Top 5 Oil and Gas Stocks To Invest In According To Hedge Funds

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 72

Chevron Corporation (NYSE:CVX) is involved in integrated energy and chemicals operations. The company’s activities span two segments – Upstream, covering exploration, development, production, transportation of crude oil and natural gas, as well as LNG operations; and Downstream, focusing on refining, marketing of petroleum products, renewable fuels, and petrochemicals manufacturing. Chevron Corporation (NYSE:CVX) is one of the top energy stocks to buy. 

On February 2, Chevron Corporation (NYSE:CVX) declared a $1.63 per share quarterly dividend, a 7.9% increase from its prior dividend of $1.51. The dividend is payable on March 11, to shareholders of record as of February 16. 

According to Insider Monkey’s third quarter database, 72 hedge funds were long Chevron Corporation (NYSE:CVX), compared to 73 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 110.2 million shares worth $18.6 billion. 

Ariel Focus Fund made the following comment about Chevron Corporation (NYSE:CVX) in its third 2023 investor letter:

“Also in the quarter, we initiated a position in Chevron Corporation (NYSE:CVX), the second largest integrated energy company in the U.S., operating in exploration, production and refining on a global scale. We view the company as competitively advantaged with a strong balance sheet, sustainable growth pathway and an effective management team. Going forward CVX expects improved cost efficiencies and production growth via its differentiated position in the Permian Basin and recent acquisition of Noble Energy. Additionally, management believes a combination of its new higher-margin projects along with operational improvements will drive a double-digit return of capital employed by 2027. Although oil and gas prices, which lay outside of the company’s control, ultimately dictate Chevron’s earnings and cash flow profile, the organization is laser focused on capital discipline. It is this lack of predictability, and potential fear of a global recession which presented us with an opportunity to initiate a position in this high barrier to entry producers at reasonable prices.”