Jim Cramer Adds Chevron (CVX) to His Fantasy Portfolio as the Final Kicker

On September 8, CNBC's Mad Money host Jim Cramer added Chevron Corporation (CVX) to his fantasy portfolio, likening it to a reliable kicker in football. Comparing it to Houston Texans kicker Ka'im Isaac Fairbairn, Cramer explained that just like a kicker provides stability with consistent points, Chevron offers steady returns through its dividend yield of 3.4%.

The stock has surged nearly 40% this year, mirroring a successful season of long field goals for a kicker. Chevron's growth stems from its massive scale and disciplined cash generation, as evidenced by its second-quarter earnings report, which reported $70.06 billion in total revenues and $12.1 billion in net income. The company's production increased by 20% year-over-year to 4.07 million barrels per day, driven by legacy assets, expanding output in the Permian Basin, and strong Gulf of Mexico performance.

Operational efficiency also improved, with Chevron meeting its $3 billion cost reduction target ahead of schedule. Analysts have also shown confidence in Chevron, with BMO Capital raising its price target to $235 and Piper Sandler increasing it to $243. However, Chevron remains vulnerable to external factors such as fluctuations in oil prices and upcoming maintenance cycles.

Despite this, the hedge fund exposure to Chevron remains stable, with 101 funds holding a stake and no significant short interest. The analyst believes Chevron's combination of steady dividends and potential for high returns makes it a reliable addition to any portfolio.