Chevron (NYSE: CVX) was already on track to have a stellar year well before the war with Iran sent crude prices soaring. The oil giant completed several major growth capital projects last year and closed its needle-moving acquisition of Hess. These growth drivers, along with its cost-savings initiatives, positioned the oil giant to produce an additional $12.5 billion of free cash flow at $70 oil this year.
With crude prices now in the $90s, Chevron is on track to produce an even bigger gusher of free cash flow. Higher oil prices aren't the only major additional catalyst for the oil stock this year. Chevron recently added two more drivers to its high-octane growth engine.
Here's a look at how they could enhance its long-term growth profile. Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
Continue » Chevron is a leader in the Gulf of Mexico (also known as the Gulf of America in the U.S.). It's the largest leaseholder with about 1.7 million net acres. Last year, Chevron and its partners started production from the Anchor, Ballymore, Stampede, and Whale fields in the Gulf.
These recently completed projects have the company on track to produce 300,000 barrels of oil equivalent per day from the region this year. That growing production is helping fuel the expected surge in its free cash flow. The oil giant and its partners continue to find more oil in the Gulf.
Occidental Petroleum recently announced a discovery at its Bandit prospect in the Gulf. Chevron has a 37.1% interest in Bandit (Occidental holds 45.4% and Woodside Energy owns 17.5%). The discovery is adjacent to another Occidental-operated facility and others in the region.
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