In this article, we discuss the 5 best LNG and LNG shipping stocks to buy now. If you want to see more stocks in this selection, check out the 10 Best LNG and LNG Shipping Stocks to Buy Now.
05. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders as of Q2, 2022: 57
Devon Energy Corporation (NYSE:DVN), an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. The company has been making consistent dividend payments for the past 29 years and has raised its payouts every year since 2016. On August 1, it announced a 22% hike in its quarterly dividend to $1.55 per share. As of October 13, the stock has a dividend yield of 6.52%. This May, Devon Energy Corporation (NYSE:DVN) also expanded its previous share repurchase program by 25% to $2 billion. The new authorization has now extended its share buyback through May 4, 2023.
On September 21, Citi analyst Scott Gruber raised his price target for Devon Energy Corporation (NYSE:DVN) from $62 to $77 while maintaining a Buy rating for the stock. In a research note, Gruber informs investors that despite the decline in oil prices, the exploration and production businesses have “bounced modestly, leading to substantial 2023 multiple expansion and yield compression.”
At the end of Q2 2022, 57 hedge funds tracked by Insider Monkey owned stakes in Devon Energy Corporation (NYSE:DVN), compared with 66 in the previous quarter. These stakes are collectively valued at $1.48 billion. With roughly 15 million DVN shares, GQG Partners was the company’s leading stakeholder in Q2. GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:
“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”
04. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders as of Q2, 2022: 59
Chevron Corporation (NYSE:CVX) is an American multinational energy corporation. Chevron Corporation (NYSE:CVX) is one of the best dividend aristocrat stocks to buy heading into a recession. On July 27, Chevron Corporation (NYSE:CVX) declared a quarterly dividend of $1.42 per share, in line with its previous dividend. The company has a 35-year run of raising its dividends consistently. As of October 13, the stock’s dividend yield came in at 5.23%.
Piper Sandler analyst Ryan Todd on September 12 raised the price target on Chevron Corporation (NYSE:CVX) to $190 from $189 and kept an Overweight rating on the shares, citing a constructive stance on the integrated oils group. According to Insider Monkey’s data, Chevron Corporation (NYSE:CVX) was part of 59 hedge fund portfolios at the end of June 2022, compared to 53 in the last quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 161.4 million shares worth $23.3 million.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter:
“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
03. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders as of Q2, 2022: 65
Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company primarily engaged in liquefied natural gas (LNG) related businesses in the United States. It is one of the top LNG stocks to invest in. Cheniere Energy, Inc. (NYSE:LNG) anticipates raking in $9.8 billion in operating profits by the end of this year as a result of the robust demand for clean fuel, notably in Europe. It also offers a 40 cent dividend with a yield of 0.92%. On October 12, Barclays analyst Marc Solecitto raised his price target for Cheniere Energy, Inc. (NYSE:LNG) to $200 from $186 while maintaining an Overweight rating on the stock.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Icahn Capital LP is a leading shareholder in Cheniere Energy, Inc. (NYSE:LNG), with 5.6 million shares worth more than $746 million. By the end of Q2, a total of 65 hedge funds tracked by Insider Monkey are holding a stake in Cheniere Energy, Inc. (NYSE:LNG) as compared to 62 in the previous quarter.
ClearBridge Global Infrastructure Value Strategy, in its Q3 2021 investor letter, mentioned Cheniere Energy, Inc. (NYSE: LNG) and discussed its stance on the firm. Here is what the fund said:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
02. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders as of Q2, 2022: 71
ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas. ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. The company is one of the most prominent energy stocks to invest in.
ConocoPhillips (NYSE:COP) has been paying continuous dividends to shareholders since 1993. It currently pays a quarterly dividend of $0.46 per share with a dividend yield of 2.51%, as of October 13. On October 5, Hans Engel, an analyst at Erste Group, raised ConocoPhillips from Hold to Buy. In a research note, Engel informs investors that the company is gaining from the increase in global energy prices and that its operating margins should stay “very high” in 2023. He anticipates that the stock will do better than the global sector index.
At the end of Q2, 71 hedge funds tracked by Insider Monkey owned stakes in ConocoPhillips (NYSE:COP), up from 67 in the previous quarter. The collective value of those stakes was over $2.42 billion. With over 6.7 million shares, Fisher Asset Management owned the largest position in the energy company in Q2.
Diamond Hill Capital mentioned ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter. Here is what the firm had to say:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
01. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders as of Q2, 2022: 72
Exxon Mobil Corporation (NYSE:XOM) was founded in 1870 and is headquartered in Irving, Texas. Exxon Mobil Corporation (NYSE:XOM) explores and produces crude oil and natural gas in the United States and internationally.
Exxon Mobil Corporation (NYSE:XOM) has generated returns of over 60% in the last year. The company is undertaking initiatives to optimize its costs and is expected to surpass the profit margin expectations for this year. Exxon Mobil Corporation (NYSE:XOM) has a forward dividend yield of 3.58% as of October 13. The company has sustained its annual dividend growth for 39 years in a row.
Of the 895 hedge funds tracked by Insider Monkey, 72 funds had investments in Exxon Mobil Corporation (NYSE:XOM) in Q2 2022, compared with 83 in the previous quarter. The total value of these investments came in at over $7.4 billion.
Here’s what First Eagle Investments said about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
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