Bank of America has maintained Chevron Corporation as its preferred pick among integrated oil and refining companies, upholding a Buy rating and a $210.00 price target in a note authored by analyst Jean Ann Salisbury.
The research firm's view follows a hands-on field visit hosted by Chevron that covered multiple Gulf Coast assets and offshore operations. During the trip, BofA visited the Pascagoula refinery, the Anchor offshore platform, and the Deepwater Titan facility, and held discussions with several senior Chevron executives, including Chief Financial Officer Eimear Bonner, Downstream President Andy Walz, and Offshore President Brent Gros.
Central to BofA's positive assessment is Chevron's approach to U.S. refining. The company has adopted a centralized model across its five domestic refineries, treating them operationally as "one 1mbd refinery." According to the bank, this framework has delivered greater flexibility in optimizing crude slates at individual facilities. Pascagoula - originally designed to process heavy sour crudes from Venezuela - has already taken on increased Venezuelan crude volumes and retains headroom for further supply. The centralized setup has also produced standardized turnaround schedules, more streamlined procurement, and the dissemination of best practices across sites, including the use of robot drones for tank cleaning.
BofA noted that Chevron has not experienced crude sourcing problems at any of its U.S. refineries. The firm specifically cited assistance provided to Chevron's California operations in the form of a Jones Act waiver.
The Anchor offshore platform drew particular attention for outperforming expectations. Wells there have reportedly delivered stronger-than-forecast results, and Chevron was drilling a sixth well at the time of the visit. The company has demonstrated capabilities in high-pressure, high-temperature operations - BofA highlights that Chevron reached 20,000 PSI at Anchor, a milestone the bank attributes to the company. The note further states that only two drillships worldwide can reach 20,000 HPHT levels, and both were designed with Chevron input. Chevron's offshore team is also pursuing low-cost debottlenecking opportunities to enhance returns.
Despite these operational positives - including upside tied to Venezuelan crude and relatively low exposure to the Middle East - BofA said it was surprised Chevron had not significantly outperformed peers year-to-date. The analyst said the field trip increased conviction that Chevron's centralized refining strategy could become a competitive differentiator within the integrated oil and refining sector.
In a separate business development noted by BofA, Chevron has agreed with Texas Pacific Land to obtain resources in support of a power generation facility intended for a data center. The company also signed a 20-year power purchase agreement with Microsoft to develop a dedicated power facility for one of Microsoft's data centers - a deal that the note said prompted UBS to reaffirm its Buy rating on Chevron.
Contacts on the trip: CFO Eimear Bonner; Downstream President Andy Walz; Offshore President Brent Gros.