Here is Why Chevron (CVX) is a Top Choice Among Billionaire Investors

With 14 billionaire investors in the Insider Monkey database at the end of Q1 2025, Chevron Corporation (NYSE:CVX) is included among The 5 Energy Stocks Billionaires are Quietly Piling Into.

Here is Why Chevron (CVX) is a Top Choice Among Billionaire Investors

An aerial view of an oil rig at sea, the sun glinting off its structure.

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.

An absolute behemoth of the global oil industry, Chevron Corporation (NYSE:CVX) boasts the lowest breakeven levels in the sector at around $30 per barrel, more than 50% below the recent price point. As a result, the company projects that its upstream business will contribute $10 billion in incremental free cash flow next year if Brent Crude averages $70 per barrel, or $9 billion at an average of $60 per barrel.

Chevron Corporation (NYSE:CVX) also remains focused on capital discipline and reducing costs, given the current low-priced environment. The company is targeting $2 billion – $3 billion in structural cost savings by the end of 2026, and its CapEx budget for 2025 represents a $2 billion reduction from last year.

Chevron Corporation (NYSE:CVX) also continues to expand aggressively. Although its planned $53 billion acquisition of Hess has been held up by a legal claim, the oil giant remains confident and even spent $2.2 billion to buy nearly 5% of the outstanding shares of Hess in the first quarter of 2025.

Chevron Corporation (NYSE:CVX) is known for its high payouts, having returned a record $27 billion in cash to its shareholders in 2024 and increased its quarterly dividend by 4.9% to $1.71 per share in January. The company has been increasing its annual dividends for an impressive 38 years, putting it among the 11 Best Dividend Aristocrat Stocks to Invest in Now.

However, the slumping crude oil price is beginning to take its toll, and Chevron Corporation (NYSE:CVX)’s CFO announced in the Q1 earnings call that the company’s stock buybacks this year could be between $11.5 billion and $13 billion, which would be in the lower end of its guidance of $10 billion to $20 billion.

Chevron Corporation (NYSE:CVX) remains a favorite energy stock among billionaires, with Warren Buffett’s Berkshire Hathaway also holding a stake worth almost $20 billion in the company at the end of Q1 2025.

If you are curious about the current state of the global energy industry and its top performers according to billionaires, take a look at the complete video here.

While we acknowledge the potential of CVX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and 15 Best Large Cap Energy Stocks to Buy According to Hedge Funds

Disclosure: None.