Chevron Shares Reach New Highs on Key Oil Field Recovery

Shares of Chevron Corporation hit a fresh 52-week peak of $182.82 in the latest trading session. The energy giant is receiving a significant boost from the return to market of its crucial Tengiz oil field in Kazakhstan. Operations at the facility, which were halted following a serious fire in January, are now ramping up. Investors have rewarded this recovery, pushing the stock up approximately 20% since the start of the year.

In a separate but concurrent development, Chevron's board has declared an increased quarterly cash dividend. Shareholders will now receive $1.78 per share, up from the previous payout of $1.71. The ex-dividend date is set for February 17, with payment scheduled for March 10. On an annualized basis, this equates to a dividend of $7.12 per share, yielding roughly 3.9%.

Furthermore, the company has resolved a longstanding legal dispute in West Texas through a confidential settlement finalized in December 2025. The agreement, reached one month before a scheduled trial, involved the purchase of the 22,000-acre Antina Ranch in Crane County. The property had been at the center of allegations concerning leaking "zombie" oil wells and spills of produced water. Chevron confirmed the resolution, stating its continued commitment to complying with Texas regulations and working with officials on necessary remediation efforts.

Tengiz Field Production Ramp-Up

According to Reuters data, output at the Chevron-operated Tengiz field has now been restored to about 60% of its peak capacity. Current production is estimated at 550,000 barrels per day, with a full return to the normal rate of roughly 950,000 barrels per day anticipated by February 23.

This field is a linchpin for Kazakhstan, accounting for nearly 40% of the nation's total oil production. Its extended shutdown, which began after fires damaged power infrastructure on January 18, had severely constrained the country's oil exports, particularly via the Caspian Pipeline Consortium route to the Black Sea.

Should investors sell immediately? Or is it worth buying Chevron?

The resumption of operations is already making a measurable impact. Kazakhstan's total output of oil and gas condensate rose to 1.6 million barrels per day between February 1 and 8, a notable increase from the January average of 1.27 million barrels per day.

Diverging Analyst Perspectives

Market experts are offering mixed assessments of Chevron's current valuation following its recent rally.

HSBC analysts raised their price target on the stock to $180 from $169 on February 2. However, they simultaneously downgraded their rating from "Buy" to "Hold," arguing that the strong share price appreciation has already reflected much of the positive news. Analyst Kim Fustier cited market optimism related to Venezuela and higher oil prices as key drivers behind the recent advance.

In contrast, JPMorgan maintained a more bullish stance. The bank reaffirmed its "Overweight" rating while increasing its price objective to $181 from $176. Its analysts highlighted an attractive investment phase following the completion of the Hess merger and projected structural cost savings of $3 to $4 billion annually by 2026.

The combination of operational recovery in Kazakhstan, a higher shareholder payout, and the resolution of legal overhang provides multi-faceted support for Chevron's equity. The anticipated full restoration of Tengiz production by month's end is expected to further stabilize cash flow in the coming quarters.