10 Best American Energy Stocks To Buy According to Hedge Funds

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 66             

ConocoPhillips (NYSE:COP) is an independent exploration and production company headquartered in the United States. ConocoPhillips has set up a 10-year plan for constrained investment, steady development, improved returns, and, most crucially, cash distributions to shareholders, distinguishing itself from larger and smaller competitors. Conoco’s strategy, which includes a defined policy on cash return to shareholders and a commitment to capital restraint, makes it an attractive choice in the energy sector. Its excellent financial position protects the dividend in a downcycle, and its low-cost portfolio offers it high-return investment choices to grow in a rising price environment.

In Q3 of 2024, the operating activities generated $5.8 billion in cash, with cash from operations amounting to $4.7 billion. The ordinary dividend was raised by 34% to $0.78 per share, while the authorization to repurchase existing shares was expanded to $20 billion.

On November 22, 2024, ConocoPhillips (NYSE:COP) finalized the acquisition of Marathon Oil Corporation (NYSE: MRO), which improved long-term growth prospects. Over the course of the next 12 months, the company anticipates generating synergies of more than $1 billion on a run-rate basis.

Susquehanna analyst Biju Perincheril maintained a positive recommendation on ConocoPhillips (NYSE:COP) and increased the price target to $148 from $144 on November 1, 2024. Strong L-48 performance drove the company’s Q3 results, which included a beat in both output and EPS. The firm raised its synergy target for the MRO purchase to $1 billion from $500 million before, driven by a $500 million reduction in capex for the combined company as it requires fewer rigs and frac crews to meet its low-single-digit growth aim.

Boykin Curry’s Eagle Capital Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 15,214,281 shares worth $1.60 billion as of Q3.