5 Most Profitable Natural Gas Stocks

4.  Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 72

Latest TTM Net Income: $25.46 billion

Chevron Corporation (NYSE:CVX) is a distinguished American multinational energy company with a primary focus on the oil and gas industry. Originating as the Standard Oil Company of California, it stands as the second-largest direct descendant of Standard Oil. The company is headquartered in San Ramon, California, and operates in more than 180 countries globally.

On October 27, the energy company announced a quarterly dividend of $1.51 per share, maintaining the same dividend amount as the preceding period. Noteworthy is the company’s consistent dividend growth over the past 36 consecutive years, underscoring a steadfast commitment to rewarding shareholders.

As of the conclusion of the third quarter of 2023, 72 hedge funds out of the 910 included in Insider Monkey’s database held positions in Chevron Corporation (NYSE:CVX). Among these, Warren Buffett’s Berkshire Hathaway emerged as the largest investor, with ownership of 110.2 million shares valued at $18.59 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.”