3. Chevron Corporation (NYSE:CVX)
Huber Capital Management’s Stake Value: $7,061,000
Percentage of Huber Capital Management’s 13F Portfolio: 1.82%
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) is a California-based company that is engaged in energy, chemical, and petroleum operations worldwide. Huber Capital Management elevated its stake in Chevron Corporation (NYSE:CVX) by 12% in Q3 2021, holding 69,600 shares of the company, worth over $7 million. The stock accounts for 1.82% of the fund’s total 13F investments.
On January 28, Chevron Corporation (NYSE:CVX) posted earnings for the fourth quarter. The company announced an EPS of $2.56, missing consensus estimates by $0.56. Chevron Corporation (NYSE:CVX)’s revenue for the period jumped 90.64% from the prior-year quarter, totalling $48.13 billion, surpassing estimates by $2.83 billion.
Chevron Corporation (NYSE:CVX) declared on January 26 a $1.42 per share quarterly dividend, which is a 6% increase from its prior dividend of $1.34. The dividend is payable on March 10, to shareholders of record on February 16.
Cowen analyst Jason Gabelman raised the price target on Chevron Corporation (NYSE:CVX) on January 31 to $133 from $122 and kept an Outperform rating on the shares. The analyst stated that the near-term stock performance could be uninspiring although the upcoming analyst day could be positive, but raised his price target due to higher oil prices.
According to the hedge funds monitored by Insider Monkey, 51 funds were bullish on Chevron Corporation (NYSE:CVX), with collective stakes equalling $4.44 billion. Billionaire Warren Buffett’s Berkshire Hathaway held the largest position in Chevron Corporation (NYSE:CVX), with 28.70 million shares worth $2.91 billion.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“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 publicly 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.”
