10 Best Energy Stocks To Buy According to Hedge Funds

2. ConocoPhillips (NYSE:COP)  

Number of Hedge Fund Investors: 72  

ConocoPhillips (NYSE:COP) is a major global energy company with a diverse range of conventional and unconventional assets spread across North America, Europe, and Asia. Its balanced portfolio and strategic operations make it well-positioned to benefit from current trends in the energy market.

On October 23, ConocoPhillips (NYSE:COP) and SEFE (Securing Energy for Europe), a global energy company owned by the Federal Government of Germany entered into a long-term partnership. According to the agreement, ConocoPhillips (NYSE:COP) will supply SEFE with up to 9 billion cubic meters of natural gas over the next 10 years. This strategic partnership aims to strengthen the security of energy supply for Germany and Europe, providing a stable and reliable source of natural gas to meet the region’s growing energy demands.

ConocoPhillips (NYSE:COP) has a large and growing European supply portfolio, including Norwegian natural gas production and LNG imports. Meanwhile, SEFE’s European customer portfolio requires around 20 billion cubic meters of natural gas per year. The first gas deliveries under the agreement have already been successfully completed, with ConocoPhillips (NYSE:COP) set to deliver the natural gas to SEFE at various trading hubs across Europe over the next decade.

In May, ConocoPhillips (NYSE:COP) also announced its plan to acquire Marathon Oil in an all-stock deal valued at $22.5 billion including $5.4 billion of net debt. This acquisition is expected to immediately enhance ConocoPhillips’ (NYSE:COP) earnings, cash flow, and return of capital per share, with cost and capital savings anticipated within the first full year post-closing. The transaction is expected to be finalized in the fourth quarter of 2024, pending regulatory approvals and other customary conditions.