Chevron begins production at Ballymore in Gulf of America

HOUSTON - Chevron Corporation (NYSE: CVX), the $242.7 billion energy giant with robust financial health according to InvestingPro analysis, has commenced oil and natural gas production from the Ballymore subsea tieback in the deepwater Gulf of America, marking a significant step in its efforts to boost regional output. The company aims to achieve a net production of 300,000 barrels per day of oil equivalent in the Gulf by 2026.

The Ballymore project is designed to deliver up to 75,000 gross barrels of oil per day through three wells tied back to Chevron’s existing Blind Faith facility, located three miles away. This development strategy allows Chevron to enhance production without the need for a new standalone offshore platform, optimizing development costs and shareholder returns. The company’s strong financial position, evidenced by its 4.96% dividend yield and 37-year streak of dividend increases, supports such strategic investments. (Currently trading below Fair Value)

Brent Gros, Chevron’s vice president for the Gulf of America, highlighted Ballymore’s completion on time and on budget, emphasizing the use of technology and efficiencies to produce energy with lower carbon intensity from the Gulf, which is known for its low carbon footprint in oil and gas production.

Chevron, a prominent leaseholder in the Gulf, continues to actively seek growth opportunities in the region. Since mid-2024, Chevron has brought online the Anchor and non-operated Whale projects and has initiated water injection at its Tahiti and Jack/St. Malo facilities to increase output.

Ballymore, situated in the Mississippi Canyon area approximately 160 miles southeast of New Orleans in around 6,600 feet of water, is Chevron’s first venture into the Norphlet trend of the Gulf. The project is estimated to have 150 million barrels of oil equivalent gross recoverable resources over its lifetime.

Chevron U.S.A. Inc., a subsidiary of Chevron, operates the Ballymore project with a 60 percent working interest, while co-owner TotalEnergies E&P USA, Inc. holds a 40 percent working interest.

The news of Ballymore’s production start is based on a press release statement from Chevron Corporation, which also outlines the company’s broader commitment to growing its oil and gas business while reducing the carbon intensity of its operations and expanding into new areas such as renewable fuels and emerging technologies. For deeper insights into Chevron’s financial health and growth prospects, investors can access comprehensive analysis and 12 additional exclusive ProTips through InvestingPro’s detailed research reports, part of their coverage of 1,400+ top US stocks.

In other recent news, Sumatrix reported a significant drop in revenue for the fourth quarter of 2024, with earnings falling to $10.4 million from $19.6 million in the same period the previous year. Despite the decline, the company remains optimistic about 2025, projecting record revenue and EBITDA. Sumatrix’s gross margin increased to 29% in Q4 2024, and the company maintains a strong cash position with $10.3 million on hand. Meanwhile, Chevron has finalized the sale of a 70% stake in its East Texas natural gas assets to TG Natural Resources LLC for $525 million. This transaction is part of Chevron’s strategic plan to streamline its portfolio and is expected to generate over $1.2 billion in value. Additionally, Chevron confirmed that oil production and delivery at its Tengizchevroil unit in Kazakhstan continue without interruption, despite operational halts at two terminal mooring points by the Caspian Pipeline Consortium. Kazakhstan’s oil production, although slightly reduced in early April, still exceeds the OPEC+ quota, potentially leading to further discussions within the alliance.

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