Chevron is highlighted as one of the most promising energy stocks to buy now, with Wall Street analysts seeing an average upside potential of 31.53%. The company benefits from a strong global presence, low-cost assets, a 39-year streak of dividend growth, and a 4.09% dividend yield, alongside plans to repurchase $10 billion to $20 billion in stock annually. Chevron expects to grow free cash flow at a compound annual growth rate of more than 10% through 2030, assuming oil at $70 a barrel, driven by the Hess acquisition giving access to Guyana's assets and the Tengizchevroil expansion in Kazakhstan adding around $6 billion per year. The company also stands to gain from its operations in Venezuela, where its joint ventures with PDVSA produce about 260,000 barrels per day, with potential to increase output by about 50% within two years. The Meridian Hedged Equity Fund cited Chevron's capital discipline, Permian Basin efficiency, and the Hess integration as supporting durable free cash flow and shareholder returns.
Chevron CorpAnalyst upside estimate of 31.53%, strong dividend growth, and $10-20B annual buyback plan.
Hess acquisition mentioned as a key driver for Chevron's free cash flow growth.