10 Best Geothermal Stocks to Buy According to Hedge Funds

3. 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.