The Gabelli Equity Income Fund on Chevron Corp.
Thesis
Chevron has completed a major investment cycle and now enters a period of lower capital intensity and faster cash generation. The Hess acquisition adds a major Guyana resource position, while existing projects support production and free-cash-flow growth. Management expects substantial cash returns through annual buybacks and a growing dividend.
“Chevron now enters a period of declining capital intensity and accelerating cash generation.”