Chevron to Double Exploration Wells, Boost Spending 50%+ in 2027
CVX sits 39% above its 52-week low of $146.49.
Summary
Chevron's E&P VP Kevin McLachlan told the FT the company will drill 20 exploration wells next year, up from 10 two years ago, plus 5-6 appraisal wells, as part of a 50%-plus surge in spending. The move follows a 36% drop in conventional exploration spending to $1.82B between 2021-2025 and aims to reverse disappointing performance at the unit. McLachlan, recruited from TotalEnergies last year, highlighted hotspots including Namibia, Guyana, Guinea-Bissau, and Egypt, and noted Chevron has doubled its exploration acreage since 2024. This signals a strategic shift toward rebuilding the exploration portfolio after years of underinvestment, with potential long-term reserve replacement implications.
At the time of this announcement, CVX was trading at $203.85 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $402.4B. The 52-week trading range was $146.49 to $217.78. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.