Chevron Corp

Chevron Corporation (CVX) declined as oil prices retreated following a strong first quarter. However, we continue to appreciate CVX’s disciplined capital allocation, operational efficiency, and commitment to shareholder returns. Our focus on high-quality, financially disciplined businesses continues to provide the diversification and downside resilience that we believe are essential in an unsettled market.

Despite a challenging quarter where our energy holdings fell -17%, we believe in the long-term value of companies like Chevron Corporation. They own irreplaceable, long-lived, low-obsolescence assets, and we purchased their shares at a time of falling exploration budgets despite rising demand. We expect our patience to be rewarded in time as the market recognizes the intrinsic value of these hard assets.

Chevron Corporation, headquartered in Houston, Texas, is one of the world’s largest integrated energy companies, producing approximately 4 million barrels of oil equivalent per day. The company has a low-cost, oil-leveraged upstream portfolio with significant positions in the Permian Basin and Guyana. Under CEO Mike Wirth, Chevron emphasizes capital discipline and portfolio optimization, which includes the recent acquisition of Hess, enhancing its production visibility. We believe Chevron offers attractive total return potential over our three- to five-year investment horizon, driven by catalysts such as the completion of the Tengiz expansion and ongoing capital returns to shareholders.

Chevron Corporation is one of the world’s largest integrated energy companies, producing approximately 4 million barrels of oil equivalent per day. The company has a low-cost, oil-leveraged upstream portfolio anchored by advantaged positions in the Permian Basin and Guyana. Recent acquisitions, such as Hess, enhance Chevron’s long-term production visibility and strengthen its high-margin, long-duration asset base. With ongoing capital returns to shareholders through dividend growth and share repurchases, we believe Chevron offers attractive total return potential over our three-to-five-year investment horizon.

Chevron is mentioned as one of the top contributors to relative performance, but there is no explicit argument made about its future prospects or valuation.

Our positions within the energy complex, Chevron and Energy Transfer benefited from President Trump’s announced 25% tariff on potential buyers of Venezuelan crude which combined with US sanctions targeting China’s oil imports from Iran, caused concerns about a potential tightness in the global oil supply, leading to a rally in US energy stocks.

Our positions within the energy complex, Chevron and Energy Transfer benefited from President Trump’s announced 25% tariff on potential buyers of Venezuelan crude which combined with US sanctions targeting China’s oil imports from Iran, caused concerns about a potential tightness in the global oil supply, leading to a rally in US energy stocks.

Our positions within the energy complex, Chevron and Energy Transfer benefited from President Trump’s announced 25% tariff on potential buyers of Venezuelan crude which combined with US sanctions targeting China’s oil imports from Iran, caused concerns about a potential tightness in the global oil supply, leading to a rally in US energy stocks.

The letter discusses the broader energy market and the impact of geopolitical events on oil prices, including Chevron's operations in Venezuela. However, it does not provide a specific investment thesis or directional argument regarding Chevron itself.

The letter discusses the overall energy market and the impact of geopolitical events on oil prices, including the situation in Venezuela affecting Chevron's operations. However, there is no explicit directional argument made about Chevron itself.