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HELLENiQ ENERGY, together with Chevron, has signed lease agreements with the Greek state to explore four ultra-deepwater offshore blocks south of Crete and the Peloponnese, with Chevron holding a 70% operating stake and HELLENiQ ENERGY 30%, pending ratification by the Greek Parliament.
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This move extends Chevron’s upstream footprint in the Eastern Mediterranean, adding large frontier acreage to its portfolio at a time when energy security and supply diversification remain central policy priorities for the region.
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We’ll now examine how Chevron’s entry into ultra-deepwater exploration offshore Greece shapes its investment narrative, particularly around long-term upstream optionality.
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To own Chevron, I think you have to believe that large, low cost hydrocarbon projects can keep generating strong cash flows even as the energy transition advances. The Greece ultra deepwater leases expand Chevron’s option set, but they do not materially change the near term picture, where the key catalyst remains efficient execution and integration of the Hess acquisition, and the biggest risk is ongoing exposure to large, capital intensive upstream projects in a decarbonizing world.
Among recent announcements, the completion of the Hess deal stands out as most relevant, because it also increases Chevron’s deepwater and frontier exposure through Guyana and the Bakken. Together with the new Greek acreage, this reinforces the company’s tilt toward long lived upstream assets, which can amplify both the upside from production and price cycles and the downside from execution missteps, regulatory shifts or weaker long term oil demand.
Yet even as Chevron adds high impact projects, investors should be aware that…
Read the full narrative on Chevron (it’s free!)
Chevron’s narrative projects $196.0 billion revenue and $21.8 billion earnings by 2028. This requires 1.2% yearly revenue growth and a $8.1 billion earnings increase from $13.7 billion.
Uncover how Chevron’s forecasts yield a $181.67 fair value, in line with its current price.
Twenty two members of the Simply Wall St Community see Chevron’s fair value anywhere between US$130 and about US$376 per share, with estimates spread across the entire range. When you compare that dispersion to the concentration of risk in large upstream projects and the energy transition, it underlines why you may want to weigh several different viewpoints before deciding how Chevron fits into your portfolio.