TD Cowen analyst Jason Gabelman on Monday raised price forecasts for Chevron Corporation (NYSE:CVX) and ExxonMobil Holdings (NYSE:XOM). Chevron: Analyst maintained a Hold rating and increased the price forecast from $205 to $215.
The analyst writes that Chevron has outperformed the quarter to date following its Venezuela expansion announcement, with the asset expected to be equity accounted going forward. Gabelman estimates it could generate about $1 billion in free cash flow once production reaches 600,000 boe/d.
50-per-share timing headwind. S.
Oil Refining And Business Groups Urge Trump To Reject Any Effort To Impose Ban On Diesel Exports Attention is also expected to remain on total cost of ownership (TCO), amid reports that a contract extension could require a large one-time payment and additional project equity, adds the analyst. Gabelman also expects an update on Kilby following a permitting pause in Texas and progress on additional projects, but does not expect Chevron to increase its buyback this quarter.
2 billion quarter over quarter, or remain flat excluding timing headwinds. 2 billion each, offset by higher production excluding Guyana and TCO, plus lower TCO withholding taxes, adds the analyst.
5 billion excluding timing impacts. 4 billion from the removal of estimated second-quarter trading benefits.
ExxonMobil: Analyst maintained a Buy rating and boosted the price forecast from $168 to $180. Exxon Mobil has underperformed during the Middle East conflict due to its outsized exposure to disrupted volumes, writes the analyst.
Gabelman expects third-quarter results to beat consensus, supported by strong refining performance, while cash flow is also expected to exceed estimates despite a $2 billion timing headwind. The analyst said he is watching for signs that Exxon may accelerate Permian production growth following a series of midstream agreements, including its deal with Targa Resources.
Attention will also focus on updates on Qatari LNG repairs and whether management remains comfortable with its concentrated LNG portfolio, adds the analyst. 3 billion of pressure.
S. gas realizations.
2 billion from lower costs. 1 billion due to weaker margins.
25 at the time of publication on Monday, according to Benzinga Pro data.
