1. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 49
The main office of Southwestern Energy Company (NYSE:SWN), a producer and exploratory natural gas firm, is located in Spring, Texas. The development of unconventional natural gas reservoirs in the Appalachian Basin and Haynesville Shale is the main focus of the company’s operations.
The company reported operational revenues of $1.08 billion for the second quarter of 2024, with an EPS of $0.10 that marginally exceeded analysts’ projections. The gas company beat earnings estimates for the third time in the previous four quarters. Analysts speculate that the stronger-than-expected earnings were probably caused by a higher realization of oil and gas prices.
Southwestern Energy Company’s (NYSE:SWN) production statistics were equally impressive in Q2 2024, with a total net production of 379 Bcfe, or 4.2 Bcfe per day. This includes the daily output of 101 MBbl of liquids and 3.6 Bcf of gas. In addition, the company invested $430 million in capital projects, which included drilling 30 wells, finishing 23 wells, and listing 22 wells for sale.
At the conclusion of the second quarter 2024, Southwestern Energy Company (NYSE:SWN) had $4.2 billion in total debt, with a net debt to adjusted EBITDA (non-GAAP) ratio of 2.1x, suggesting a manageable leverage profile.
Following the successful completion of its merger with Southwestern Energy Company on October 2, 2024, Chesapeake Energy Corporation formed Expand Energy Corporation, which is currently the largest independent natural gas producer in the country. Southwestern’s prior financial obligations, such as the cancellation of its credit agreement and the delisting of its stock from the NYSE, have been fulfilled with the merger. Under the symbol “EXE,” the recently established Expand Energy will start trading on the NASDAQ. Significant synergies, improved margins, and a wider market reach are anticipated from the transaction, which will lower energy costs and raise shareholder value. While keeping an eye on operational effectiveness and financial stability, the organization is also well-positioned to provide an affordable and sustainable energy future.
Israel Englander’s Millennium Management is the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 24,923,413 shares worth $167.73 million as of Q2.
Overall, SWN ranks first among the Renaissance Technologies Portfolio: 10 Best Stocks To Buy. While we acknowledge the potential of pharmaceutical companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SWN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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