Energy Sector Ideas

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Chevron (CVX) - >>> Chevron is a leading global energy company. It boasts a globally integrated oil and gas business that includes exploration and production assets, refining capabilities, and a chemicals business. The company’s large scale and integrated operations help it weather the volatility in the energy sector.

Chevron uses the cash flows generated from its legacy oil and gas operations to pay a growing dividend, repurchase shares, and invest in the future. Chevron increased its dividend for the 35th straight year in 2022, which means it more than qualifies as a Dividend Aristocrat. It also plans to buy back between $5 billion and $15 billion of its stock each year.

Part of Chevron’s investment in the future is on reducing its carbon emissions. The company is investing in carbon capture and storage technology and green hydrogen. In addition, it acquired Renewable Energy Group in 2022 for $3.15 billion. The deal will accelerate Chevron’s ability to achieve its goal of expanding its renewable fuels production capacity to 100,000 barrels per day by 2030.

Overall, Chevron aims to supply the fuels for today’s economy while building toward the lower-carbon fuels it requires in the future. The balance makes it an ideal choice for investors seeking a way to invest in the energy transition from fossil fuels to cleaner alternatives.

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https://www.fool.com/investing/stock-market/market-sectors/energy/


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