13 Best Energy Stocks to Buy Right Now

9. Chevron Corporation (NYSE:CVX)

No. of Hedge Funds Holders: 81

Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives. The oil and gas giant owns five US fuel refineries and boasts a network of Chevron and Texaco service stations.

Chevron Corporation (NYSE:CVX) battled several headwinds in the first quarter, including lower oil prices, weaker refined product margins, and unfavorable tax and foreign exchange effects. As a result, the oil and gas giant’s adjusted EPS fell from $2.93 in the year-ago period to $2.15 in Q1 2025, but is still above market expectations by $0.03. However, the company’s revenue of $47.61 billion fell below estimates by almost $783.4 million. Chevron’s production remained roughly flat in the period as asset sales offset the growth from Kazakhstan, the Permian Basin, and the Gulf of America.

A key strength of Chevron Corporation (NYSE:CVX) is its robust balance sheet, with a net debt ratio of 14%, well below its target range of 20% to 25%. The company generated $7.6 billion of cash flow from operations and $3.7 billion of free cash flow in the first quarter. It also reaffirmed its commitment to shareholders and returned $6.9 billion during the period. However, given the shaky economic outlook faced by Big Oil, Chevron is ensuring its resilience by slowing down the pace of its share repurchase program. The company’s share repurchases could be between $11.5 billion and $13 billion in FY 2025, which would be at the lower end of its guidance of $10 billion to $20 billion.

It must be kept in mind that Chevron Corporation (NYSE:CVX) also spent $2.2 billion to buy nearly 5% of the outstanding shares of Hess, reflecting its confidence to close that needle-moving acquisition this year.

CVX was recently included in our list of the 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds.