5 Best Performing Energy Stocks in 2022

In this article, we discuss 5 best performing energy stocks in 2022. If you want to see more stocks in this selection, check out 12 Best Performing Energy Stocks in 2022. 

5. Helmerich & Payne, Inc. (NYSE:HP)

Number of Hedge Fund Holders: 30

YTD Share Price Gain as of December 27: 94.03%

Helmerich & Payne, Inc. (NYSE:HP) was founded in 1920 and is headquartered in Tulsa, Oklahoma. It provides drilling services and solutions for exploration and production companies. The company operates through three segments – North America Solutions, Offshore Gulf of Mexico, and International Solutions. With shares up 94% year-to-date as of December 27, Helmerich & Payne, Inc. (NYSE:HP) is one of the best performing energy stocks this year. Despite missing FQ4 earnings expectations, analysts appreciated the company’s growing margins and commitment to return cash to shareholders.

On November 18, RBC Capital analyst Keith Mackey raised the price target on Helmerich & Payne, Inc. (NYSE:HP) to $68 from $63 and reiterated an Outperform rating on the shares. The analyst noted that the company’s Q4 results largely matched its pre-released numbers and he expects margin expansion from progressing day rates and contract rollover in a tight North American rig market. He added that the international expansion by Helmerich & Payne, Inc. (NYSE:HP) also has the potential to move estimates higher in later years.

According to Insider Monkey’s data, Helmerich & Payne, Inc. (NYSE:HP) was part of 30 hedge fund portfolios at the end of September 2022, compared to 26 in the prior quarter. Ken Fisher’s Fisher Asset Management held the biggest position in the company, with 1 million shares worth $37.4 million. 

4. NexTier Oilfield Solutions Inc. (NYSE:NEX)

Number of Hedge Fund Holders: 32

YTD Share Price Gain as of December 27: 145.99%

NexTier Oilfield Solutions Inc. (NYSE:NEX) is a Texas-based provider of well completion and production services in various active and demanding basins. The company operates through two segments, Completion Services, and Well Construction and Intervention Services. It is one of the best performing energy stocks in 2022, with shares up 146% year-to-date as of December 27. 

On December 9, Raymond James analyst James Rollyson initiated coverage of NexTier Oilfield Solutions Inc. (NYSE:NEX) with a Strong Buy rating and a $19 price target. A sustained period of underinvestment, paired with growing energy transition challenges, set up the present oil supply situation, for “which there is no short term fix,” the analyst told investors.

According to Insider Monkey’s data, 32 hedge funds were bullish on NexTier Oilfield Solutions Inc. (NYSE:NEX) at the end of September 2022, compared to 30 funds in the prior quarter. Stephen Feinberg’s Cerberus Capital Management is the biggest position holder in the company, with 27.4 million shares worth $192.75 million. 

Here is what Aristotle Capital Management Small Cap Equity has to say about NexTier Oilfield Solutions Inc. (NYSE:NEX) in its Q1 2022 investor letter:

“NexTier Oilfield Solutions (NYSE:NEX), a provider of hydraulic fracturing and other completion-oriented oilfield services to exploration and production companies in the U.S., benefited from rising U.S. completion activity and rising prices due to tight supply/demand fundamentals for frac equipment. We maintain a position, as we believe the company’s dedicated service agreements, solid execution and merger synergies from recent mergers and acquisitions activity can unlock additional value for shareholders in periods to come.”

3. PBF Energy Inc. (NYSE:PBF)

Number of Hedge Fund Holders: 32

YTD Share Price Gain as of December 27: 194.15%

PBF Energy Inc. (NYSE:PBF) is a New Jersey-based company engaged in refining and supplying petroleum products. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, asphalt, petrochemical feedstocks, blending components, and other petroleum products. PBF Energy Inc. (NYSE:PBF) shares have climbed over 194% year-to-date as of December 27, making it one of the best performing stocks in 2022. 

On December 12, PBF Energy Inc. (NYSE:PBF) announced that its board authorized the repurchase of up to $500 million of its class A stock, which sent its shares 7.3% higher. 

​​Piper Sandler analyst Ryan Todd on November 9 raised the price target on PBF Energy Inc. (NYSE:PBF) to $69 from $53 and maintained an Overweight rating on the shares. Despite investor concerns of a “one off” boom in refining margins during 2022, recent earnings results from the independent refiners and “persistent systemic tightness have made it abundantly clear that global tightness in refined product markets is likely to persist for quite some time,” the analyst wrote in a research note. He lifted his 2023 outlook for refining margins to within 10% of 2022 margins.

According to Insider Monkey’s Q3 data, 32 hedge funds were long PBF Energy Inc. (NYSE:PBF), compared to 31 funds in the prior quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with 2.3 million shares worth $82.3 million. 

2. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders: 50

YTD Share Price Gain as of December 27: 78.16%

Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company in the United States. It operates in two segments, Refining & Marketing, and Midstream. The company beat expectations for Q3 adjusted earnings and revenue, as demand for fuel and refined products rose while supplies were constrained. Marathon Petroleum Corporation (NYSE:MPC) raised its quarterly dividend by 29% to $0.75 per share from $0.58 per share. Q3 net income also climbed more than six-fold to $4.48 billion. It is one of the best performing energy stocks in 2022. 

On December 19, Piper Sandler analyst Ryan Todd maintained a Neutral rating on Marathon Petroleum Corporation (NYSE:MPC) and lowered the firm’s price target on the shares to $143 from $153. “Even after two years of outperformance,” the analyst remains constructive on the energy complex into 2023.

According to Insider Monkey’s third quarter database, 50 hedge funds held stakes worth $2.77 billion in Marathon Petroleum Corporation (NYSE:MPC), and Paul Singer’s Elliott Management held the largest position, comprising 11 million shares worth $1 billion. 

Here is what Clark Street Value has to say about Marathon Petroleum Corporation (NYSE:MPC) in its Q4 2021 investor letter:

“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later.  Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”

1. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 74

YTD Share Price Gain as of December 27: 107.98%

Occidental Petroleum Corporation (NYSE:OXY) is one of the best performing energy stocks of 2022, with share price gains of 108% year-to-date as of December 27. The company engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Occidental Petroleum Corporation (NYSE:OXY) is set to pay a $0.13 per share quarterly dividend on January 17, 2023 to shareholders of record on December 12. 

On December 7, Barclays analyst Jeanine Wai maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) but trimmed the firm’s price target on the shares to $74 from $84 following the Q3 results.

According to Insider Monkey’s data, Occidental Petroleum Corporation (NYSE:OXY) was part of 74 hedge fund portfolios at the end of Q3 2022, compared to 66 in the last quarter. Occidental Petroleum Corporation (NYSE:OXY)’s largest stakeholder is Warren Buffett’s Berkshire Hathaway, with 194.35 million shares worth nearly $12 billion as of the end of September 2022. 

Here is what Smead Value Fund has to say about Occidental Petroleum Corporation in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter include 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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