2. Chevron Corporation (NYSE:CVX)
Stake Value of Arosa Capital Management: $11,002,000
Percentage of Arosa Capital Management’s 13F Portfolio: 2.71%
Number of Hedge Fund Holders: 53
This March, Chevron Corporation (NYSE:CVX) topped the Dow Jones index and hit a new 52-week high after raising its stock buyback program to $5 billion to $10 billion annually, up from the company’s previous plans for $3 billion to $5 billion of annual repurchases. Chevron Corporation (NYSE:CVX) also confirmed on March 1, 2022, that the company will be acquiring Renewable Energy Group, Inc. (NASDAQ:REGI) for an all-cash transaction of $3.15 billion, at $61.50 per share.
On February 23, 2022, Cowen analyst Jason Gabelman raised his price target on Chevron Corporation (NYSE:CVX) to $140 from $133 and reiterated an Outperform rating on the shares.
Out of the 924 elite hedge funds being tracked by Insider Monkey, 53 held stakes in Chevron Corporation (NYSE:CVX) by the end of the fourth quarter of 2022. The total value of these stakes was in excess of $6.50 billion. This is compared to 51 positions in the prior quarter, with a total stake of $4.44 billion. The hedge fund sentiment for the stock is therefore positive.
Goehring & Rozencwajg Associates published its “Natural Resource Market Commentary” third-quarter 2021 investor letter. The firm shared its thoughts on Chevron Corporation (NYSE:CVX) in its third-quarter 2021 commentary. Here’s what they had to say:
“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 publically 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.”
