5 Best Natural Gas Stocks to Buy Now

In this article, we discuss the 5 best natural gas stocks to buy now. To read a detailed analysis of the natural gas industry, you can go directly to the 10 Best Natural Gas Stocks to Buy Now.

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 64

Chevron Corporation (NYSE:CVX) is an integrated oil and gas company headquartered in San Ramon, California. In the first quarter of 2023, the company produced 1.74 billion cubic feet of natural gas per day. It also started producing gas from its Western Australian project Gorgon Stage 2. Chevron Corporation (NYSE:CVX) owns 47% of the LNG project.

On May 22, Chevron Corporation (NYSE:CVX) announced its acquisition of PDC Energy, Inc. (NASDAQ:PDCE) in an all-stock deal. The company made the purchase at a 10% premium, valued at $72 per share or $6.3 billion. 

In the first quarter of 2022, Chevron Corporation (NYSE:CVX)’s shares were held by 64 hedge funds. Their total stake was valued at $23.65 billion.

The London Company 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.”