How Chevron’s Multi-Year Seismic Deal Could Shape TGS (OB:TGS) Investor Expectations

• On November 5, 2025, Chevron announced it had signed a three-year capacity agreement with TGS for marine streamer and ocean bottom node (OBN) seismic acquisition services, including an immediate start with the St Malo 4D OBN reservoir monitoring project in the Gulf of Mexico.
• This agreement not only brings substantial new business and a firm multi-year commitment to TGS, but also deepens collaboration on data technology and geophysical innovation between the two companies.
• We'll explore how this major Chevron partnership and expanded contract horizon could influence TGS's investment narrative and future outlook.

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TGS Investment Narrative Recap

To be a TGS shareholder, you typically need to believe that demand for seismic data and services will rebound as energy exploration activity recovers and digital offerings gain traction, outweighing the company’s revenue sensitivity to oil prices and reliance on large client deals. The multi-year Chevron agreement, while positive in terms of backlog and data technology collaboration, does not fully resolve TGS’s most immediate risk: concentrated customer exposure and potential sales cyclicality.

Of the recent announcements, the October 20th OBN acquisition contract in the Gulf of America stands out as directly relevant. That deal, which will commence promptly and is embedded within the new Chevron arrangement, meaningfully extends TGS’s activity pipeline and feeds into the short-term catalyst of heightened exploration demand, though revenue lumpiness remains a consideration. Despite the contract wins, investors should be aware that persistent client concentration could mean...

Read the full narrative on TGS (it's free!)

TGS is projected to reach $1.5 billion in revenue and $226.2 million in earnings by 2028. This entails a yearly revenue decline of 5.7% and an earnings increase of $201.2 million from the current earnings of $25.0 million.

Uncover how TGS' forecasts yield a NOK87.90 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Six fair value assessments from the Simply Wall St Community span from NOK 61.77 to NOK 427.52, reflecting vastly different outlooks. Strong new contracts may reduce volatility but revenue swings tied to large customers are still a key factor for your decision making.

Explore 6 other fair value estimates on TGS - why the stock might be worth 34% less than the current price!

Build Your Own TGS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TGS research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free TGS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TGS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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