Chevron rises in premarket on Venezuela investment headlines
Chevron shares rose more than 2% in Monday premarket trading as traders reacted to headlines about a potential major U.S. investment push in Venezuela's oil sector.
Chevron Corporation (NYSE: CVX ) shares are up more than 2% during Monday’s premarket session as traders react to plans massive Venezuela investment headlines even with S&P 500 futures down 0.4%.
Eyes Major Venezuela Investment President Donald Trump recently disclosed an agreement allowing U.S. companies to participate in developing Venezuela’s oil resources.
Venezuelan official Delcy Rodríguez said the 25-year deal targets an increase in crude production to 1.5 million barrels per day.
U.S. companies are expected to invest more than $100 billion in Venezuela, while the government could collect over $209 billion in taxes.
Chevron, a major U.S. player in Venezuela, is expected to benefit significantly and could announce plans to expand its operations this week, according to The New York Times.
The agreement faces political opposition in Venezuela, while Chevron would need to commit billions of dollars to develop the assets.
Read Also: Trump Family Businesses Are Among Iran War’s Winners as Oil and Defense Spending Surge: Report GasBuddy analyst Patrick De Haan said President Donald Trump’s Venezuela oil deal could help offset supply shortages linked to the Iran war, but cautioned that bringing Venezuelan oil to market would require multi-billion-dollar investments and would not have an immediate impact on gas prices.
Venezuela’s Delcy Rodriguez Unveils 25-Year US Oil Deal Targeting Yesterday, Venezuelan interim President Delcy Rodriguez said a new 25-year energy agreement with the U.S. aims to raise crude production to 1.5 million barrels per day while preserving national sovereignty over resources.
The deal covers 17 strategic oilfields and eight greenfield blocks, compared with current output of about 1.25 million bpd.
Rodriguez estimates the agreement could generate about $209 billion for Venezuela over 25 years, based on a $65-per-barrel oil price, with roughly $19 per barrel going directly to the state.
Despite having the world’s largest proven oil reserves, Venezuela’s output remains constrained by years of underinvestment, mismanagement and sanctions.
CVX Earnings Preview And Wall Street Price Targets Looking further out, the next major catalyst for the stock arrives with the October 30, 2026 (estimated) earnings report.
EPS Estimate: $4.69 (Up from $1.85 YoY) Revenue Estimate: $56.79 Billion (Up from $49.73 Billion YoY) Valuation: P/E of 19.4x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $212.29.
Recent analyst moves include: Morgan Stanley: Overweight (Raises Target to $218.00) (Aug.
19) Barclays: Equal-Weight (Lowers Target to $208.00) (Aug.
17) TD Cowen: Hold (Raises Target to $205.00) (Aug.
5) Top ETFs Holding Chevron Stock (CVX) iShares Core High Dividend ETF (NYSE: HDV ): 5.93% Weight First Trust Morningstar Dividend Leaders Index Fund (NYSE: FDL ): 7.90% Weight State Street SPDR S&P North American Natural Resources ETF (NYSE: NANR ): 6.64% Weight Significance: Because CVX carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CVX Stock Price Action In Premarket Trading CVX Stock Price Activity: Chevron shares were up 2.39% at $206.69 during premarket trading on Monday, according to Pro data.
Photo via Shutterstock