11 Best Undervalued Energy Stocks to Invest in Now

3. Chevron Corp. (NYSE:CVX)

Forward P/E Ratio as of April 10: 12.92

Number of Hedge Fund Holders: 81

Chevron Corp. (NYSE:CVX) engages in integrated energy and chemicals operations and operates in the Upstream and Downstream segments. The Upstream segment explores, develops, and produces crude oil and natural gas. The Downstream segment refines crude oil into petroleum products, markets crude oil, refined products, & lubricants, and manufactures & markets renewable fuels.

In 2024, the company’s Permian Basin operations exceeded expectations with production growth of about 18% compared to the year-ago period, which was another record for Permian production. Over the past 5 years, the company has delivered a CAGR of 16% in the Permian, which has been achieved through optimized pad and drilling designs, as well as completion improvements such as triple frac techniques.

This allows the company to reach these production levels with 40% fewer company-operated rigs than previously planned. Chevron Corp. (NYSE:CVX) now expects Permian production to reach one million barrels of oil equivalent per day in 2025. The Permian portfolio delivers superior returns due to royalty-advantaged acreage across all sub-basins, which contributes to both the top and bottom lines.