Oil workers aboard the Agbami floating production, storage and offloading vessel, operated by Chevron Corp., in the Agbami deepwater oilfield in Nigeria.
George Osodi | Bloomberg | Getty Images
BMO Capital initiated its coverage on Chevron with an outperform rating, citing the prospects of increasing oil production and profits in coming years.
The oil and gas company's stock is up 14 percent this year as of Monday's close and has a dividend yield of 4.2 percent.
"We believe Chevron has reached an inflection point and is entering a new era of higher-margin growth and decreasing pre-productive capital," analyst Brendan Warn wrote in a note to clients Monday.
"Chevron is increasingly leveraged to a recovery in the oil price environment."
