Chevron Commits A$3 Billion to Gorgon Stage 3 Development

Written by Emily J. Thompson, Senior Investment Analyst

CVX.N+0.44%

SHEL.N-0.83%

Source: Newsfilter

Updated: 3 hour ago

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Source: Newsfilter

Investment Decision: Chevron's Australian unit announced a final investment decision for the A$3 billion (approximately $1.98 billion) Gorgon Stage 3 development, which will link the Geryon and Eurytion gas fields to existing infrastructure, significantly enhancing the project's production capacity.
Production Maintenance: This development will maintain production levels at Gorgon, ensuring a long-term supply of natural gas for Western Australian households and industries while providing liquefied natural gas to international customers in Asia, further solidifying Chevron's position in the global energy market.
Market Impact: The Gorgon project has the capacity to produce 300 terajoules of gas per day and 15.6 million tonnes of LNG annually, meeting the demands of the Western Australian market and expected to enhance Chevron's market share and competitiveness in the Asia-Pacific region.
Joint Venture Structure: The Gorgon project is operated by a joint venture among Chevron, ExxonMobil, and Shell, collectively holding about 97.3% of the stake, demonstrating a strong alliance among major energy companies in the gas sector, which enhances the project's stability and sustainability.

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Analyst Views on CVX

Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 177.50 USD with a low forecast of 158.00 USD and a high forecast of 204.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

16 Analyst Rating

13 Buy

3 Hold

0 Sell

Strong Buy

Current: 151.590

Low

158.00

Averages

177.50

High

204.00

Current: 151.590

Low

158.00

Averages

177.50

High

204.00

Wells Fargo

Sam Margolin

Overweight

maintain

$190 -> $196

2025-11-14

Reason

Wells Fargo

Sam Margolin

Price Target

$190 -> $196

2025-11-14

maintain

Overweight

Reason

Wells Fargo analyst Sam Margolin raised the firm's price target on Chevron to $196 from $190 and keeps an Overweight rating on the shares. The firm says the company's investor day was positive. The commodity environment is probably influential to immediate market impact, but Chevron materials/comments underpin free cash flow/dividend growth via emerging and mature assets, Wells adds.

Mizuho

Outperform

maintain

$191 -> $204

2025-11-13

Reason

Mizuho

Price Target

$191 -> $204

2025-11-13

maintain

Outperform

Reason

Mizuho raised the firm's price target on Chevron to $204 from $191 and keeps an Outperform rating on the shares following the investor day. The firm says a lack of details on the Permian power project for artificial intelligence data centers and an unchanged $10B-$20B per ear range for buybacks overshadowed Chevron's better than expected free cash flow growth.

Morgan Stanley

Overweight

maintain

$177 -> $180

2025-11-13

Reason

Morgan Stanley

Price Target

$177 -> $180

2025-11-13

maintain

Overweight

Reason

Morgan Stanley raised the firm's price target on Chevron to $180 from $177 and keeps an Overweight rating on the shares following the company's investor day, which showcased "low-risk plans" to grow free cash flow and EPS at a greater than 10% compound annual growth rate though 2030. Capex guidance was trimmed by $1B to $18B-$21B, while cost reduction and Hess synergy targets were raised, the analyst noted.

Piper Sandler

Overweight

maintain

$169 -> $168

2025-11-13

Reason

Piper Sandler

Price Target

$169 -> $168

2025-11-13

maintain

Overweight

Reason

Piper Sandler lowered the firm's price target on Chevron to $168 from $169 and keeps an Overweight rating on the shares. The firm believes company analyst days rarely change expectations, and while Chevron's update was largely within the "fairway," Piper views the incremental disclosure as both positive at the margin, and relatively conservative. The firm acknowledges that some investor concerns are likely to linger for now on post-2030 growth, but says the investment case for large energy companies is largely focused on sustainability/growth of shareholder returns, and with a free cash flow/share CAGR of 15%/year from 2025-2030, Chevron remains a leader amongst its peers.

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About CVX

Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.

About the author

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Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.