GE Vernova: Chevron agreement for on-site power generation a positive for GEV

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GE Vernova: Chevron agreement for on-site power generation a positive for GEV

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GE Vernova

Chevron agreement for on-site power

generation a positive for GEV

Reiterate Rating: BUY | PO: 1,310.00 USD | Price: 1,127.59 USD

The news: more on-site power generation for data centers 23 June 2026

On June 22, 2026, Chevron announced a 20-year power purchase agreement with Equity

Microsoft for the Project Kilby data center in Pecos, Texas. Totaling 2.7 gigawatts (GW)

of capacity, the project will be delivered in a phases. GE Vernova will provide the “a AndrewResearch ObinAnalyst

majority of the generation […] and associated electrical infrastructure” with Caterpillar BofAS

providing additional capacity. Chevron is expected to reach final investment decision by +1andrew.obin@bofa.com646 855 1817

year-end 2026. We reiterate our Buy rating on GEV given increased demand for grid and David Ridley-Lane, CFA

power generation equipment. Research Analyst

BofAS

+1 646 855 2907

david.ridleylane@bofa.comThree implications for investors

1) GE Vernova will be booking orders for turbines and electrification equipment from this Devin Leonard

Research Analyst

announcement. According to the US Energy Information Agency, the “balance of plant” BofAS

electrification equipment is ~20% of the gas turbine equipment costs. We think on-site +1 646 855 3698

devin.leonard@bofa.com

power generation for data center may need more electrical equipment to both buffer the

load profile (e.g., battery energy storage systems) and provide voltage/frequency

regulation (e.g., synchronous condensers).

2) The 20-year term suggests that on-site power generation has evolved from a short- Stock Data

term “bridge to grid” to a long-term co-existence. The longer duration may make larger Price 1,127.59 USD