In this article, we discuss the 5 best LNG and LNG shipping stocks to buy now. If you want to read about some more LNG and LNG shipping stocks, go directly to the 11 Best LNG and LNG Shipping Stocks to Buy Now.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 58
Situated in Houston, Texas, Cheniere Energy, Inc. (NYSE:LNG) is actively involved in the LNG business and manages the Sabine Pass LNG terminal in Louisiana. On November 8, Cheniere Energy, Inc. (NYSE:LNG) stated that it anticipates that the inaugural LNG cargo from its Corpus Christi Liquefaction Stage 3 (CCL Stage 3) brownfield expansion project will depart by the end of 2024, surpassing the initially projected timeline.
Out of the 910 hedge funds in Insider Monkey’s database, 58 hedge funds had stakes in Cheniere Energy, Inc. (NYSE:LNG). The biggest hedge fund stakeholder of Cheniere Energy, Inc. (NYSE:LNG) was D E Shaw which owns a $222.3 million stake in the company.
TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Cheniere Energy, Inc. (NYSE:LNG) in its Q4 2022 investor letter:
“Within Energy, Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company that operates liquefied natural gas (LNG) terminals in Louisiana and Texas. Despite reporting inline for the latest quarter, its stock traded down -9%. Contributing factors were Europe had filled its storage ahead of the winter and a recent dip in natural gas pricing. The market for LNG is likely to remain tight for the next several years. Notably, Cheniere paid down $1.3 billion of long-term debt and repurchased $75 million of common stock during the quarter. Cheniere is well positioned to benefit from ongoing tightness in global gas markets.”
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 62
ConocoPhillips (NYSE:COP), headquartered in Houston, Texas, operates as an independent exploration and production (E&P) company. It is actively involved in the worldwide exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas.
On November 2, ConocoPhillips (NYSE:COP) surpassed Wall Street’s expectations for third-quarter profit and announced a 14% increase in its quarterly dividend. This move led to a more than 5% increase in the company’s shares. ConocoPhillips (NYSE:COP) noted that it has the potential to maintain this elevated dividend level through 2024, contingent on oil and gas price dynamics.
A total of 62 hedge funds tracked by Insider Monkey had stakes in ConocoPhillips (NYSE:COP) as of the end of the third quarter of 2023. The biggest stakeholder of ConocoPhillips (NYSE:COP) was Natixis Global Asset Management’s Harris Associates which owns a $1.61 billion stake in the company.
Oakmark Select Fund made the following comment about ConocoPhillips (NYSE:COP) in its second quarter 2023 investor letter:
“ConocoPhillips (NYSE:COP) is one of the largest and most efficient exploration and production companies in the country. The company has an extensive resource base of high-quality drilling inventory in the U.S. and various international locations as well as a growing liquified natural gas business. In our view, the depth and quality of ConocoPhillips’s inventory is a competitive differentiator that is not fully captured in today’s share price. Over the next 10 years, we believe ConocoPhillips will be able to return more than 100% of its current market cap to shareholders via dividends and share repurchases while growing its production at a mid-single-digit annual pace. We believe ConocoPhillips is also among the best managed companies in the oil and gas industry and we are impressed by its history of accretive capital allocation under CEO Ryan Lance. The stock has meaningfully underperformed the broader market year-to-date and is an attractive addition to our portfolio.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 73
Chevron Corporation (NYSE:CVX) is a prominent American multinational energy company, primarily concentrated in the oil and gas industry. Originating as the Standard Oil Company of California, it stands as the second-largest direct descendant of Standard Oil. The company is headquartered in San Ramon, California, and conducts operations across more than 180 countries globally.
On October 27, the energy company declared a quarterly dividend of $1.51 per share, maintaining the same dividend amount as the previous period. Notably, the company has consistently increased dividends for the past 36 consecutive years, demonstrating a commitment to rewarding shareholders.
By the end of this year’s second quarter, 72 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Chevron Corporation (NYSE:CVX). Out of these, the firm’s biggest investor is Warren Buffett’s Berkshire Hathaway since it owns 110.2 million shares that are worth $18.59 billion.
The London Company Large Cap Strategy made the following comment about Chevron Corporation (NYSE:CVX) in its first quarter 2023 investor letter:
“Initiated: Chevron Corporation (NYSE:CVX) – CVX is an integrated energy and chemical producer. Its upstream segment explores for, produces, processes and transfers energy products. Its downstream segment refines and markets these products in addition to industrial plastics and fuel and lubricant additives. Among the major oil companies, CVX is the most levered to oil and gas production; it has one of the most successful exploration programs and among the best production profiles. CVX also has less exposure to the downstream business, which provides an above-peer operating margin profile and supports CVX’s return on invested capital. CVX has one of the strongest balance sheets in the oil industry with net debt/EBITDA of just 0.1x. The combination of its low cost positioning and strong balance sheet gives us greater confidence in downside protection despite its ties to a volatile commodity. We’re attracted to management’s rational approach to capital allocation, with consideration for the full cycle. In terms of capital allocation, CVX just announced a $75B share repurchase plan, and it pays a healthy 3.5% dividend. We have owned CVX in the past and it is the only Energy exposure in the Large Cap portfolio.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 75
Occidental Petroleum Corporation (NYSE:OXY) is an American company specializing in hydrocarbon exploration in the United States and the Middle East. Organized in Delaware, Occidental Petroleum Corporation (NYSE:OXY) has its headquarters in Houston. The company operates through three segments: oil and gas, chemical, and midstream and marketing. The oil and gas segment is engaged in exploring, developing, and producing oil, including condensate, natural gas liquids, and natural gas.
In August, Occidental Petroleum Corporation (NYSE:OXY) executed a $1.1 billion deal to acquire Carbon Engineering Ltd, a technology supplier. This strategic move is part of Occidental’s plan to establish a series of carbon-capture facilities, aiming to address climate change and generate revenue. The company aims to construct approximately 100 plants utilizing direct air capture (DAC) technology, which removes carbon dioxide (CO2) directly from the atmosphere. The captured CO2 can then be stored underground or used in various applications, including the production of concrete and aviation fuel.
A total of 75 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Occidental Petroleum. The biggest stakeholder of the company was Warren Buffett’s Berkshire Hathaway which had a $14.54 billion stake in the company.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 79
Exxon Mobil Corporation (NYSE:XOM) has been a key leader in the LNG business, with over 40 years of LNG project development experience. Boasting a heritage dating back to John D. Rockefeller’s Standard Oil, Exxon Mobil Corporation (NYSE: XOM) has undergone an evolution over 140 years. Initially established as a local kerosene distributor in the United States, the company has grown into a global powerhouse, standing among the leading publicly traded names in the petroleum and petrochemical sectors.
On November 2, Exxon Mobil Corporation (NYSE:XOM) announced the successful completion of its acquisition of Denbury Inc. in an all-stock transaction valued at $4.9 billion, equivalent to $89.45 per share based on XOM’s closing price on July 12, 2023. According to the terms of the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share. The acquisition encompasses Gulf Coast and Rocky Mountain oil and natural gas operations, which include proven reserves exceeding 200 million barrels of oil equivalent (MMboe) as of year-end 2022, along with approximately 46,000 barrels of oil equivalent per day (boed) in current production. These operations not only generate immediate operating cash flow but also provide flexibility for carbon capture initiatives.
By the end of Q3 2023, data from Insider Monkey’s database revealed that 79 hedge funds had positions in Exxon Mobil Corporation (NYSE:XOM), an increase from the 71 hedge funds in the previous quarter. The combined value of these holdings exceeds $4.48 billion.
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