10 Best Undervalued Energy Stocks To Buy According to Hedge Funds

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Investors: 63

Forward P/E Ratio as of December 16: 12.79

Chevron Corporation (NYSE:CVX) is one of the largest integrated energy companies in the world, headquartered in California. The company operates across the oil and gas value chain, including exploration, production, refining, and marketing. Chevron Corporation (NYSE:CVX) serves industrial and retail customers worldwide, providing fuels, lubricants, and petrochemicals.

Chevron Corporation (NYSE:CVX) is making significant progress on several major projects that are expected to drive production and cash flow growth in the coming years. The company’s high-pressure Anchor project in the Gulf of Mexico has started up, and water injection has begun to boost production at the Jack/St. Malo and Tahiti fields. These projects, along with others planned through 2025, are expected to increase Gulf of Mexico production to 300,000 barrels per day by 2026. At the Tengizchevroil (TCO) project in Kazakhstan, all four pressure boost facilities are now online, and the team is on track to begin start-up procedures in the first quarter of 2025.

Chevron Corporation (NYSE:CVX) has been actively divesting non-core assets and making strategic acquisitions. The company recently sold assets in Canada, Alaska, and Congo, which are expected to generate approximately $8 billion in proceeds before taxes. The company’s decision to divest these assets was driven by a desire to focus on assets that align more closely with its long-term strategic goals. Chevron Corporation (NYSE:CVX) is also expanding its CO2 storage portfolio, adding over 2 million acres offshore Western Australia, and continues to invest in advanced technologies such as drones, robotics, and digital to transform how it operates and maintains its facilities.