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$230 billion energy firm
CVX) is the financially fittest of the oil and gas supermajors. Chevron also sports a dividend yield of 3.36%, making it the higher-yielding of the two energy giants in the Dow. As the No. 2 oil company in the U.S., Chevron produces around 2.6 million barrels of oil equivalent each day -- and sports proven reserves of 11.3 billion barrels.
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Here's why you should pay attention to this Dow Dog.
Even though oil prices have relatively sideways in 2013, they're still very much on the high end of their historic range. That means that Chevron is able to collect more for every barrel it pulls out of the ground, and it's able to keep more oil projects economically viable in this environment. While competitors have been adding natural gas to their reserves, CVX has kept its production mix skewed heavily towards oil; around 70% of the firm's production is oil today, leading to a much larger payout while peers wait for natgas prices to rebound.
Sure, Chevron is investing more in natural gas right now, but it's been conservative in its exposure to this point, and that's been a prescient move. Chevron's balance sheet has been equally impressive. While the energy sector is very capital-intense, CVX actually sports a $27.5 billion net cash and investment position right now. That's enough to pay for 12% of the firm's market capitalization outright.
Again, here's a stock with a single-digit P/E multiple right now. Bottom line: CVX looks cheap.