Overview

Bank of America reiterated its Buy rating on Chevron Corporation, maintaining a price target of $210 per share, as noted by analyst Jean Ann Salisbury.

Field Trip Insights

During a BofA‑organized site visit, analysts toured the Pascagoula refinery, the Anchor offshore platform, and the Deepwater Titan project, meeting with CFO Eimear Bonner, Downstream President Andy Walz, and Offshore President Brent Gros.

Refining Strategy

Chevron operates its five U.S. refineries under a centralized “one 1 mbd refinery” model, enabling crude‑slate optimization, particularly at Pascagoula, originally built for heavy sour Venezuelan crudes. The strategy has already benefited from increased Venezuelan crude input and provides capacity for additional volumes. Standardized turnarounds, streamlined procurement, and robot‑drone tank cleaning are now employed, and the company reports no crude‑sourcing issues at any U.S. refinery, including California where a Jones Act waiver offered assistance.

Offshore Operations

The Anchor offshore platform is exceeding expectations, with wells delivering stronger‑than‑anticipated performance. Chevron was drilling its sixth well at the time of the visit and has demonstrated unique high‑pressure, high‑temperature (HPHT) capability, becoming the first to reach 20,000 psi at Anchor. Only two drillships worldwide can achieve 20,000 psi HPHT, both designed with Chevron input. The team is pursuing low‑cost debottlenecking opportunities.

Market Outlook

BofA expressed surprise that Chevron has not outperformed peers year‑to‑date, given its upside potential from Venezuelan crude supply and limited exposure to the Middle East. The analyst noted increased conviction that the centralization strategy could provide a competitive advantage within the integrated oil and refining sector.

Recent Agreements

Chevron entered into an agreement with Texas Pacific Land to obtain resources for a power‑generation facility supporting a data centre. Additionally, Chevron signed a 20‑year power purchase agreement with Microsoft to develop a dedicated power facility for one of Microsoft’s data centres. Following these developments, UBS reiterated its Buy rating on Chevron.