Despite an underwhelming quarter, Barclays analyst Paul Cheng believes Chevron Corporation CVX 0.22% did well enough to demonstrate relative strength compared to peers Exxon Mobil Corporation XOM 0.01% and Royal Dutch Shell plc (ADR) (NYSE:RDS-A) (NYSE: RDS-B). According to Cheng, Chevron’s share price might find some support from investors rotating out of Shell and Exxon and into Chevron.

“As a result of their backlog of major projects start-up over the next 2-3 years, CVX should deliver one of the strongest production growth rates through 2018/2019 among the mega majors while generating substantially positive free cash flow,” Cheng explained.

Despite the positive long-term outlook, Barclays remains cautious on Chevron in the near term. Cheng estimates that the company will need $60–65/bbl Brent crude oil prices in 2017 to be cash flow neutral.

Barclays projects…

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