In this article, we discuss the 5 best oil stocks to buy according to hedge funds. If you want to read about some more oil stocks, go directly to 10 Best Oil Stocks To Buy According To Hedge Funds.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 59
Chevron Corporation (NYSE:CVX) engages in integrated energy and chemical operations worldwide. It is one of the elite energy stocks to invest in. On September 19, news agency Reuters reported that the company was offering other energy giants stakes in more than 2,000 oil and gas wells in Alaska. Per the agency, the sale could rake in around $450 million to $550 million for the firm. The three fields produce 9,400 boe/day of oil and gas.
On September 12, investment advisory Piper Sandler maintained an Overweight rating on Chevron Corporation (NYSE:CVX) stock and raised the price target to $190 from $189. Analyst Ryan Todd issued the ratings update.
At the end of the second quarter of 2022, 59 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Chevron Corporation (NYSE:CVX), compared to 53 the preceding quarter worth $27.99 billion.
In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
4. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 65
Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company primarily engaged in the liquefied natural gas (LNG) related businesses in the United States. It is one of the top energy stocks to invest in. On August 4, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $2.90, missing analyst expectations by $0.50. The revenue over the period was $8 billion, up over 164% compared to the revenue over the same period last year and beating estimates by $1.5 billion.
On September 19, Stifel analyst Benjamin Nolan maintained a Buy rating on Cheniere Energy, Inc. (NYSE:LNG) stock and raised the price target to $201 from $159, appreciating the second quarter earnings of the firm and raised guidance numbers.
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.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Cheniere Energy, Inc. (NYSE:LNG) was one of them. Here is what the fund said:
“Cheniere Energy, Inc. (NYSE:LNG) 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.”
3. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY), together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties. The firm is among the best energy stocks to invest in. On August 23, the company announced that it would begin construction on the first carbon capture project this fall. The move is part of a larger plan to build its Low Carbon Ventures business. The firm said that the facility would begin operations by 2024.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.8 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 in the previous quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum Corporation (NYSE:OXY), Continental Resources (CLR) and ConocoPhillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 71
ConocoPhillips (NYSE:COP) 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. On September 6, the company announced that it would be overseeing a carbon capture and storage facility for a proposed US hydrogen gas project to be developed as a partnership with top Japanese utility JERA.
On September 12, Piper Sandler analyst Ryan Todd maintained an Overweight rating on ConocoPhillips (NYSE:COP) stock and raised the price target to $134 from $123, noting that despite near-term risk, there was no change to strategic priorities across upstream coverage.
At the end of the second quarter of 2022, 71 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in ConocoPhillips (NYSE:COP), compared to 67 in the previous quarter worth $2.6 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“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.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas. The firm features on the list of best energy stocks to invest in. In late August, news agency Reuters reported that the company had agreed to sell the natural gas properties it owned in Arkansas to Flywheel Energy. The financial terms of the deal were undisclosed. In 2010, XTO Energy, a unit of Exxon, had acquired the Fayetteville shale assets for $650 million.
On September 12, investment advisory Piper Sandler maintained an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) stock and lowered the price target to $108 from $109. Analyst Ryan Todd issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Exxon Mobil Corporation (NYSE:XOM), with 47.5 million shares worth more than $4.1 billion.
In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) 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 industry wide 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.”
You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.
