We recently published a list of 10 Best Geothermal Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other best geothermal stocks to buy according to hedge funds.
Geothermal stocks are companies that use heat from the earth to generate electricity, heating, and cooling. This comprises companies in geothermal energy production, exploration, and technology development.
The geothermal market is growing rapidly. On April 2, 2025, Dandelion Energy, a prominent private company specializing in home geothermal heating and cooling, announced a partnership with one of the nation’s largest homebuilders to integrate geothermal systems into over 1,500 new homes in Colorado over the following two years. The program’s goal, which is among the biggest residential geothermal deployments in American history, is to standardize geothermal heating and cooling in new construction. When compared to air-source heat pumps, homeowners may anticipate saving almost $30 million over the next 20 years due to lower energy expenditures and better efficiency. According to a recent Department of Energy report, the widespread use of geothermal heat pumps could reduce the need for 24,500 miles of additional grid transmission lines, which is comparable to crossing the United States eight times. Overall, the collaboration highlights a growing trend toward sustainable homebuilding and lower carbon footprints in residential buildings.
Governor of Colorado Jared Polis stated:
“Geothermal energy – the heat beneath our feet – is a clean energy option that will help save Coloradans money and protect our state for future generations. I’m very excited that Dandelion is building on Colorado’s leadership on geothermal by connecting more than 1,500 Colorado homes to low-cost heating and cooling. It’s good for Coloradans, for our air quality, and our economy,”
As we look forward, according to the International Energy Agency’s report, geothermal energy, which now meets less than 1% of worldwide demand, is anticipated to supply up to 15% of global power by 2050, with an anticipated capacity of 800 GW and approximately 6,000 TWh per year. Advancements in drilling technology, comprising hydraulic fracturing and horizontal drilling, might unlock geothermal resources at depths greater than 3 km, hence extending the global potential. In 2023, more than 75% of global geothermal capacity was utilized, greatly outperforming wind (30%) and solar (15%) in terms of capacity factor. Investment in geothermal energy could surpass $1 trillion by 2035 due to decreased costs and oil and gas sector expertise. Government support may reduce prices by 80% by 2035, putting geothermal on equal ground with solar and wind. There are still major obstacles to overcome, such as the lack of qualified workers, environmental effects, and delays in obtaining permits. The success of geothermal energy depends on governments streamlining procedures, offering incentives, and encouraging research to fulfill the world’s expanding demand for electricity.
As per Deloitte’s report, rapidly maturing Enhanced geothermal systems (EGS) capable of providing 24/7 baseload electricity by accessing deep heat reservoirs are benefiting from federal funding and cross-sector investment in technological advances such as new drilling techniques and extreme heat operations, as well as bipartisan support to accelerate projects. Technology companies are collaborating with developers to produce geothermal electricity, as well as with utilities to facilitate EGS deployments by offering a clean transition tariff to cover the costs and risks of implementing a new technology. Meanwhile, a utility inked the largest geothermal power purchase agreement, reaching 320 MW, to meet a public utility commission’s need to obtain carbon-free power 24 hours a day, seven days a week.
A tanker truck making its way through a refinery facility. .
Methodology
We sifted through online rankings to form an initial list of 10 Geothermal stocks. From the resultant dataset, we chose the top 9 stocks most favored by hedge funds, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have also included a pure-play private geothermal company and ranked it 10th on our list.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Investors: 81
Chevron Corporation (NYSE:CVX) is a fully integrated energy business with global operations in exploration, production, and refining. It is the second-largest oil business in the United States, producing 3.1 million barrels of oil equivalent per day, which includes 7.7 million cubic feet of natural gas and 1.8 million barrels of liquids per day.
Although Chevron Corporation (NYSE:CVX) is largely an oil and gas firm, it also invests in geothermal energy, ranking it third among the Best Geothermal Stocks. The business has been active in geothermal projects for decades, primarily in Indonesia and the Philippines. The firm is collaborating with Baseload Capital, Mitsui Oil, and Pertamina to develop revolutionary geothermal technologies that will allow it to extract energy from almost anywhere. Its pilot-to-project model seeks to reduce risk, commercialize, and scale geothermal for clean energy and the production of hydrogen. The business pairs modern closed-loop and upgraded geothermal technologies with traditional approaches to offer dependable, low-carbon energy alternatives.
The company recorded strong results in the fourth quarter of 2024, with revenue of $52.23 billion, a 10.7% growth over the same period last year. The revenue also beat Street expectations by more than $3.8 billion. This growth was primarily driven by a 7% surge in global production and a 19% spike in US output, both of which set new records for the year. In addition, Chevron Corporation (NYSE:CVX) generated approximately $8 billion in asset sales while still maintaining a strong financial position, with a net debt ratio of 10% at the end of the year. The firm’s financial position has remained steady over time, which has strengthened its dividend policy. In the fiscal year 2024, it generated $31.5 billion in operating cash flow and $15 billion in free cash flow.
Overall, CVX ranks 3rd on our list of best geothermal stocks to buy according to hedge funds. While we acknowledge the potential of CVX, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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