03:18 PM EST, 01/29/2025 (MT Newswires) -- Chevron ( CVX ) is expected to provide a near-term guidance as part of its Q4 earnings report later this week highlighting enhanced free cash flow projections for 2025 and 2026, RBC Capital Markets said Wednesday in a note.

The company is expected to highlight improving free cash flow, driven by the Permian Basin ramp-up and the earlier-than-expected start-up of the Future Growth Project at the Tengiz oil field in Kazakhstan.

Chevron ( CVX ) last week said its 50%-owned affiliate, Tengizchevroil, achieved its first oil at FGP, marking a significant milestone.

FGP, now the third processing plant at Tengiz, is expected to ramp up output to one million barrels of oil equivalent per day, with the expansion adding 260,000 barrels per day at full capacity.

RBC, which sees the Future Growth Project as a key positive catalyst, said the development strengthens Chevron's ( CVX ) investment case.

Chevron's ( CVX ) Q4 results are scheduled to be released on Friday.

The firm said the consensus estimate for Chevron's ( CVX ) Q4 earnings has declined by more than 10% since its last assessment in mid-December, mirroring the trend within the sector and reflective of the macroeconomic downturn. It expects Chevron ( CVX ) to report Q4 adjusted EPS of $2.16, compared with consensus of $2.15.

RBC has an outperform rating on the stock with a $175 price target.

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