Gabelman Boosts Forecasts for Chevron and ExxonMobil

TD Cowen analyst Jason Gabelman has raised price forecasts for Chevron Corporation (NYSE:CVX) and ExxonMobil Holdings (NYSE:XOM). He maintains a Hold rating for Chevron and increased the price forecast from $205 to $215.

Gabelman expects Chevron to beat third-quarter estimates, despite a $1.50-per-share timing headwind. The analyst notes that the company has outperformed the quarter so far following its Venezuela expansion announcement, with the asset expected to be equity accounted going forward.

He estimates that it could generate about $1 billion in free cash flow once production reaches 600,000 boe/d. Gabelman also expects an update on Kilby following a permitting pause in Texas and progress on additional projects.

For ExxonMobil, the analyst maintained a Buy rating and boosted the price forecast from $168 to $180. He expects third-quarter results to beat consensus, supported by strong refining performance, while cash flow is also expected to exceed estimates despite a $2 billion timing headwind.