10:21 AM EDT, 08/04/2025 (MT Newswires) -- Chevron's ( CVX ) acquisition of Hess in July strengthens the oil and gas company's business, growth and portfolio duration, analysts at Morgan Stanley said in a note to clients Monday.

The deal is expected to be 3.5% accretive to 2026 free cash flow per share, boosting the 2025-2030 cash flow compound annual growth rate from 3% to 5% and free cash flow from 6% to 8%, said analysts.

Chevron's ( CVX ) acquisition of Hess, cost-cutting plans and its Tengizchevroil joint venture, which operates the Tengiz oil field in Kazakhstan, should help reduce the gap in stock growth between Chevron ( CVX ) and Exxon Mobil ( XOM ) for the next two to three years, analysts added.

"Exposure to rising production in Guyana will play an important role in addressing [the company's organic growth potential post 2026], extending and enhancing the company's growth outlook for the years ahead," the analysts also wrote.

Morgan Stanley resumed coverage of Chevron ( CVX ) at overweight rating with a $174 price target.

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