy and raised the price target to $205, implying roughly 13% upside potential. Analyst James West highlighted overlooked Venezuelan assets and recent leadership changes as additional growth catalysts.
2. Increased Exploration Budget and Basin Entries
Chevron boosted its exploration spending by 50% over two years, expanded its acreage position by 50% and added ten new basin entries. The influx of talent from the Hess acquisition supported this expanded exploration capacity.
3. Planned Drilling and Regional Opportunities
Chevron plans to drill 10-15 exploration wells in the Gulf of America, Libya, Namibia, Nigeria, Angola, Suriname, Brazil and Guyana, with additional upside expected from Venezuelan operations.