Chevron’s Record Run Isn’t Over Yet, BMO Says

Chevron Corporation (NYSE: CVX ) is one of the largest integrated energy companies in the world. The stock has surged by almost 34% since the beginning of 2026 and closed at its all-time high of $211.78 per share on September 2. The strong gains are supported by soaring energy prices and solid earnings amid the Middle East disruptions, as well as the company's recent steps to further expand its solid foothold in Venezuela.

While there are now investor concerns of a potential pullback after a stock hits its record high, the analysts over at Wall Street expect Chevron's rally to continue. On September 3, BMO Capital analyst Phillip Jungwirth raised the firm's price target on CVX from $210 to $235, while reaffirming an 'Outperform' rating on the shares. The target boost implies a further upside of over 12% from the already all-time high levels.

The positive outlook comes as Chevron recently expanded its position in the world's largest oil reserves in Venezuela. The oil giant announced plans to invest more than $7 billion over the next five years to double its oil production in the country ​to about 600,000 barrels per day. BMO Capital believes that this strategic move has the potential to be a major contributor to the company's production and cash flows.

Chevron's Low-Cost Venezuela Opportunity:

Chevron has maintained a longstanding presence in Venezuela and continued operating in the country despite the sanctions under a special US license. Its relationship with PDVSA and valuable experience in the country's complicated regulatory environment puts it at a significant advantage compared to its competitors.

An output of around 600,000 bpd would contribute significantly to Chevron's upstream portfolio. More importantly, the company expects to keep total production costs to below $20 per barrel, meaning that the additional barrels could generate attractive margins even if global crude prices normalize.

This is particularly significant because the oil and gas company is simultaneously working to reduce costs all over its portfolio. Chevron recently stated that it remains on track to deliver its $3 to $4 billion structural cost reduction target by the end of 2026, while also expecting its shale ​production costs to fall by 25% per barrel due to efficiencies.

Notably, Chevron also clarified that the new agreements offer enhanced fiscal, commercial, and legal terms designed to protect its long-term investment, signaling tangible progress on addressing the challenges that previously constrained its expansion.