5 Energy Stocks Funds Love Right Now

Chevron

Chevron (CVX) is another integrated oil name that fuelled gains for institutional investors last quarter. All told, the firm increased in value on funds' 13Fs by $16.21 billion, making it the second-favorite oil stock in mutual and hedge funds' portfolios in the final quarter of 2011.

In a very broad sense, the case for Chevron looks a whole lot like the one for Exxon Mobil right now. That's because they're both mammoth integrated oil supermajors with similar scale and operations. In the near-term, one benefit for Chevron is the fact that it has more of its production mix centered on high-priced oil rather than gas, an advantage that's at least in force for the time being.

>>Energy Stocks Bought and Sold by Hedge Funds

As with Exxon, Chevron's projects are spread across the globe, important diversification given the fact that oil production can be impacted on the whims of foreign leaders. Not concentrating production on a single region helps to ensure that the firm doesn't get shellacked from one geopolitical event.

From a financial standpoint, Chevron is in stellar shape, with $10 billion in debt more than offset by a $20 billion cash position. That's impressive for a capital intense business like oil exploration and production.

As the firm's financials reflect recent high oil prices, that cash should increase.

Chevron shows on lists of 15 Stocks to Ride the Energy Boom of the Next Decade and Large-Cap Dividend Stocks to Buy. I also featured it earlier this month in "5 Stocks to Trade for Breakout Gains."

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