We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Makes Chevron's Gulf of America Oil Bet So Compelling
Read MoreHide Full Article
Key Takeaways
Chevron targets 300,000 BOE/d from the Gulf of America by 2026, up 50% from 2020 levels.
New assets like Ballymore, Whale, and Anchor emphasize efficient, low-carbon deepwater production.
CVX is extending field life and margins through tech upgrades and smarter deepwater project designs.
Chevron Corporation (CVX - Free Report) is leaning heavily on the Gulf of America (GOA) to fuel its next wave of production growth. In April 2025, the company brought first oil online at Ballymore, a key asset expected to produce around 75,000 barrels per day once all three initial wells ramp up. Just months earlier, production began at Whale — another major deepwater project designed for 100,000 barrels of oil equivalent per day (BOE/d) at peak. With multiple phases still ahead, these developments represent the core of Chevron’s plan to reach 300,000 net BOE/d from the GOA by 2026 — a 50% jump from the 2020 levels.
Behind the numbers is a broader strategic shift. Chevron is combining decades of operational experience with new technologies to unlock deepwater resources more efficiently. Whale, for example, leverages a simplified facility design and energy-efficient systems to reduce emissions and cost per barrel. Similarly, the high-pressure Anchor platform — operational since August 2024 — is built to handle extreme conditions, with a resource base estimated at 440 million barrels of oil-equivalent. Together, these assets represent some of Chevron’s highest-margin, lowest-carbon barrels globally.
This push isn’t just about drilling more — it’s about drilling smarter. Chevron’s updated project models are helping it reduce costs, increase efficiency, and extend the life of its fields. For instance, the Tahiti platform, which has been producing since 2009, has since crossed 500 million barrels and could continue operating into the 2040s. Backed by more efficient designs and low-carbon intensity output, Chevron’s Gulf operations are positioned to remain a strong, high-margin part of its portfolio.
Some Other Supermajors Active in the GoA
Europe’s largest energy major Shell plc (SHEL - Free Report) is the largest operator in the GoA, known for pioneering deepwater oil and gas production. Its operations — like Perdido, Vito, Whale, and the upcoming Sparta — showcase advanced, cost-efficient technology. With lower-than-average emissions and a 40% cut in methane since 2016, Shell is pairing innovation with sustainability in one of the world’s most challenging offshore environments. Shell continues to lead with standardized designs, robotics and efficient subsea systems, keeping safety and environmental performance at the core of its offshore strategy.
Continental rival BP plc (BP - Free Report) is also one of the top oil producers in the GoA, operating major hubs, including Atlantis, Mad Dog and Thunder Horse. With $7 billion in investments through 2025, BP aims to exceed 400,000 BOE/d in production from the region by the end of the decade. BP is also unlocking deep resources through projects like Kaskida, using smart, replicable platform designs for future expansion.
CVX’s Price Performance, Valuation and Estimates
Shares of Chevron have lost more than 6% in the past year.
Image Source: Zacks Investment Research
From a valuation standpoint, Chevron’s forward 12-month P/E multiple stands at over 19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 4% and 1%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold).
Image: Shutterstock
What Makes Chevron's Gulf of America Oil Bet So Compelling
Key Takeaways
Chevron Corporation (CVX - Free Report) is leaning heavily on the Gulf of America (GOA) to fuel its next wave of production growth. In April 2025, the company brought first oil online at Ballymore, a key asset expected to produce around 75,000 barrels per day once all three initial wells ramp up. Just months earlier, production began at Whale — another major deepwater project designed for 100,000 barrels of oil equivalent per day (BOE/d) at peak. With multiple phases still ahead, these developments represent the core of Chevron’s plan to reach 300,000 net BOE/d from the GOA by 2026 — a 50% jump from the 2020 levels.
Behind the numbers is a broader strategic shift. Chevron is combining decades of operational experience with new technologies to unlock deepwater resources more efficiently. Whale, for example, leverages a simplified facility design and energy-efficient systems to reduce emissions and cost per barrel. Similarly, the high-pressure Anchor platform — operational since August 2024 — is built to handle extreme conditions, with a resource base estimated at 440 million barrels of oil-equivalent. Together, these assets represent some of Chevron’s highest-margin, lowest-carbon barrels globally.
This push isn’t just about drilling more — it’s about drilling smarter. Chevron’s updated project models are helping it reduce costs, increase efficiency, and extend the life of its fields. For instance, the Tahiti platform, which has been producing since 2009, has since crossed 500 million barrels and could continue operating into the 2040s. Backed by more efficient designs and low-carbon intensity output, Chevron’s Gulf operations are positioned to remain a strong, high-margin part of its portfolio.
Some Other Supermajors Active in the GoA
Europe’s largest energy major Shell plc (SHEL - Free Report) is the largest operator in the GoA, known for pioneering deepwater oil and gas production. Its operations — like Perdido, Vito, Whale, and the upcoming Sparta — showcase advanced, cost-efficient technology. With lower-than-average emissions and a 40% cut in methane since 2016, Shell is pairing innovation with sustainability in one of the world’s most challenging offshore environments. Shell continues to lead with standardized designs, robotics and efficient subsea systems, keeping safety and environmental performance at the core of its offshore strategy.
Continental rival BP plc (BP - Free Report) is also one of the top oil producers in the GoA, operating major hubs, including Atlantis, Mad Dog and Thunder Horse. With $7 billion in investments through 2025, BP aims to exceed 400,000 BOE/d in production from the region by the end of the decade. BP is also unlocking deep resources through projects like Kaskida, using smart, replicable platform designs for future expansion.
CVX’s Price Performance, Valuation and Estimates
Shares of Chevron have lost more than 6% in the past year.
From a valuation standpoint, Chevron’s forward 12-month P/E multiple stands at over 19X.
The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 4% and 1%, respectively, in the past 30 days.
The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.