Top 12 Oil and Gas Stocks To Invest In According to Hedge Funds

5. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 63

Chevron Corporation (NYSE:CVX) produces crude oil, natural gas, and many other essential products, and is the second-largest integrated energy company headquartered in the United States.

Chevron Corporation (NYSE:CVX) reported strong earnings for Q3 of 2024, with revenues reaching $50.67 billion, surpassing analysts’ expectations by $1.63 billion. The company also generated $9.7 billion in operating cash flow, up from $6.3 billion in the prior quarter. Additionally, it returned $7.7 billion to shareholders through dividends and share buybacks during the quarter. Chevron Corporation’s (NYSE:CVX) dividend growth streak spans over 37 years and supports an above-average dividend yield of around 4.5%, placing it on our list of the Dogs of the Dow Dividend Stocks to Invest In.

Chevron Corporation (NYSE:CVX) remains focused on innovation and the company announced in Q3 that it has started oil and natural gas production from the Anchor project in the deepwater US Gulf of Mexico, marking the successful delivery of high-pressure technology and representing a breakthrough for the energy industry.

Chevron Corporation (NYSE:CVX) is also investing to expand its operations in the Permian, Kazakhstan, and elsewhere, which will help fuel production growth through at least 2027. The company expects to increase its output in the region by 300,000 BOE/d by 2025. Growth is also set to come from its pending acquisition of Hess, as the deal will add complementary positions in the Gulf of Mexico and Southeast Asia while adding assets in the Bakken and offshore Guyana to its portfolio. It will also more than double the oil major’s free cash flow by 2027, assuming oil prices remain around the current level.