*The analytical material presented below is not an investment recommendation. We firmly believe that a significant portion of a portfolio should be allocated to fixed-income instruments. However, given clients’ interest in shares, we provide analytical reviews without recommending purchases.
The FGP project at Tengiz is nearing completion — and this is more than just checking a box. For Chevron, it marks the beginning of a new era: capital expenditures are falling, dividends are rising, and free cash flow is increasing by $6–7 billion per year. For the first time in a long while, the company may monetize its stake in TCO.
But that’s just the beginning. On the horizon is a potential acquisition of Hess and its assets in Guyana, where production costs are $28–32 per barrel. If the deal goes through, Chevron will gain access to one of the world’s most promising oil blocks and could grow to 4 million barrels per day.
The strategy of "shifting from mature assets to future cash machines" changes the very logic of growth. It’s no longer just about capital preservation — it’s a real expansion while maintaining its status as a dividend blue chip.
A detailed analysis of this investment case can be found in the new report from Teniz Capital Investment Banking below.