In this article, we will discuss 5 best oil stocks to buy according to hedge funds. For a detailed analysis of the oil industry companies, you can directly go to 12 best oil stocks to buy according to hedge funds.
5. Schlumberger Limited (NYSE:SLB)
No. of Hedge Fund Holders: 63
Schlumberger Limited (NYSE:SLB) is a technology company which partners with customers to access energy by offering digital solutions and innovative technologies to enhance performance and sustainability for the global energy industry.
Schlumberger Limited (NYSE:SLB) announced that it has entered into an agreement for the acquisition of Gyrodata Incorporated, a company which specializes in gyroscopic wellbore positioning and survey technology.
Schlumberger Limited (NYSE:SLB) released its results for Q3 2022. It has posted revenues of $7.5 billion in the third quarter, exhibiting 10% growth as compared to Q2 2022 and 28% improvement year-on-year. Strong results for Q3 2022 exhibit acceleration of international momentum and strong execution across divisions and areas. Revenues and margins improved against Q2 2022 as growth pace in international business stepped up significantly. For full year 2022, Schlumberger Limited (NYSE:SLB) expects capital investment to be approximately $2.2 billion.
VP Kevin Fyfe decided to sell 6,095 shares of Schlumberger Limited (NYSE:SLB) on November 7. This transaction was done at an average price of $53.00, totalling $323,035.00. Following this, vice president owns 35,535 shares, valued at $1,883,355.
Analysts at Citigroup initiated the coverage on the shares of Schlumberger Limited (NYSE:SLB). They upped their price target to $62.00 in a report dated November 16.
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4. ConocoPhillips (NYSE:COP)
No. of Hedge Fund Holders: 64
ConocoPhillips (NYSE:COP) is one of the world’s leading exploration and production companies.
ConocoPhillips (NYSE:COP) distributed $4.3 billion to its shareholders in Q3 2022 and it announced an increase to its ordinary dividend which will come into effect in Q4 2022.
Production for the third quarter of 2022 came in at 1,754 thousand barrels of oil equivalent per day (MBOED), exhibiting an increase of 210 MBOED year-over-year. The company’s Lower 48 business unit accomplished record production of over 1 million barrels of oil equivalent per day.
Barclays covered ConocoPhillips (NYSE:COP) on December 7 and raised its price objective from $135.00 to $151.00. It gave an “Overweight” rating on the shares of the company.
According to Insider Monkey’s third quarter database, 64 hedge funds were long ConocoPhillips (NYSE:COP), compared to 71 funds in the earlier quarter.
ClearBridge Investments, an investment firm, published its third quarter 2022 investor letter and mentioned ConocoPhillips (NYSE:COP). Here is what the fund said:
“ConocoPhillips (NYSE:COP) handily outperformed the energy sector, which led the value benchmark. Its exposure to natural gas helped the stock perform more in line with natural gas E&Ps, which led the sector due to the European energy crisis and U.S. shale gas being considered a secure long-term source of liquid natural gas. In addition to COP’s low-cost resource base, conservative balance sheet and experienced management team, we appreciate its strong focus on ESG measures, which we believe is a good indicator of the quality of a company’s business model and management team.
Specifically, we appreciate solid governance practices with compensation metrics emphasizing ROCE and relative total shareholder return, the board’s effective oversight of management as well as the company’s methane flaring leadership. COP is investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with a CO2 intensity of sub-5 kg/BOE, which would be one of the lowest emission sources of supply in the world.”
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3. Chevron Corporation (NYSE:CVX)
No. of Hedge Fund Holders: 66
Chevron Corporation (NYSE:CVX) is an integrated leading energy company. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals and additives, and also develops technologies enhancing the business and industry.
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX), has closed its acquisition of full ownership of Beyond6, LLC and its nationwide network of compressed natural gas stations.
Chevron Corporation (NYSE:CVX) has released its Q3 2022 results. The company saw earnings of $11.2 billion in Q3 2022 against $6.1 billion in Q3 2021. Its sales and other operating revenues were $64 billion against $43 billion in the year-ago period.
Analysts at Cowen upped their price objective on the shares of Chevron Corporation (NYSE:CVX) from $160.00 to $185.00 on October 31. They gave an “Outperform” rating on the company’s stock.
During Q3 2022, Chevron Corporation (NYSE:CVX) paid dividends of $2.7 billion (6% higher per share against Q3 2021), increased investments by more than 50% in comparison to last year, paid down debt for 6th consecutive quarter, and repurchased $3.75 billion of shares.
According to Insider Monkey’s data, 66 hedge funds were long Chevron Corporation (NYSE:CVX) at the end of Q3 2022, compared to 59 funds in the earlier quarter.
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2. Occidental Petroleum Corporation (NYSE:OXY)
No. of Hedge Fund Holders: 74
Occidental Petroleum Corporation (NYSE:OXY) is an international energy company, having assets principally in the US, the Middle East and North Africa. The company is one of the largest oil producers in the U.S.
The company has released its Q3 2022 results. It surpassed production guidance midpoint by 25 Mboed, with production of 1,180 Mboed. Oil and gas pre-tax income for Q3 2022 came at $3.3 billion against pre-tax income of $4.1 billion for Q2 2022. Excluding the items which affect comparability, fall in oil and gas income against Q2 2022 was because of lower crude oil and natural gas liquids (NGL) prices. However, this decrease was limited by rise in sales volumes throughout commodities, higher gas prices and lower DD&A rates.
Morgan Stanley covered Occidental Petroleum Corporation (NYSE:OXY) and it raised its price target from $73.00 to $74.00, giving an “Equal weight” rating on December 14.
Occidental Petroleum Corporation (NYSE:OXY) ranks 2nd on our list of 12 Best Oil Stocks To Buy According To Hedge Funds.
A total of 74 hedge funds tracked by Insider Monkey held stakes in Occidental Petroleum Corporation (NYSE:OXY) at the end of third quarter of 2022. The value of their stakes was $15.6 billion.
Smead Capital Management, an investment management company, released its investor letter for Q3 2022. Here is what the fund said:
“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”
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1. Exxon Mobil Corporation (NYSE:XOM)
No. of Hedge Fund Holders: 75
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest publicly traded energy providers and chemical manufacturers. The company is engaged in developing and applying next-generation technologies to help meet the world’s growing needs for energy and high-quality chemical products.
Exxon Mobil Corporation (NYSE:XOM) ranks 1st on our list of 12 Best Oil Stocks To Buy According To Hedge Funds.
Exxon Mobil Corporation (NYSE:XOM) has released its results for Q3 2022. It posted earnings of $19.7 billion in Q3 2022 against $17.9 billion in Q2 2022. Excluding identified items, earnings came in at $18.7 billion and were up $1.1 billion against the prior quarter. This was due to higher natural gas realizations, record throughput in Energy Products, and cost control.
Analysts at HSBC lifted their price target on the shares of Exxon Mobil Corporation (NYSE:XOM) to $111.00 on December 2.
Insider Monkey’s database shows that 75 hedge funds ended the third quarter with stock in their portfolios, compared to 72 hedge funds in the previous quarter.
First Eagle Investments, an independent, privately owned asset management firm, published its second-quarter 2022 investor letter and mentioned Exxon Mobil Corporation (NYSE:XOM). Here is what the fund said:
“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.”
You can also take a look at 12 Oil Stocks with Biggest Upside and 10 Best Oil Refinery Stocks To Buy
