3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Berkshire Hathaway’s Stake Value: $4,488,055,000
Dividend Yield as of February 21: 4.26%
Chevron Corporation (NYSE:CVX) is an American multinational energy company that specializes in the exploration for, and production of, oil and natural gas. In Q4 2021, Berkshire Hathaway increased its position in the company by 34%, which accounted for 1.35% of Warren Buffett’s portfolio. The holding company held shares worth roughly $4.5 billion in Chevron Corporation (NYSE:CVX).
On January 26, Chevron Corporation (NYSE:CVX) raised its dividend by 6% to $1.42 per share. The stock’s current dividend yield stands at 4.26%, as recorded on February 21. Chevron Corporation (NYSE:CVX) has been increasing its annual dividend consecutively for the past 35 years. On February 9, Barclays lifted its price target on Chevron Corporation (NYSE:CVX) to $148, with an ‘Overweight’ rating on the shares.
At the end of Q4 2021, 53 hedge funds tracked by Insider Monkey reported owning stakes in Chevron Corporation (NYSE:CVX), valued at over $6.5 billion. In comparison, 51 hedge funds held positions in the company in the previous quarter, with stakes valued at over $4.44 billion. Fisher Asset Management was one of the company’s leading shareholders in Q4, owning stakes worth $774.2 million.
Goehring & Rozencwajg Associates mentioned Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter. Here is what the firm had to say:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
