5 Oil Stocks Billionaires Are Loading Up On

4. Chevron Corporation (NYSE:CVX)

Number of Billionaire Investors: 15

Dollar Value of Billionaire Holdings: $22,911,447,333

Number of Hedge Fund Holders: 64

Chevron Corporation (NYSE:CVX) is a San Ramon, California-based integrated energy company founded in 1879. The company operates in several countries and has a diverse portfolio of oil and gas assets.

In an update issued to investors on June 1, Biraj Borkhataria at RBC Capital upgraded Chevron Corporation (NYSE:CVX) from a Sector Perform to an Outperform rating and increased the target price from $165 to $180. Analysts believe that the company’s recent acquisition of PDC Energy, Inc. (NASDAQ:PDCE) for $7.6 billion will create long-term value for Chevron Corporation (NYSE:CVX). The company’s strong growth prospects justify its inclusion in our list of the best oil stocks to buy, according to billionaires.

Here’s what Madison Funds said about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)