Chevron Expands Eastern Mediterranean Presence Amid Global Refining Capacity Shortage
Chevron is expanding its presence in the Eastern Mediterranean through seismic research off Greece's coast. According to Greek Environment and Energy Minister Stavros Papastavrou, Chevron will begin exploration this year after being awarded four offshore leases earlier this year. The oil giant already has assets in the region, including gas-producing fields off Israel and one in Cyprus.
The expansion is part of Chevron's efforts to increase its hydrocarbon reserves, which are expected to remain elevated due to a global shortage of refining capacity. This will boost Chevron's revenue and free cash flow in the short term.
Chevron's stock has risen 34% year-to-date, with an average analyst price target of $224, representing a 10% increase over its current price of $204. Twenty out of twenty-five analysts tracked by Yahoo rate the stock as 'Buy' or 'Strong Buy.'