Chevron (CVX) stock trades at $187.37, up 47% over the past year, as a Gulf of Mexico oil discovery and a string of analyst upgrades keep the energy giant in focus.
The company confirmed a discovery at the Bandit prospect, located about 125 miles south of the Louisiana coast. The well, operated by Occidental Petroleum, hit oil-bearing Miocene sands in Green Canyon Block 680.
Chevron holds a 37.125% working interest in the well. Occidental leads with 45.375%, and Woodside Energy holds the remaining 17.5%.
Kevin McLachlan, Chevron’s Vice President of Exploration, said the find “reinforces the high-quality opportunities in the prolific deepwater Gulf of America.” The co-owners are now reviewing results to decide on next steps.
The Bandit well has potential for subsea tie-backs to a nearby Occidental-operated facility, which could lower development costs if the partners choose to move forward.
Mizuho raised its price target to $225 from $217 on Thursday, maintaining an Outperform rating. The firm said Q1 2026 earnings came in around 60% below Wall Street estimates due to commodity price timing effects — but added that the key drivers for free cash flow growth in the rest of 2026 are still in place.
Mizuho pointed out that Chevron has less upstream exposure to the Middle East than peers like Exxon, and more exposure to Pacific Rim refining. The firm also noted that CP Chem earnings could rise given dislocations in the Middle East petrochemical market.
Earlier, Bernstein raised its target to $216 from $194, keeping an Outperform rating as part of a broader oil price model update. Barclays also lifted its target to $180 from $172, maintaining Overweight, citing higher oil price estimates and sector cash flow tailwinds.
UBS held its Buy rating with a $212 target, pointing to tightness in global LNG supply following disruptions at QatarEnergy’s Ras Laffan complex.
Chevron’s preliminary Q1 2026 guidance flagged timing effects that could hit earnings and cash flow by $2.7 billion to $3.7 billion after tax. The impact is expected to fall mainly on the Downstream segment and unwind in future periods.
On operations, key assets including TCO and Israel LNG that were offline in Q1 are back up and running. Mizuho said remaining headwinds at the Wheatstone LNG project in Australia should be resolved within weeks.
On the leadership front, Daniel Woodall will take over as Chief Health, Safety, and Environment Officer effective May 1, 2026. John Hess has also joined the board following Chevron’s acquisition of Hess Corporation, though he does not meet NYSE independence standards due to acquisition-related dealings.
Jim Cramer, who has long backed the stock, reiterated his view this week: “Chevron is the one, because Michael Wirth is indeed leveraged all over the world.”
Chevron has raised its dividend for 38 consecutive years and currently yields 3.74%.
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