3 Best Geothermal Stocks To Invest In

In this article, we discuss 3 of the best geothermal stocks to invest in. If you want to go through our detailed analysis of the geothermal industry and see more stocks in this selection, check out the 6 Best Geothermal Stocks To Invest In.

3. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 44 

Established in 1989, Chesapeake Energy Corporation (NASDAQ:CHK) specializes in the exploration and sustainable development of prominent assets within three major U.S. oil and gas regions: the Eagle Ford, Haynesville, and Marcellus Shales. The company is headquartered in Oklahoma City, a city often considered the largest “small town” in the industry, and it serves as the hub for significant natural gas and oil enterprises.

In a move towards a cleaner energy future, Chesapeake Energy Corporation (NASDAQ:CHK) announced on October 3 that it is collaborating with Eavor, a prominent geothermal technology-focused energy company, to initiate a feasibility study to evaluate the potential of geothermal energy at Joint Base San Antonio. This partnership is an outcome of the efforts by Chesapeake’s New Energy Ventures (NEV) team, established recently to assess new technologies and alternative energy solutions in pursuit of the company’s net-zero objectives.

By the end of this year’s second quarter, 44 out of the 910 hedge funds polled by Insider Monkey had held a stake in Chesapeake Energy Corporation (NASDAQ:CHK). Out of these, the largest shareholder is Howard Marks’ Oaktree Capital Management since it owns $615 million worth of shares.

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 73

Chevron Corporation (NYSE:CVX) is a prominent American multinational energy company with a primary focus on the oil and gas industry. Emerging as the second-largest direct descendant of Standard Oil, it was initially established as the Standard Oil Company of California. The company’s headquarters are situated in San Ramon, California, and it maintains operations across over 180 countries worldwide. The company collaborates with innovators, entrepreneurs, industry pioneers, and governmental entities to investigate opportunities, foster growth, and expand promising new technologies in the field of geothermal energy. Chevron Corporation (NYSE:CVX) established a joint venture with Baseload Capital to explore opportunities in the United States, with the initial project slated for launch in Nevada this year. Additionally, it is in collaboration with Mitsui Oil Exploration Co. Ltd to pilot an innovative geothermal technology in Japan. Furthermore, the energy giant has partnered with Pertamina, Indonesia’s largest energy company, to investigate the feasibility of powering a green hydrogen plant using geothermal energy.

As of October 26, the firm offers a quarterly dividend of $1.51 per share, yielding 3.93%. Impressively, the company has consistently increased its dividends for the last 36 years, benefiting its shareholders.

By the end of this year’s second quarter, 73 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Chevron Corporation (NYSE:CVX). Out of these, the firm’s biggest investor is Warren Buffett’s Berkshire Hathaway since it owns 123.12 million shares that are worth $19.37 billion.

The London Company Large Cap Strategy made the following comment about Chevron Corporation (NYSE:CVX) in its first quarter 2023 investor letter:

“Initiated: Chevron Corporation (NYSE:CVX) – CVX is an integrated energy and chemical producer. Its upstream segment explores for, produces, processes and transfers energy products. Its downstream segment refines and markets these products in addition to industrial plastics and fuel and lubricant additives. Among the major oil companies, CVX is the most levered to oil and gas production; it has one of the most successful exploration programs and among the best production profiles. CVX also has less exposure to the downstream business, which provides an above-peer operating margin profile and supports CVX’s return on invested capital. CVX has one of the strongest balance sheets in the oil industry with net debt/EBITDA of just 0.1x. The combination of its low cost positioning and strong balance sheet gives us greater confidence in downside protection despite its ties to a volatile commodity. We’re attracted to management’s rational approach to capital allocation, with consideration for the full cycle. In terms of capital allocation, CVX just announced a $75B share repurchase plan, and it pays a healthy 3.5% dividend. We have owned CVX in the past and it is the only Energy exposure in the Large Cap portfolio.”

1. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 109