In this piece, we will take a look at the five cheap oil stocks under $10. If you want to take a look at more stocks, then head on over to 10 Cheap Oil Stocks Under $10.
5. Helix Energy Solutions Group, Inc. (NYSE:HLX)
Number of Hedge Fund Holders: 15
Helix Energy Solutions Group, Inc. (NYSE:HLX) is an energy company that provides well management, production, and robotics services to the energy industry. These include site inspection, flowline installation, and maintenance of production structures.
Helix Energy Solutions Group, Inc. (NYSE:HLX) is forecast to generate $40 million in operating income this year and grow this to $50 million next year. The firm grew its well intervention rate by 30% to sit at 45% in its second quarter, and its Siem Helix 2 project in Brazil saw a whopping utilization rate of 99% during the same time period. The robotics segment grew operating income by 553% sequentially in Q2, with average utilization of 94%.
Piper Sandler set an Overweight rating for the shares and a $7 price target for Helix Energy Solutions Group, Inc. (NYSE:HLX) in October 2022, stating that strong free cash flows next year will boost the overall industry. Insider Monkey took a look at 895 hedge funds during this year’s June quarter to determine that 15 had owned a stake in the company.
Helix Energy Solutions Group, Inc. (NYSE:HLX)’s largest investor is William B. Gray’s Orbis Investment Management which owns 2.4 million shares that are worth $7.4 million.
4. Berry Corporation (NASDAQ:BRY)
Number of Hedge Fund Holders: 19
Berry Corporation (NASDAQ:BRY) is involved in both exploring for and producing oil and managing and closing down wells. The company is headquartered in Dallas, Texas, the United States.
Berry Corporation (NASDAQ:BRY) posted $110 million in operating income during the second quarter, which marked a strong 52% annual increase. The company also aims to maintain its current oil production this year, which will prove easy since 90% of its oil comes from existing production fields – saving it from the tedious process of securing new permits and installing new equipment.
Jefferies set a $10 share price target for the company in October 2022, as it shared that a constrained capital cycle will aid the energy industry’s value. By the end of this year’s second quarter, 19 out of the 895 hedge funds polled by Insider Monkey had held a stake in Berry Corporation (NASDAQ:BRY).
Out of these, Howard Marks’s Oaktree Capital Management is Berry Corporation (NASDAQ:BRY)’s largest investor. It owns 11.6 million shares that are worth $88 million.
3. Kosmos Energy Ltd. (NYSE:KOS)
Number of Hedge Fund Holders: 25
Kosmos Energy Ltd. (NYSE:KOS) is an oil and gas exploration company that produces oil from the Gulf of Mexico, Senegal, Ghana, and Equatorial Guinea. The firm is headquartered in Dallas, Texas, the United States.
Kosmos Energy Ltd. (NYSE:KOS) is investing heavily in production, and it expects its Tortue, Jubilee Southeast, and Winterfell assets to add as much as 50% to its production capacity by 2024. Kosmos Energy Ltd. (NYSE:KOS)’s field in Ghana produced 74,000 barrels of oil daily in its second quarter, and its Jubilee Southeast field delivered another 90,000 barrels.
Kosmos Energy Ltd. (NYSE:KOS) also strengthened its balance sheet in the second quarter by reducing $400 million in net debt. Berenberg increased its share price target to $8.5 from $8.3 in August 2022, stating that the firm has a bright future. As this year’s second quarter ended, 25 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
Kosmos Energy Ltd. (NYSE:KOS)’s largest investor is D.E. Shaw’s D E Shaw which owns 10.5 million shares that are worth $65 million.
2. Equitrans Midstream Corporation (NYSE:ETRN)
Number of Hedge Fund Holders: 28
Equitrans Midstream Corporation (NYSE:ETRN) is a midstream oil and gas company that gathers, transports, and stores the fuels. It has more than a thousand fuel lines and is based in Canonsburg, Pennsylvania, the United States.
Equitrans Midstream Corporation (NYSE:ETRN) is aiming to bring in $1.05 billion in operating income this year, after raising the guidance and providing investors with assurance in the aftermath of weak results for 2022’s first half. However, despite the stale performance, the firm focused on its balance sheet in H1 2022, and it managed to reduce its net debt to $6.734 billion.
Equitrans Midstream Corporation (NYSE:ETRN) also pays a 15 cent dividend for a 7.42% yield. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 28 had held a stake in the company.
Equitrans Midstream Corporation (NYSE:ETRN)’s largest investor is Stuart J. Zimmer’s Zimmer Partners which owns 21 million shares that are worth $139 million.
Steel City Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
The Partnership began acquiring shares in late June / early July when ETRN was trading around $6.00. As a general matter, I disdain using DCF for valuation purposes, as it’s a silly exercise that involves a lot of bullshit guessing about the future. But there are exceptions to every rule, and ETRN is one of them. This is a business that is fairly simple to model. Certain volumes are contractually set. Non-contractual volumes should continue flowing even in a depressed natural gas price environment (and today’s price environment is anything but weak). And prices for volumes are known variables (again, with a significant portion being contractually set.. (Click here to read more)”
1. Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 28
Transocean Ltd. (NYSE:RIG) provides drilling services for oil and gas wells. The company owns close to forty drilling units, with the portfolio made up of offshore drilling units and deep water and harsh environment floaters. It is based in Steinhausen, Switzerland.
Transocean Ltd. (NYSE:RIG)’s fleet status report as of October 2022 saw firm demand for the company’s products as the growing global demand for oil kept its orders busy. The company outlined that it had secured $1.6 billion worth of awards that saw it engage with seven different customers. This also enabled Transocean Ltd. (NYSE:RIG)’s backlog to grow to $7.3 billion for an 18% annual increase.
Crucially, Transocean Ltd. (NYSE:RIG) might benefit from increased dayrates as soon as next year, with executives in the industry expecting the rates to cross $500,000. Insider Monkey’s 895 hedge fund survey for this year’s second quarter saw 28 investors in the company.
Out of these, D.E. Shaw’s D E Shaw is Transocean Ltd. (NYSE:RIG)’s largest shareholder. It owns 24.5 million shares that are worth $81 million.
Disclosure: None. You can also take a look at 11 Best Income Stocks to Buy Right Now and 10 Biggest Industries In the US.
