📌 Chevron vs Exxon: Diverging Paths in Energy ⚖️

[madmax]

BofA kept a Neutral rating on Exxon (XOM) while raising its target to $120 (from $118). Both Exxon and Chevron now have similar upstream portfolios — 40% shale, 25% conventional, and ~15% deepwater/LNG.

But the outlooks diverge: Exxon’s FCF is projected to rise more gradually, from $8.2 in 2024 to $10.6 by 2027, continuing through 2030. Meanwhile, Chevron may expand its downstream exposure via CPChem, balancing its upstream tilt.

Investors may favor Exxon for stability, but Chevron’s discount and sharper cash flow growth could offer stronger upside potential.