10 Best American Energy Stocks To Buy According to Hedge Funds

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors: 63

Chevron Corporation (NYSE:CVX) is a global energy business that engages in exploration, production, and refining. It produces 3.1 million barrels of oil equivalent per day, which includes 1.8 million barrels of liquids and 7.7 million cubic feet of natural gas per day, making it the second-largest oil company in the United States. Production occurs throughout Europe, Africa, Asia, Australia, South America, and North America. It can refine 1.8 million barrels of oil per day at its refineries in the US and Asia. At the end of 2023, proven reserves were 11.1 billion barrels of oil equivalent, which included 30.4 trillion cubic feet of natural gas and 6.0 billion barrels of liquids. CVX has surged by over 8% since the start of 2024, coming through as one of the best American stocks to buy.

Despite a decline from the previous year, Chevron Corporation (NYSE:CVX)’s third-quarter adjusted earnings were above market forecasts. The Permian Basin’s record output propelled the company’s 7% YoY growth in net oil-equivalent production. The company also started production on significant Gulf of Mexico projects in the United States. It announced a $6.5 billion Canadian asset sale and repurchased $4.7 billion worth of shares during the quarter. By the end of 2026, the company intends to cut structural expenses by $2-3 billion.

On November 4, 2024, RBC Capital raised Chevron Corporation’s (NYSE:CVX) price target to $175 from $170, maintaining an Outperform rating on the stock. Although there is still uncertainty surrounding the Hess (HES) deal, the company’s remarks regarding peak Permian capex in 2024 should bode well for free cash flow into 2025 and beyond, the analyst tells investors in a research note. Its Q3 results included a strong operational performance that culminated in an earnings and cash flow beat relative to market expectations.

Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 118,610,534 shares worth $17.47 billion as of Q3.