Chevron (CVX) Gains Bullish Outlook as Exploration Spending Rises

Chevron Corporation (NYSE:CVX) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.

On February 17, Melius Research said Chevron Corporation (NYSE:CVX) could see upside as exploration activity picks up and the market overlooks its potential in Venezuela. The firm upgraded the stock to Buy and raised its price target to $205. That target suggests about 13% upside from current levels. Analyst James West pointed to Chevron’s renewed focus on expanding its exploration efforts. He expects stronger results, supported by a 50% increase in exploration spending and new talent brought in through the company’s acquisition of Hess.

He wrote that “The company has increased its acreage position by +50% with ten new basin entries over the past 2 years.” He also noted that Chevron is seeing fresh entry opportunities in Libya and Iraq. He said acquisitions in these regions are likely to happen at the asset or country entry level and that the opportunity set looks more attractive today than it did a decade ago.

Chevron is preparing for a busy exploration schedule. The company expects to drill between 10 and 15 exploration wells. Key areas include the Gulf of America, Libya, Namibia, Nigeria, Angola, Suriname, Brazil, and Guyana. These regions stand out as important targets for future growth.

West also highlighted additional exploration opportunities that could turn into major discoveries. These include Chevron’s recent re-entry into Libya and activity in the Sirte basin. He also praised the company’s leadership changes, noting that Chevron is elevating younger, internally developed leaders to guide its next phase of growth. He added that Chevron is in a strong position to benefit from potential upside in Venezuela, which could serve as another growth driver.

Chevron Corporation (NYSE:CVX) operates as an integrated energy company. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and develops technologies that support its operations and the broader energy industry.

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