TLDR
- Chevron confirmed an oil discovery at the Bandit prospect in the Gulf of Mexico, operated by Occidental Petroleum in Green Canyon Block 680.
- Mizuho raised its CVX price target to $225 from $217, keeping an Outperform rating, citing strong free cash flow drivers for the rest of 2026.
- Q1 2026 earnings came in roughly 60% below Street expectations due to timing effects from volatile commodity prices tied to the Middle East conflict.
- Bernstein raised its target to $216 and Barclays lifted its target to $180, both maintaining positive ratings on the stock.
- Jim Cramer reiterated his bullish stance on CVX, pointing to CEO Michael Wirth’s global leverage as a key reason to hold the stock.
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.
Analyst Targets Move Higher
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.
Q1 Guidance and Operations
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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